I got award letter from NYU today.As i am permannet resident i qualified for federal loans.In my award letter there is written that i will receive something from HESC regarding how i will go for loans..but when? should i go to apply for loans or wait for HESC.pls tell. Also in my fafsa i didnt fill that i registered at selective service system (SSS) bcause i am 28 years old and i was over 26 when i entered usa.Now in my award letter they r saying u didnt register at SSS and if u qualify for exemption write a letter for reason....to whom?? and do i need to??
This is what found about this Selective service registration in my research...
Federal Loans are of 2 broad categories:
1) Federal Direct loans (known as FDL's)
2) Federal Family Education Loan (FFEL) also Called Federal Stafford loan.
FDL: these are given to US citizens or Eligibel non citizens , also called Federal Aid Grants which the borrower or student need not return the aid or grant to the Federal Government at any time in his life. To qualify for this you should have registered for Selective Services before your 26th Birthday.
FFEL: these are federal stafford loans available through various lenders that you have to repay to the lender, where the Federal goverment is taking the responsibility towards the interest payment while the borrower is attending the program. Six months after the borrower graduates will start repaying the loan on a monthly basis to the agreed terms and conditions on the MPN, Master Promissary Note.
You are not eligible for Federal Grant or Aid but Federal Stafford loan, because you are not registered for Selective services. Why ? you know the answer , you moved to US after your 26th Birthday. As a matter of fact, NYU mentioned that you are not eligible for Federal Aid Grants (FDL's).
Now what are you gonna do ?
Ignore Selective services registration , coz you passed that age limit.
Apply for FFEL's or Federal Stafford Loans which is in NYU case ( $15000 unsubsidized & $4250 subsidized loan) through the referred lenders by NYU in your financial aid letter.
Is this enough for attending NYU ? Definitely NO.
Now you have to apply for something called ALTERNATE LOAN which Citiassist calls , don't know about other lenders.
This alternate loan is the major chunk on which the interest rate is calculated from the second your loan is approved.
Lastly, federal government will pay interest on the subsidized loan only to the lender while the borrower is attending the program.
I hope this helps...
If i miss anything or misrepresented kindly correct me ....
akg