This guide outlines the steps for the undergraduate student federal direct loan process. It also includes resources to help you navigate the student loan process and the CUNYfirst system.
(NOTE: Graduate students should review Graduate Student Loan guide)
Click here to jump to How to Apply for Federal Direct Subsidized/Unsubsidized Loan
Introduction
These loans have a loan origination fee which is deducted form the loan at the time of disbursement. The subsidized loan is a need based loan for which accrued interest is paid by the federal government while you are enrolled in college (for at least six credits). Interest on this type of loan therefore does not build right away. The unsubsidized loan, however, accrues interest from the time of disbursement.
The Parent PLUS loan is available only to parents of dependent undergraduate students and requires the parent to pass a credit check . It has a higher interest rate and loan origination fee that the subsidized or unsubsidized loan.
IMPORTANT Note about Borrowing
The Brooklyn College Office of Financial Aid recommends that you limit borrowing to what you need! We strongly encourage you to schedule an appointment with a financial aid advisor for financial aid planning if you have never borrowed from the federal direct loan or alternative programs before.
Who is offered a Federal Direct Loan?
A)Filed a FAFSA for the relevant aid year
B) Will have an outstanding projected balance of $500 or more after other projected aid (grants such as TAP, PELL SEOG, Vallone etc) covering direct costs is considered
C) Are in an eligible undergraduate degree program
How to request a Federal Direct Loan if one was not offered?
What if I already have a Federal Direct Loan and want to change the amount?
How Much Can I Borrow?
Annual Loan Limits for Direct Subsidized Loans and Direct Unsubsidized Loans
| Student Type | Dependent Undergraduate Students | Independent Undergraduate Students |
|---|---|---|
| First Year (freshman) | $5,500 (maximum $3,500 subsidized) | $9,500 (maximum $3,500 subsidized) |
| Second Year (sophomore) | $6,500 (maximum $4,500 subsidized) | $10,500 (maximum $4,500 subsidized) |
| Third Year (junior) and Beyond | $7,500 (maximum $5,500 subsidized) | $12,500 (maximum $5,500 subsidized) |
Aggregate Loan Limits: Maximum Total Outstanding Loan Debt
| Student Type | Dependent Undergraduate Students | Independent Undergraduate Students |
|---|---|---|
| Undergraduate | $31,000 (maximum $23,000 subsidized) | $57,500 (maximum $23,000 subsidized) |
Loan Proration Requirement
Federal regulations require that a direct loan be prorated when a student is enrolled in a program that is one academic year or more in length, but is in a remaining period of study that is shorter than a full academic year. As such students who graduate in the summer session or fall term will have their loans prorated based on the formula below.
Loan Proration Formula
How to Apply for Federal Direct Subsidized/Unsubsidized Loan
Step 1 – Complete the FAFSA
Before you can be considered for a Federal Direct Loan you must first file and submit the FAFSA to determine that you meet the basic eligibility criteria for federal student financial aid programs. The FAFSA you file should reflect the academic year that you are planning to attend. For example if you are planning to enroll in the Fall 2025 and spring 2026 terms then you should file the 2025-2026 FAFSA.
Step 2 – Review Your CUNYfirst Financial Aid “TO-DO LIST” Items
If your FAFSA requires additional documentation, CUNYfirst will alert you by listing items on the Tasks tile in your Student Center. You must complete these items before any accepted or packaged loan will be able to disburse to you. To view your “To-Do List” log onto your CUNYfirst account at https://home.cunyfirst.cuny.edu.
NOTE: As long as the to do list item continues to display to you the process is incomplete and the loan will not disburse to you.
Step 3 – Review Your COST OF ATTENDANCE (Financial Aid Budget)
Your Cost of Attendance (which includes direct and indirect costs of your education) is used to determine the maximum amount of financial aid (grants, federal work-study, scholarships and loans) you may receive during an academic year. It is important to review your cost of attendance before borrowing so that you understand borrowing limitations. You cannot borrow or receive aid that is in excess of your Cost Of Attendance.
View your Cost of Attendance:
- Access the Financial Aid tile in your CUNYfirst Student Center.
- Confirm the appropriate aid year in the top left of the page (use the Change button if the current aid year is not the default). Note: the screenshot example below shows costs for the 2021-2022 year.
- Under the “Financial Aid Summary menu” on the sidebar select “Cost of Attendance”.
Step 4 – Enroll For Courses (at least 6 Credits)
You must be matriculated in an eligible undergraduate degree program and enroll for at least 6 credits of undergraduate coursework in the term(s) for which you are seeking the loan to be eligible for a loan disbursement.
Undergraduate programs ineligible for Federal Student Loans are: Non-Degree and Certificate programs not on this list.
Step 5 – Complete an Entrance Counseling Session and Sign your eMPN,
Entrance Counseling
If this is your first time borrowing a Federal Direct Student Loan at Brooklyn College, you must complete the below requirements before your loan will disburse to you:
Using your FSA ID (studentaid.gov account), sign into the Federal Student Aid portal to complete the ENTRANCE COUNSELING SESSION. Be sure to select CUNY Brooklyn College as a school to notify. If you have already completed one in the past you only need to change the school code to Brooklyn College.
eMPN- Promissory Note
On the Federal Student Aid portal sign the LOAN MASTER PROMISSORY NOTE (MPN) for undergraduate students. If you have signed an MPN for the particular loan type within the last decade then you would not need to sign a new one. If you are unsure of how long it has been since you last signed one it is recommended to sign a new one to avoid a disbursement delay due to an expiring promissory note.
NOTE: Make sure you are signing the correct type of promissory note for the type of loan you are borrowing. Other types of promissory notes for other types of loans are available on that webpage.
Financial Aid TV- Loan Entrance and Promissory Note Video
Step 6A – Accept, Reduce, or Decline your Subsidized and/or Unsubsidized Loan on CUNYfirst
Skip this step if you do not have an offered loan on your financial aid package.
The offered loan will not disburse if it has not been accepted or if the steps above have not been completed.
The loan is offered as a fall/spring loan. This means that the loan amount will be divided evenly between the fall and spring terms. Depending on your tuition charges this may not be sufficient to cover your full balance.
You can accept, reduce, and then accept, or decline the annual loan award by following the steps outlined in the CUNYfirst Student Financial Aid Guide on or Information Guides page (refer to pages 11-12 in the guide).
NOTE: If you are seeking to borrow a semester only loan you must decline the offered loan and use the Federal Direct Loan Change Form to request a semester only loan.
Step 6B – Submit a Federal Direct Loan Request form in Dynamics Forms
To request the loan submit an initial loan request form in the Dynamic Forms system.
NOTE: the loan will not disburse if the steps above have not been completed.
Parent Plus Loan
Parents of dependent students may borrow to assist their in meeting their educational costs by submitting a Parent PLUS loan form in Dynamic Forms. The Parent PLUS loan allows parents to borrow up to the full annual cost of attendance (COA) minus other financial aid received (scholarships, federal student loans, private loans etc.).
A credit check will be performed by the U.S. Department of Education during the origination process to determine parental credit eligibility for the Parent PLUS loan. The PLUS loan has a higher loan fee and interest rate.
The student must be enrolled for at least 6 credits.
A Parent who applies for a PLUS loan must:
- Meet Federal Basic Eligibility Criteria
- Sign the Parent PLUS Master Promissory Note (MPN) at studentaid.gov
- Complete and submit their portion of the electronic Parent Plus Loan Dynamic Form
- Pass the credit check (if you fail the credit check you may either obtain an endorser or appeal the decision. If you fail the credit check you must also complete PLUS Credit counseling even if you obtain an endorser or appeal the decision).
As the parent is the borrower of the loan the loan proceeds are only issued to the parent directly. Parent PLUS loan are not disbursed or refunded to students.
Pending Aid in CUNYfirst
After you have accepted or been packaged with your loan, and completed all the necessary steps above allow a 3-5 business days for the loan to authorize. Once authorized, the loan will show on your CUNYfirst Student Center under the “Financial Account” tile as pending financial aid. Navigate to “Account Balance” on the menu sidebar to see your total charges, pending financial aid and how much you still owe (if anything). Pending financial aid means that it is approved but pending to disburse on the next available disbursement date.
For detailed steps on how to view pending financial aid refer to the CUNYfirst Student Financial Aid guide.
Loan Disclosure and Disbursement
You will receive an official disclosure statement via email from the Direct Loan Servicing Center confirming your approved award and anticipated disbursement dates. Federal loans are issued in two separate disbursements. Initial Disbursement dates for the loan are indicated below. Disbursements occur each Monday (excepting legal holidays) following the initial disbursement date. Any disbursement that is in excess of the tuition and fees liability will refund on the Friday after the disbursement date via check or direct deposit.
Fall 2025 – September 2nd
Spring 2026 – February 2nd
Additional Resources
Federal Direct Loan Program Interest Rates and Loan Origination Fees
View your Federal Student Loan History
Federal Direct Loan Exit Counseling
Financial Aid TV – Loan Videos
Financial Aid TV Videos: Loan Overview
Financial Aid TV Videos: Loan Programs
Financial Aid TV Videos: Loan Repayment
Need More Help?
Review our Financial Aid Services page for more information on how to speak with a representative or schedule a financial aid planning session with a financial aid advisor.
General email inquiries may be sent to finaid@brooklyn.cuny.edu
General inquires by phone: Student Financial Services Call Center (718)-951-5051