Frequently Asked Questions - NYHELPs
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What is NYHELPs?
NYHELPs is a
state-sponsored, supplemental loan program administered by New York State. It is available to eligible borrowers who have maximized all of the State, federal and institutional student financial aid for which they were eligible for the current year, yet still need more funding to attend college. (Note: Students/parents are not required to apply for a PLUS loan.)
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What are the current interest rates on NYHELPs?
Currently, the interest rates on NYHELPs loans are
fixed (7.55%, 8.25%, and 8.75%) based on the repayment plan available to you. In order to see what is available to you, you must begin the process and wait until products are returned.
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How can I find out more about NYHELPs?
You can find answers to many questions by
clicking here for NYHELPs.
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Where do I apply for a NYHELPs loan?
Apply at www.hesc.com/NYHELPs. Click on the yellow "Apply Now" button.
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If I apply for a NYHELPs loan but determine that I no longer need it and cancel the loan, will it affect my ability to apply for NYHELPs in the future?
Cancellation of a NYHELPs loan will not affect your ability to borrow in the future.
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Are the loans made through Marketplace and NYHELPs based on the borrower's and cosigner's credit score?
Yes, for the purpose of NYHELPs, loans are made based on the non-student borrower's and cosigner's credit score as well as other credit and program factors. In addition, the number of loans cosigned by the same individual will have an effect on that individual's credit score.
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If a NYHELPs borrower has not reached their annual loan limit and is interested in borrowing more money, a new application must be initiated. Will a new credit check be necessary?
A new credit check will be necessary if the new application is completed 45 days after the initial credit check. Otherwise, a new credit check will not be necessary.
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Are non--student borrowers allowed to submit a cosigner for a NYHELPs loan?
Non-student borrowers may utilize a cosigner, and would select the cosigner as part of the application process for a NYHELPs loan.
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Is the requirement to participate in "Financial Literacy Education" a one-time requirement per borrower?
All NYHELPs borrowers are required to complete Financial Literacy Education each time the borrower applies for a NYHELPs loan.
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Are cosigners required to complete the financial literacy requirement?
Cosigners are not required to complete the financial literacy requirement.
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How long does the entire application process take?
Processing time may vary based on the amount of time it takes for you and the cosigner to complete the required information. You may check the status of your account throughout the process by logging in on the HESC Web site and using your USER ID and PIN.
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Why is there a difference in the published interest rates for NYHELPs (7.55%, 8.25%, 8.75%) and the "APR" for the loan products that were returned to me?
When you select your terms of repayment, the interest rate you will be charged is displayed with the loan product. However, there is also a borrower fee that will be assessed at the time the loan is made, ranging from 4% to 8%, depending on your or your cosigner's credit score and repayment option selected. The Annual Percentage Rate or APR is a disclosure of the cost (the interest rate and the borrower fee) of borrowing the loan on a yearly basis, expressed as a percentage.
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What is the borrower default fee?
The borrower default fee is an up front fee charged to all borrowers and is used to offset the costs associated with all loan defaults. The amount of the borrower default fee charged depends upon the repayment terms selected and the credit scores of the borrower or cosigner.
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Will I receive a refund if the loan I request exceeds tuition and other costs owed to the college?
Yes, the money is disbursed to your college first and then any excess will be returned to you by the college to pay for other expenditures needed while you are attending college. However, in no case will you receive loan funds exceeding the cost of attendance (includes tuition, fees, books, room, board, etc.) as certified by your college.
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Can a parent apply for loans through the NYHELPs program?
Yes, an eligible sponsor or parent, who is a New York State resident, can borrow a loan on behalf of a student who is attending a participating college in New York State. The parent does not have to take out a federal PLUS loan for the student before applying for a NYHELPs loan. Applications for a NYHELPs loan may be made by going to hesc.com/nyhelps, selecting "Apply Now" and following the instructions.
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Which colleges participate in NYHELPs?
There is a list of participating colleges located on the HESC Web site at
www.hesc.com/NYHELPs/Participating_Colleges. The college must be located in New York State in order to participate.
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If a school is a New York State school, why are they not required to participate in the NYHELPs program?
All eligible colleges in New York State have the option to participate, but it is not a requirement. There are many factors that schools must consider before they decide to participate in the program and those reasons may be different for each school. A drop down box listing all of the participating colleges can be found on the NYHELPs web site: hesc.com/nyhelps.
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What do I do if my college does not participate in the NYHELPs program?
If your college is not currently participating in the NYHELPs program, you can contact the Financial Aid Office at your college and ask if they intend to participate in the program in the near future. If you tried to apply for another loan program through Marketplace and your college doesn't participate in that loan program, you may contact your Financial Aid Office to discuss what other types of programs may be available to you.
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Can the borrower and cosigner use the same HESC PIN?
No. The HESC Student Loan Marketplace is a secure site and each user will need his or her own HESC PIN to continue with the application. Borrowers and cosigners cannot share a HESC PIN.
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Is it a requirement that I be a New York State resident in order to apply for a NYHELPs loan?
Yes. The NYHELPs program was developed for New York State residents that are attending participating colleges in New York State. Any borrower must be a resident of New York for at least one year to be eligible to borrow a NYHELPs loan. A student is not required to be a New York resident if a parent or sponsor is borrowing on his/her behalf, but the parent or sponsor must be a New York resident. A cosigner is also required to be a New York resident.
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I would like to use two cosigners. Is that possible?
For student borrowers, HESC Student Loan Marketplace will ask the cosigner if they wish to add another cosigner, which may favorably affect the debt to income ratio and allow the loan to process. It is required that the second cosigner physically live at the address of the first cosigner (for example-husband and wife). The second cosigner will not be subject to having a credit check.
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I am in school full-time and having trouble making payments on my NYHELPs loan(s). Who can I call for assistance?
You should contact HESC's Delinquency Resolution Unit at 1-866-312-9449 to inquire about what options are available to you. You can also contact Firstmark Services at 1-888-295-0917. After you call, please remember to stay in contact with HESC and Firstmark for the best possible outcome for your individual situation.
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Does the NYHELPs program offer deferment and grace period options for borrowers?
Yes, depending on which repayment option was selected at the time of application. There is a six month grace period for deferred loans, where the principal, or principal and interest, is deferred while the student is enrolled at a Title IV eligible college at least half time. All other loans enter repayment status 60 days after the final disbursement is made on the loan. Borrowers who are in an active military service status are eligible to have their loan payments deferred.
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If I select either the Interest Only or Full Deferment repayment option, when will my loan enter full repayment of principal and interest?
Interest Only and Full Deferment loans enter full repayment of principal and interest after the grace period following graduation, withdrawal, less than half-time enrollment or transfer to a non-Title IV school.
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If I have a fraud alert noted on my credit report, will this affect my eligibility for a NYHELPs loan? If so, what can I do to have it removed?
A fraud alert on your credit report may affect your ability to obtain a NYHELPs loan. You should contact Credco at 1-800-986-4343 to ask them how you should proceed in order to have the alert removed so that your eligibility for loans is not affected.
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