New York Higher Education Loan Program
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.
Public/Private Partnership for Fixed-Rate Loans
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.
For the 2011-12 academic year, approximately $15 million will be available for making NYHELPs loans.
Loan Amounts
Eligible students with eligible cosigners, eligible parents, or eligible sponsors are able to borrow:
- The annual maximum is the cost of attendance minus all other federal (excluding federal PLUS loans), State and institutional aid and private aid, or a limit based on the class year of the student, whichever is less.
- The limits are:
Freshmen - $10,000
Sophomores - $15,000
Juniors, seniors, and graduate students - $20,000
- 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
- The annual total minimum loan(s) amount is $2,000.
Interest Rates and Fees
NYHELPs 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 beginning with the spring term of the 2009-2010 academic year. The borrower fee for these loans will range from 4% to 8%. The estimated Annual Percentage Rate (APR) ranges from 8.78% to 11.19% depending on the loan repayment selected and the borrower's default fee.
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| Immediate Repayment | 7.55% | 4% (FICO score of 740 or higher) 5% (FICO score of 700 to 739) 6% (FICO score of 660 to 699) 4% without a cosigner (FICO score of 760 or higher) 8% without a cosigner (FICO score of 720 to 759) |
| Interest Only | 8.25% | 5% (FICO score of 740 or higher)
6% (FICO score of 700 to 739)
7% (FICO score of 660 to 699) |
| Full Deferment | 8.75% | 7% (FICO score of 660 or higher) |
*A 0.25% interest rate reduction will be allowed for borrowers who elect to have monthly loan payments deducted electronically via Automated Clearing House (ACH). ACH processes monthly consumer payments directly from a participating borrower’s bank account. The benefit will start when payments begin. This benefit will be discontinued if borrower has two (2) payments returned due to insufficient funds or discontinues ACH.
* *With a cosigner unless otherwise noted.
NYHELPs loans will be subject to borrower default fees. The borrower fee may be added to the cost of attendance for the purpose of calculating the loan amount.
A default reserve fund has been established to encourage lender participation and help ensure that students have continuous access to loans that would not otherwise be available to them. NYHELPs default reserves will be supported by State funds, borrower fees and a one-percent college fee, based on loan dollar volume, for each participating institution. The State of New York will be paying the one percent college fee on behalf of participating colleges in 2011-12. HESC and the State of New York Mortgage Agency (SONYMA) will administer the default reserve funds. This essential support enables favorable borrower interest rates and fees.
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.
Questions or Comments
Direct questions or comments to HESC at
NYHELPs@hesc.org or call toll-free 1-866-431-HESC (4372).
