Lenders
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.
| When Students Are Ready To Apply Send Them To ... |
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| Click here to apply for a NYHELPs Loan |
| NYHELPs Resources for Colleges |
| Guidance Regarding NYHELPs and SLATE |
| NYHELPs Law |
| Final NYHELPs Regulation |
| Participating Colleges |
| NYHELPs Materials |
| College Manual |
| Web Page for Students and Families |
| College Administrator Fact Sheet |
| NYHELPs Questions and Answers |
| Students, Borrowers and Families Fact Sheet |
| NYHELPs in the News |
| Governor's Press Release Announcing Final Interest Rates for NYHELPS |
| Governor's Press Release Announcing NYHELPs |
| HESC Press Release Announcing the Enactment of NYHELPs |
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.For the spring semester of the 2009-10 academic year, approximately $95.3 million will be available for making NYHELPs loans.
Loan Amounts
Eligible students with eligible cosigners, eligible parents, or eligible sponsors are able to borrow:- The annual maximum is the cost of attendance minus all other federal (excluding federal PLUS loans), State and institutional aid and private aid, or a limit based on the class year of the student, whichever is less.*
- The limits are:
Freshmen - $10,000
Sophomores - $15,000
Juniors, seniors, and graduate students - $20,000
- The limits are:
- 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
- The annual minimum is $2,000.
Interest Rates and Fees
NYHELPs 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 beginning with the spring term of the 2009-2010 academic year. The borrower fee for these loans will range from 4% to 8%. With a ten year repayment term, this will result in an estimated Annual Percentage Rate (APR) ranging from 8.78% to 11.19% depending on the credit rating of the borrower or his/her cosigner, the loan repayment option selected, and the student’s year in college.| Interest Rates and Fees* | ||
|---|---|---|
| With Cosigner | ||
Loan Repayment Type | Interest Rate | Borrower Default Fee |
| Principal & Interest | 7.55% | 4-6% (w/Cosigner) 4% or 8% (Parent/Sponsor w/o Cosigner) depending on FICO |
| Interest Only | 8.25% | 5-7% |
| Deferred | 8.75% | 7% |
NYHELPs loans will be subject to borrower default fees. The borrower fee may be added to the cost of attendance for the purpose of calculating the loan amount.
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.