Degree Programs

Federal Stafford Loans are available as subsidized or unsubsidized loans. To qualify for a subsidized loan, the student must demonstrate financial need. The federal government pays the interest on the subsidized loan while the student is enrolled; the student begins repaying the loan principal and interest six months after ceasing to be enrolled. A student may qualify for an unsubsidized loan regardless of need. The student is responsible for paying interest on the unsubsidized loan while enrolled. Interest payments begin accruing 60 days after the loan is disbursed. As with the subsidized loan, repayment on the loan principal begins six months after the student ceases to be enrolled. Payments on interest and principal of an unsubsidized loan may be deferred, but interest will accrue and compound. The federal processor requires that a student first apply for a subsidized loan before applying for an unsubsidized loan. A student may borrow up to $8,500 annually through the basic Federal Stafford Loan program. A graduate student may be eligible for a supplemental, unsubsidized loan (in addition to a basic subsidized or unsubsidized loan) for an amount up to $12,000 annually (over and above the $8,500 eligibility level of the basic Stafford program), provided that the total amount of assistance does not exceed the cost of the graduate program. An origination fee of 3 percent (and possibly a 1 percent loan warranty fee) is deducted from the proceeds of all loans.

The procedures for filing for a loan will be explained when the student is notified about eligibility. As with all financial aid requests, the student must submit the FAFSA to the federal processor. (Even though an unsubsidized loan does not require analysis of need, the student must still submit the FAFSA.)

Loans are disbursed in two equal payments, one each semester. Electronic disbursements are credited to a student’s account when they are received. Check disbursements are sent to the Student Accounts Office in Annandale-on-Hudson; the Student Accounts Office forwards the check to the Associate Dean for Academic Programs at the BGC. The student must sign a loan check before the loan can be credited to a personal account. If the check is not signed within a designated period, the Student Accounts Office is obliged to return it to the lender for cancellation. In such a case, the student becomes responsible for the entire account balance and is charged a $100 penalty fee
for late payment and duplication of the loan disbursement procedure.

The amount of a loan typically includes an allowance for expenses,
in addition to program fees. If the loans create a credit balance in the
student’s account after the amount due the program has been paid,
the amount is refunded directly to the student within 14 days of the
date on which the balance was created, or within 14 days of the first
day of classes of the payment period, whichever is later. The student
should not expect to receive this refund before the end of the 14-day
processing period; hand checks are not issued. A student who chooses
to leave the excess funds in the account as a credit toward a future
term’s fees must send written notice of this choice to the Student
Accounts Office.