Many or all companies we feature compensate us. Compensation and editorial research influence how products appear on a page. Student Loans New York Student Loans Updated Jun 28, 2023 5-min read Written by Jeff Gitlen, CEPF® Written by Jeff Gitlen, CEPF® Expertise: Student loans, personal loans, home loans, insurance, credit cards Jeff Gitlen, CEPF®, is the director of content operations at LendEDU. He graduated from the Alfred Lerner College of Business and Economics at the University of Delaware. Learn more about Jeff Gitlen, CEPF® Paying for college is a significant investment, often with both parents and students shouldering the expense. The average cost of college is increasingly expensive, so it’s crucial to know where to find financing. For New York state residents, consider all grant and scholarship options before applying for student loans. Grants and scholarships are free money and do not need to be repaid. Once you have considered all grants and scholarships, student loans can help you fill the gap. This guide will cover New York student loan options from the federal government and private lenders. On this page: Getting Student Loans for College in New YorkFederal Student Loans in New YorkPrivate Student Loans in New York Getting Student Loans for College in New York Student loans are secured through applications with the Department of Education on a federal or state level, or a financial institution operating in New York state. Students and parents should prepare for loan applications by gathering relevant information on academic achievements, community service work, and financial details before applying. >> Read More: Where to find state student loans In all cases, students are required to complete the Free Application for Federal Student Aid (FAFSA) – an application typically completed online. Through the FAFSA, the Department of Education determines several crucial factors in a student’s ability to pay for college, including the expected family contribution. With the expected contribution calculated, students can see the gap between the cost of attendance and the need for education financing. With that gap amount in mind, students and their parents can search for ideal funding sources. Federal Student Loans in New York Many students seek New York student loans to bridge the gap between available funds and total college costs. Federal and private student loans differ from scholarships and grants because the funds must be repaid. Federal loans comes with benefits not available through private lenders. These benefits include: Low rates. Interest rates are fixed and will be the same for every borrower whose loans are disbursed within a set period.Several repayment options. Borrowers can pause payments during hardship through deferment or forbearance. You can also take advantage of a number of income-driven repayment plans.Loan forgiveness. If you work for an eligible employer and participate in an income-driven repayment plan for long enough, you may be able to qualify for student loan forgiveness. Types of Federal Loans Here are some federal student loan options for New York state residents. Direct Subsidized Loans: These loans are available to undergraduate students with financial need. The government pays the interest on the loan while you’re in school at least half-time, for the first six months after you leave school, and during a period of deferment. There is no credit check for this loan.Direct Unsubsidized Loans: These loans are available to undergraduate and graduate students with or without financial need. Borrowers are responsible for paying the interest on this loan at all times. There is no credit check for this loan.PLUS Loans: There are two types of PLUS loans offered by the government, the Parent PLUS and Grad PLUS loan. The Parent PLUS loan is for parents of dependent undergraduate students. The Grad PLUS loan is for graduate or professional students. For both loan types, you must not have an adverse credit history. Private Student Loans in New York While federal student loans should always be considered before applying for private loans, there are borrowing limits. If you’ve met the federal borrowing limits, private lenders can help bridge the gap. Most private lenders rely on your credit to determine eligibility. If you don’t have an established credit history, you should consider adding a cosigner to your loan to help improve your application. Here are some highly-rated lenders offering private student loans in New York. College Ave View Rates Rates (APR): 4.44% – 15.99%Loan Amounts: $1,000 – 100% of the school-certified cost of attendanceRepayment Terms: 5, 8, 10, or 15 years College Ave is our top-rated private student loan lender and offers loans to undergraduates, graduates, and parents. Variables rates: 1.49% – 11.98%Fixed rates: 4.39% – 12.99%Rate reduction: 0.25% automatic payment discountFees: Late payment fee of 5% of the unpaid amount or $25, whichever is lessCosigner release: After 24 on-time paymentsIn-school repayment: Full principal & interest, interest-only, flat $25, or deferred paymentGrace period: 6 months, but can apply for up to 6 more months Earnest View Rates Rates (APR): 4.43% – 16.20%Loan Amounts: $1,000 – 100% of the school-certified cost of attendanceRepayment Terms: 5, 7, 10, 12, or 15 years Earnest offers student loans to undergraduates and graduates. Borrowers will receive support from Earnest’s Client Happiness team during the life of your loan. If you run into trouble repaying your loan, you have the option to skip a payment once per year. Variables rates: 2.74% – 11.44%Fixed rates: 4.39% – 12.78%Rate reduction: 0.25% automatic payment discountFees: NoneCosigner release: Not available unless you refinance with the companyIn-school repayment: Principal & interest, interest-only, fixed $25, or deferred paymentGrace period: 9 months Sallie Mae View Rates Rates (APR): 4.50% – 16.20%Loan Amounts: $1,000 – 100% of the school-certified cost of attendanceRepayment Terms: 5 – 15 years Sallie Mae offers student loans to undergraduates and graduates. It also offers a loan for career training. All borrowers receive four free months of Chegg® to help with their studies. Cosigners can be released from the loan after the borrower makes just 12 consecutive, on-time monthly payments. Here’s some other information about its undergraduate loan: Variables rates: 1.13% – 11.23% APRFixed rates: 4.25% – 12.59% APRRate reduction: 0.25% automatic payment discountFees: Late payment feeCosigner release: After 12 consecutive, on-time paymentsIn-school repayment: Interest-only, fixed, or deferred paymentGrace period: 6 months Ascent View Rates Rates (APR): 9.46% – 15.88%Loan Amounts: $2,001 – $200,000Repayment Terms: 5, 7, 10, 12, or 15 years The information above is for the Ascent Non-Cosigned Credit-Based and Future Income-Based Loans. Ascent offers cosigned and non-cosigned student loans for undergraduates and graduates. If you are unable to add a cosigner to your loan and don’t have an established credit history, a non-cosigned loan through Ascent can be a good option. You can check your prequalified rates without affecting your credit score. Once you graduate, you can earn a 1% cash back reward. Variable rates: 3.17% – 13.92%Fixed rates: 3.98% – 14.92%Rate reduction: 0.25% automatic payment discountFees: NoneCosigner release: After 12 on-time paymentsIn-school repayment: Interest-only, $25 flat, or deferred paymentGrace period: 9 months If you’d like to compare other options, you can check out our guides to the best private student loans and student loans without a cosigner.