NYAA

Financial Aid

Federal Student Loan Debt Relief

Federal Student Aid

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Am I eligible for this student debt relief?

We’re currently working to finalize new regulations that include who may receive loan forgiveness. Note that the final regulations would apply only to borrowers with loans that have entered repayment. Our proposed regulations would authorize the Secretary of Education to provide partial or full debt relief to borrowers in the following circumstances:

    1. Borrowers who owe more than they did at the start of repayment:
      • Your current balance on an unconsolidated Direct Loan, ED-held Federal Family Education Loan (FFEL) Program loan*, or ED-held Perkins loan* is greater than the balance of that loan when it entered repayment.
      • Your current balance on a consolidation loan is greater than the balance of the loans included in your consolidation loan when the original loans entered repayment.
    1. Borrowers who first entered repayment many years ago: You have only undergraduate loans, and at least one of those loans entered repayment on or before July 1, 2005. Or, you have at least one graduate loan, and at least one of your undergraduate or graduate loans entered repayment on or before July 1, 2000.
    1. Borrowers who are otherwise eligible for loan forgiveness but have not yet applied: You haven’t enrolled in an income-driven repayment (IDR) plan but would be eligible for relief. Or you would be eligible for closed school discharge or other types of forgiveness opportunities but haven’t successfully applied for that relief.
  1. Borrowers who enrolled in low-financial-value programs:
      • You attended an institution that failed to provide sufficient financial value.

All borrowers who have at least one ED-held loan, regardless of the status of their loans, are receiving an email explaining this potential debt relief and how to opt out of it.

*Please note that this opt-out is only for loans held by ED. It does not apply to commercially managed FFEL loans or Perkins Loans held by institutions.

‘Entered Repayment’ Explained

Only borrowers who have entered repayment on at least one of their loans when the debt relief is applied would be eligible for forgiveness on the loan(s) in repayment.

  • For subsidized and unsubsidized loans, borrowers are considered to have entered repayment at the end of the loan grace period, typically a six-month period after borrowers leave school before repayment begins.

  • For both PLUS loans for parents and PLUS loans for graduate or professional students, borrowers are considered to have entered repayment when the loan is fully disbursed.

What will happen for borrowers who receive debt relief?

If the regulations are implemented as proposed, they would authorize the Secretary of Education to:

    • Cancel some or all debt for federal student loan borrowers who owe more than they did at the start of repayment in one of the following two ways:
      • Cancel up to $20,000 of the amount by which a borrower’s current balance is greater than the balance on their federal student loans upon entering repayment. All borrowers would be eligible for this debt cancellation, either up to the amount by which the borrower’s current balance exceeds the principal and interest balance when the loans entered repayment or $20,000, whichever is less. For borrowers with consolidation loans, we would compare the initial balances of the underlying loans included in the consolidation loan to the current balance of the consolidation loan.
      • For borrowers enrolled in an IDR plan and who meet the income requirement, cancel all principal and interest above the principal and interest balance at the time their federal student loans entered repayment. Borrowers would be eligible if they earn $120,000 or less per year individually or as married filing separately, $180,000 or less per year as head of household, or $240,000 or less per year as married borrowers who file joint taxes or a qualifying surviving spouse. For borrowers with consolidation loans, we would compare the initial balances of the underlying loans included in the consolidation loan to the current balance of the consolidation loan.
    • Cancel some or all debt for federal student loan borrowers who would otherwise be eligible for loan forgiveness under IDR plans but are not enrolled, or who would be eligible for closed school discharge or other types of forgiveness opportunities but haven’t successfully applied for that relief.
    • Cancel some or all debt for federal student loan borrowers who entered repayment a long time ago. Borrowers with only undergraduate debt would qualify for forgiveness if they entered repayment on or before July 1, 2005, and borrowers with graduate school debt or a mix undergraduate and graduate debt would qualify for forgiveness if they entered repayment on or before July 1, 2000. For borrowers with consolidation loans, we would check when the underlying loans initially entered repayment (not when the consolidation loan entered repayment). Loans that meet these criteria could be fully forgiven.
    • Cancel some or all debt for student loan borrowers who attended schools that lost eligibility, or closed while at risk of losing eligibility, to give out federal student loans, or that had programs that provided low financial value. This includes when
      • a school fails to meet standards based on student outcomes, including when schools close before a program review, investigation, or other action was resolved; or
      • a non-degree program has closed because it failed to meet gainful employment (GE) requirements, which require programs to result in sufficient financial value for students. Programs fail GE when borrowers have unaffordable debts or make too little earnings, based on measures set by ED.
    • Loans taken out to attend these schools or programs during the periods described above could be fully forgiven.

You also may separately qualify for one of our existing student loan forgiveness programs.

Office of Financial Aid
Garden Level 105

Anna Skutelnikova
Director of Financial Aid
212.842.5128
fa@nyaa.edu
Office Hours: 12:00pm to 6:00pm

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Applying for Financial Aid

Federal Application Requirements and Procedures

Students (not international students) who wish to apply for Student Loans and Federal Work Study Program are required to complete the Free Application for Federal Student Aid (FAFSA). The college code for New York Academy of Art is 026001. The FAFSA is available online at studentaid.gov.

MFA and CFA students are considered independent for federal student aid purposes.

Requirements for Federal Student Aid

  • Must be accepted into a New York Academy of Art MFA or CFA program.
  • Must have a high school diploma or its recognized equivalent.
  • Must be making satisfactory academic progress toward their degree.
  • Must be enrolled at least half-time (six credits) to receive aid from Federal Direct Loan programs (unsubsidized, or PLUS).
  • Must not be incarcerated.
  • Must not be in default on a prior federal student loan.
  • Must be a U.S. citizen or permanent resident or other eligible noncitizen.
  • Must have a Social Security number.

If you intend on taking Federal Loans you will need to complete an Entrance Interview and a Master Promissory Note.

Complete the online Loan Entrance Interview- An Entrance Interview is a counseling session which is designed to help you better understand your obligation as a borrower and provides other useful information on the loan process.  The Entrance Interviews are required. Please go to https://studentaid.gov/ website to complete your Entrance Interview.

Complete the online Master Promissory Note(s) – MPN (there is one promissory note for the Stafford loans and a separate promissory note for Graduate Plus). You can complete the MPN online at the https://studentaid.gov/ website. The MPN is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the Department of Education. It also explains the terms and conditions of your loan(s).

Please note that all Direct Plus Loan borrowers are subject to a credit check.  Direct Plus Loan borrowers must have an acceptable credit history or an endorser (someone who agrees to repay the loan if you do not pay it) with an acceptable credit history.

Please email the Office of Financial Aid fa@nyaa.edu in case of any questions.

Loans
Academy students may apply for both Federal Stafford loans (Unsubsidized loans) & Graduate Plus Loans. Our direct lending code is G26001.

Program Amount/Interest How to Apply
Federal Direct Student Loan (Unsubsidized Staffort Loan) Amount: Up to $20,500/year File FAFSA*, complete Master Promissory Note (MPN) and Entrance Loan Counseling.
Interest: Fixed, 8.08% for the Loans first disbursed on or after 7/1/24 and before 7/1/25 (1.057% origination fee) on or after 10/1/2020.
Federal Direct Graduate PLUS Loan
Amount: Up to the cost of education less aid received
File FAFSA, and student complete PLUS Master Promissory Note, Entrance Loan Counseling. All Direct Plus Loan borrowers are subject to a credit check.
Interest: Fixed, 9.08% for the Loans first disbursed on or after 7/1/24 and before 7/1/25 (4.228% origination fee) on or after 10/1/2020.

 

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Entrance and Exit Counseling

Entrance and Exit Counseling

Entrance Interview
Exit Interview

During your last semester before graduation, you will need to complete the Exit Interview.

https://studentaid.gov/exit-counseling/

 

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Federal Work Study

Federal Work-Study (FWS) is a federally funded program by both the Department of Education and the New York Academy of Art. This program provides part-time jobs for eligible MFA and CFA students with significant financial need and is administered by an FWS Administrator, the FWS Committee and the Office of Financial Aid, in accordance with the law, federal regulations, and with instructions from the United States Department of Education. The program is open to students with US citizenship or US permanent resident status. Please  email fa@nyaa.edu with questions about eligibility.

To review 2024-25 FWS Handbook please click on the link below.

https://nyaa.edu/wp-content/uploads/2024/09/NYAA-2024-2025_FWS_Handbook.pdf

 

 

 

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Forms

https://studentaid.gov/sites/default/files/InSchoolDeferment-en-us.pdf

Statement of Ethical Principles and Code of Conduct for FA Professionals

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International Student Loans

The following list of resources is provided to assist  international students in their loan research. Loans for international students require a US citizen co-signor. Please consult with your financial advisor for advice on private loans.

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Veteran's Benefits & Post 9/11 "GI Bill®"

“GI Bill®” is a registered trademark of the U.S. Department of Veterans Affairs (VA).

Various Department of Veterans Affairs (VA) programs provide educational benefits for spouses, sons, and daughters of deceased or permanently disabled veterans, as well as for veterans and in-service personnel, subject to certain restrictions. Students eligible to receive VA benefits do not pay tuition and fees at the time of registration, but will have anticipated aid placed onto the student account based on the estimated amount of coverage from the VA. This applies primarily to Chapter 31 and 33 benefit recipients. Veterans with service-connected disabilities may qualify for educational benefits under Chapter 31.

Basic Allowance for Housing (BAH) is usually sent directly to veterans by the VA. Students must be enrolled full-time to receive the full monthly BAH rate. Veterans and eligible dependents should contact the Registrar’s Office each term for which they desire certification of enrollment. Students eligible for BAH will only receive this benefit if their enrollment is certified with the VA each term. All veterans are expected to reach the objective (degree or certificate) authorized by the VA with the minimum number of points required. The Department of Veterans Affairs may not authorize allowance payments for points that are in excess of scholastic requirements. Applications and further information may be obtained from the student’s regional office of the Department of Veterans Affairs. Additional inquiries can be directed to the Director of Financial Aid fa@nyaa.edu. Since interpretation of regulations governing veterans’ benefits is subject to change, veterans should keep in touch with the Department of Veterans Affairs.

Important Benefit Information

  • Veterans can apply for VA benefits online.
  • Since interpretation of regulations governing veterans’ benefits is subject to change, veterans should refer regularly to the VA website at va.gov.
  • After acceptance to the Academy, complete the paperwork through the VA. A Certificate of Eligibility Letter (COE) will be mailed to the student, indicating the chapter and eligible benefit(s). Chapter 31 veterans will receive an Authorization & Certification of Entrance or Reentrance into Rehabilitation & Certification of Status (22-1905).
  • Upon receipt of your Certificate of Eligibility (COE) from VA, submit it to Director of Financial Aid fa@nyaa.edu. If you do not yet have a COE, attach a screenshot of your benefit information from the VA eBenefits website to the form, but you will still be required to send the COE to the Director of Financial Aid once you receive it.
  • After registering for classes each term, notify the Director of Financial Aid that they need to certify your enrollment. Please be sure to redact your SSN on any attachment(s).
  • More information about education benefits offered by VA is available at the official U.S. government website at benefits.va.gov/gibill.

Delayed Payments

The Academy recognizes there are times when veterans who rely on monetary benefits from the Department of Veteran’s Affairs and/or other external agencies are challenged by untimely payments. If you are an student who is a veteran or military connected student who is in such a situation, please contact the Financial Aid Office fa@nyaa.edu. The Academy will not impose any penalty, including the assessment of late fees, the denial of access to classes, libraries, or other institutional facilities, or to require that a covered individual borrow additional funds due to the individual’s inability to meet his or her financial obligations to the institution due to the delayed disbursement funding from the Department of Veterans Affairs. The Academy does not consider the following scenarios as a delayed payment:

  • If we receive confirmation from the VA that the student is no longer eligible to receive the funds or have exhausted their eligibility (after submission of certification to the VA).
  • If the student is not covered in full with their VA benefits. Students not eligible for enough VA benefits to cover their semester tuition in full are responsible for paying the balance.
  • If the student fails to submit the Certificate of Eligibility (COE), and any other required information for certification.

In the scenarios listed above, the student may be subject to finance charges or registration holds if the balance is not paid by the student.

 

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Yellow Ribbon Program

Yellow Ribbon Program | Veterans Affairs

The Yellow Ribbon Program can help you pay for higher out-of-state, private school, foreign school, or graduate school tuition and fees that the Post-9/11 GI Bill doesn’t cover. Keep reading to find out if you’re eligible and if your school takes part in this program.

You must qualify for the Post-9/11 GI Bill at the 100% benefit level.

And at least one of these must be true:

  • You served at least 36 months on active duty (either all at once or with breaks in service) and were honorably discharged, or
  • You received a Purple Heart on or after September 11, 2001, and were honorably discharged after any amount of service, or
  • You served at least 30 continuous days (all at once, without a break) on or after September 11, 2001, and were discharged or released from active duty for a service-connected disability, or
  • You’re an active-duty service member who has served at least 36 months on active duty (either all at once or with breaks in service), or
  • You’re a spouse using the transferred benefits of an active-duty service member who has served at least 36 months on active duty, or
  • You’re a dependent child using benefits transferred by a Veteran, or
  • You’re a Fry Scholar

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Repayment Plans

Federal Student Aid

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You can pick from repayment plans that base your monthly payment on your income or that give you a fixed monthly payment over a set repayment period.

FAST FACTS

  • You can pick from repayment plans that base your monthly payment on your income or plans that give you a fixed monthly payment.

  • Repayment plans based on your income are a smart choice to lower your payment. For example, payments on the Saving on a Valuable Education (SAVE) Plan are no more than 10% of your discretionary income. The lower your income—or the larger your family size—the less you’ll pay each month.

  • If you don’t pick a repayment plan, your loan servicer will place you on the Standard Repayment Plan (a 10-year fixed payment repayment plan). This plan might result in a higher monthly payment for you.

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Repayment Calculator

STUDENT LOAN REPAYMENT CALCULATOR

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Student Loan Forgiveness

Federal Student Aid

No Description

If you are employed by a government or not-for-profit organization, you may be able to receive loan forgiveness under the Public Service Loan Forgiveness Program .

Contact your servicer to apply for student loan forgiveness, and more.

Public Service Loan Forgiveness Program (PSLF)

The PSLF Program is intended to encourage individuals to enter and continue to work full-time in public service jobs.

Requirements:

  • Borrowers may qualify for forgiveness of the remaining balance of their Direct Loans after they have made 120 qualifying payments on those loans while employed full time by certain public service employers.
  • You must make 120 on-time, full, scheduled, monthly payments on your Direct Loans.
  • You must make those payments under a qualifying repayment plan. When you make each of those payments, you must be working full-time at a qualifying public service organization.

Qualifying employment:

  • Federal, state, local, or tribal government organizations.
  • A 501(c)3 nonprofit.
  • A not-for-profit that’s not 501(c)3 designated but meets other requirements related to public service.
  • AmeriCorps, in a full-time capacity, or the Peace Corps.