HESC Colleague NewsletterWinter 2009  

In the Spotlight: NYHELPs Program Launches

Jennifer Dwire

The HESC Student Loan Marketplace begins accepting applications for the NYHELPs program on Monday, December 21, 2009.


At the core of NYHELPs is a public/private partnership that leverages lender funds to make fixed-rate student loans on behalf of students attending eligible, participating New York colleges.

The New York Higher Education Loan Program (NYHELPs) is a private, credit-based, college-certified loan program for undergraduate and graduate students and their parents or nonparent sponsors. It provides a solution for students who still need funds after other types of state, federal, and institutional aid have been exhausted. The student must be enrolled at least half time, making satisfactory academic progress in a degree or professional certificate program.

Financial Literacy Education is Integral

The Program requires that borrowers complete a comprehensive Web-based financial literacy education program. The e-learning component of the Program helps students learn how to make smart borrowing decisions, provides guidance on the pitfalls of debt, and emphasizes responsibility for paying back their student loans.

Interest Rates and Fees

Borrowers will receive a fixed interest rate of 7.55%, 8.25%, or 8.75% on NYHELPs loans of up to $10,000 per academic year beginning with the spring term of the 2009-2010 academic year. The borrower fee for these loans will range from 4% to 8%. This will result in an estimated Annual Percentage Rate (APR) ranging from 8.5% to 10.5% depending on the credit rating of the borrower or his/her cosigner, the loan repayment option selected, and the student’s year in college.

Loan Amounts

Eligible students with eligible cosigners, eligible parents, or eligible sponsors will be able to borrow:

Annual maximum loan amounts of the lesser of:
Cost of attendance minus all other federal (excluding federal PLUS loans) and State financial aid, institutional aid, and private aid, or $10,000 per academic year

Aggregate maximum loan amounts of:
  • $20,000 for undergraduates at 2-year institutions
  • $50,000 for undergraduates at 4-year institutions
  • $70,000 for undergraduate and graduate study combined

More Details
Click here for additional details on the NYHELPs.