Final NYHELPs Regulation

The Notice of Adoption of the final NYHELPs regulation was published in the New York State Register on November 4, 2009. Click below to download your copy.
Additional Information


Introduction

The New York Higher Education Loan Program (NYHELPs) gives students and families a low-cost way to make up the difference between the cost of college and available financial aid.

NYHELPs requires that students exhaust all State, federal (other than PLUS), and institutional student aid to which they are entitled in order to apply for a loan.

Borrower Eligibility

A NYHELPs borrower must meet citizenship and NYS residency requirements and may be a:
  • Student: Enrolled or accepted for enrollment at least half time in an approved degree or professional certificate program at a degree-granting New York State Title IV-eligible college headquartered and with main campus in New York. A cosigner is required for all student borrowers.
  • Parent: A birth, step, or adoptive parent or spouse of an adoptive parent.
  • Legal Guardian: Appointed by a court as legal custodian of the student.
  • Sponsor: Over 21, meets other applicable credit criteria, and is applying for a loan for the benefit of an eligible student.

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

Interest Rates and Fees

Interest rates are subject to market conditions at the time of bond issuance. 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 school.

Interest Rates and Fees*
With Cosigner
Loan Repayment Type
Interest Rate
Borrower Default Fee
Principal & Interest
7.55%
4-6%
Interest Only
8.25%
5-7%
Deferred
8.75%
7%
Without Cosigner
Loan Repayment Type
Interest Rate
Borrower Default Fee
Principal & Interest
7.55%
4-8%
*A 0.25% interest rate reduction will be allowed for borrowers who elect to have monthly loan payments deducted electronically. The benefit will start when payments begin.

Benefit will be discontinued if borrower has one (1) insufficient fund, misses a payment or discontinues ACH (Automated Clearing House - a process for monthly payments from a bank account).

NYHELPs loans will be subject to borrower and college fees. The borrower fees may be added to the cost of attendance for the purpose of calculating the loan amount. The college fee may not be passed on to the borrower. The combined fees will vary, based on the underlying credit quality of the borrower and cosigner.

Key Features

  • Consumer Financial Literacy Education – NYHELPs borrowers will benefit from a user-friendly financial literacy education program. This Web-based program – covering money management, credit, and student loans – will help students make smart borrowing decisions, provide guidance on the pitfalls of credit card debt, and emphasize responsibility for repaying student loans. Successful completion of the course is required prior to receiving a NYHELPs loan.
  • Loan Search Through HESC Student Loan Marketplace – Borrowers gain access to NYHELPs loans through the HESC Student Loan Marketplace. With Marketplace, students have access to a sophisticated comparison and selection tool to choose among non-federal private loans with only one credit check, preserving their credit scores and ensuring they receive trustworthy information.

First Loans

The first NYHELPs fixed-rate loans will be available for the spring term of the 2009-10 academic year, up to maximum of $10,000.

Additional Information

If the Parent or Grad PLUS loan is not an option, NYHELPs offers a competitively priced private loan. Always consider grants, scholarships and federal loans before applying for a NYHELPs loan.

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