Paying for College

TYPES OF AID

• Grants and scholarships: Free money - you do not have to repay and are usually based on financial need.
• Federal Work-Study: Earned money - allows you to work part-time to earn money for college expenses.
• Tuition Payment Plan: Interest-free plan with Nelnet - your tuition is divided into six (6) lower monthly payments.
  
• Loans: Borrowed money - you do have to repay with interest

Review the types of loans that are available so that you can borrow wisely.

Federal Student Loans
These loans are funded by the federal government—U.S. Department of Education. Just like any other loan, these loans must be repaid with interest. If you need to borrow money to pay for college, start with federal student loans.

Need-Based Loans

• Federal Perkins Loans are awarded by LaGuardia to students with the highest need.
• Federal Direct Subsidized Loans are interest-free while you're in college and have a borrowing limit that increases for each year of school you complete.

Non-Need-Based Loans

• Federal Direct Unsubsidized Loans charge interest, but allow you to add the interest fees to the amount you borrow until after you graduate. However, this means you’ll end up owing more.
• Federal Direct PLUS Loans allow parents to borrow the total cost of college, minus any financial aid received.

How to apply for a federal loan:

1. Complete the Free Application for Federal Student Aid (FAFSA).
2. Complete the Direct Loan application via CUNYfirst student services center.
3. Complete Loan Entrance Counseling Session and a Master Promissory Note (MPN) online at www.studentloans.gov.

Alternative/Private Loans
These loans are nonfederal loans, made by a lender such as a bank, credit union, state agency, or a school. Only consider a private loan if you have exhausted all other sources of funding such as federal and state aid. LaGuardia does not recommend any specific lender/programs. Please contact the lender of your choice for details about their program and application process.

Students and parents interested in an private loan should carefully research alternative/private loans to determine which program may serve their needs best. Many private student loans require payments while you are still in school. Loan costs, interest rates, fees, and terms of the private loan, vary widely between programs and lenders. The borrower’s credit history may be reviewed and some lenders may require a loan co-signer. Learn more.

Emergency Loans
We understand that emergencies happen that can impact your education. LaGuardia offers Emergency Loans which is an advance against anticipated financial aid for emergency cases. Emergency cases may include eviction notices or utility turn-off notices. Students may apply for one short-term emergency loan up to $500 per semester based on anticipated financial aid.

How to apply for an Emergency Loan:
Meet with a financial aid advisor in room C-107. Please bring documentation indicating need of the emergency loan.

Loan Resources
Federal vs. Private Loans
Interest Rates on Federal Loans
Avoiding Scams
Loan Repayment
Direct Consolidation Loan
Loan Forgiveness Program

PREPARE

• Student & Parent’s 2015 Federal Income Tax Returns (1040, 1040A, 1040EZ, W-2, and other records of money earned)
• Records of untaxed income (Social Security benefits, food stamps (SNAP), etc., if applicable) valid email address
• Find or create your Federal Student Aid (FSA ID).

APPLY

• Use the IRS Data Retrieval Tool to access the income tax information, if applicable. It is the best way to ensure the FAFSA has accurate income information. 
  FAFSA CODE: 010051  TAP CODE:1403
  
• After you complete your FAFSA, apply for New York State Aid (TAP). 
  
• Need help? Bring your documents to the Student Financial Services Resource Center in C-Building, room C-109. Questions? Call us! 718-482-7218. 

AFTER YOU APPLY

FINANCIAL AID TIPS

• Complete your FAFSA in October each year to get the most money available.
• Prospective students should apply for admission and financial aid at the same time. 
  
• Register for 12 or more credits (classes in session I and II) to get the most financial aid and graduate sooner. 
  
• If you think you may need to withdraw from a class, get ahead of the game—speak with an advisor on your Advising Team about your options. Failure to attend class/withdrawal from class can negatively impact the amount of your financial aid. You may also risk future eligibility and be subject to repayment.
• Review your major’s requirements to understand the courses needed for your major. Take your core courses as early as possible to avoid accumulating too many other credits that do not count toward your major and financial aid may not be available to cover.

STUDENT FINANCIAL SERVICES RESOURCE CENTER