Need Based Federal Loans

Federal Perkins Loan

Students who are offered and accept a Federal Perkins Loan must complete an online Master Promissory Note (MPN) and complete the on line Entrance Counseling. Once a Federal Perkins Loan is accepted instructions will be provided to the student to complete the on line requirements.  The completed Master Promissory Note will be used for all Federal Perkins Loans processed by SUNY Potsdam over multiple academic years.

  • Need-based.
  • Fixed interest rate of 5 percent.
  • Interest-free while enrolled in at least 6 credit hours.
  • Limited number of awards available based on annual allocation of funds.
  • Repayment begins nine months after leaving school or if you drop below 6 credit hours.
  • Annual maximum per federal regulations is $5,500 for Undergraduate borrowers & $8,000 for Graduate borrowers.


William D. Ford Federal Direct Loans:


Student borrowers will electronically sign a Master Promissory Note (MPN). The MPN can be used to make one or more loans for one or more academic years at the same school. This can be done online at: www.studentloans.gov. It will be used for all your loans over multiple academic years at the same school. A completed Promissory Note enables the Financial Aid Office to request the disbursement of funds from the United States Department of Education. When planning loan financing, students should expect a 1 percent origination and insurance fee deduction in funds.

Federal Direct Subsidized Stafford Loan:

  • Need-based.
  • Fixed interest rate of 3.4% for Undergraduate borrowers for loans disbursed on or after July 1, 2011 and before July 1, 2012.
  • Fixed interest rate of 6.8% for Undergraduate borrowers for loans disbursed on or after July 1, 2012.
  • Fixed interest rate of 6.8% for Graduate borrowers for loan periods that start prior to July 1, 2012 (subsidized loan funding is not available to graduate students for loan periods that begin after July 1, 2012).
  • Interest-free while enrolled in at least 6 credit hours.
  • Repayment begins six months after leaving college or if you drop below 6 credit hours.


The maximum yearly loan limits are:

  • $3,500     freshmen
  • $4,500     sophomores
  • $5,500     juniors/seniors
  • $8,500     graduate students (subsidized loan funding is not available to graduate students for loan periods that begin after July 1, 2012)