College
Administrators
Administrators
New York Higher Education Loan Program
The New York Higher Education Loan Program (NYHELPs) gives students and families a low - cost way to make up the difference between the cost of college and available financial aid.
Public/Private Partnership for Fixed-Rate Loans
At the core of NYHELPs is a public/private partnership that leverages lender funds to make fixed-rate student loans on behalf of students attending eligible, participating New York colleges. New York State will make available up to $350 million annually to support these fixed-rate loans.Loan Amounts
Eligible students with eligible cosigners, eligible parents, or eligible sponsors will be able to borrow:- Annual maximum loan amounts of the lesser of:
- Cost of attendance minus all other federal (excluding federal PLUS loans) and State financial aid, institutional aid, and private aid, or
- $10,000 per academic year
- Aggregate maximum loan amounts of:
- $20,000 for undergraduates at 2-year institutions
- $50,000 for undergraduates at 4-year institutions
- $70,000 for undergraduate and graduate study combined
Interest Rates and Fees
Interest rates are subject to market conditions at the time of bond issuance. Borrowers will receive a fixed interest rate of 7.55%, 8.25%, or 8.75% on NYHELPs loans of up to $10,000 per academic year beginning with the spring term of the 2009-2010 academic year. The borrower fee for these loans will range from 4% to 8%. This will result in an estimated Annual Percentage Rate (APR) ranging from 8.5% to 10.5% depending on the credit rating of the borrower or his/her cosigner, the loan repayment option selected, and the student’s year in school.| Interest Rates and Fees* | ||
|---|---|---|
| With Cosigner | ||
Loan Repayment Type | Interest Rate | Borrower Default Fee |
| Principal & Interest | 7.55% | 4-6% |
| Interest Only | 8.25% | 5-7% |
| Deferred | 8.75% | 7% |
| Without Cosigner | ||
Loan Repayment Type | Interest Rate | Borrower Default Fee |
| Principal & Interest | 7.55% | 4-8% |
Benefit will be discontinued if borrower has one (1) payment returned due to insufficient funds, misses a payment or discontinues ACH (Automated Clearing House processes monthly consumer payments directly from a participating borrower’s bank account).
NYHELPs loans will be subject to borrower and college fees. The borrower fee may be added to the cost of attendance for the purpose of calculating the loan amount. The college fee may not be passed on to the borrower. The combined fees will vary, based on the underlying credit quality of the borrower and cosigner.
A default reserve fund has been established to encourage lender participation and help ensure that students have continuous access to loans that would not otherwise be available to them. NYHELPs default reserves will be supported by State funds, borrower fees and a one-percent college fee, based on loan dollar volume, for each participating institution. HESC and the State of New York Mortgage Agency (SONYMA) will administer the default reserve funds. This essential support enables favorable borrower interest rates and fees.
Financial Literacy Education Will Be Integral
The Program requires that borrowers complete a comprehensive Web-based financial literacy education program. The e-learning component of the Program helps students learn how to make smart borrowing decisions, provides guidance on the pitfalls of credit card debt, and emphasizes responsibility for paying back their student loans.Application Procedure Will Include Transparent Loan Comparisons
NYHELPs borrowers will apply for their loans online through HESC Student Loan Marketplace, a dynamic interactive Web site that educates students on best borrowing practices and provides students with a simple interface for comparing and contrasting loans using trustworthy information.The first NYHELPs fixed-rate loans will be available for the spring term of the 2009-10 academic year.