Graduate Students Enrolled in Undergraduate Courses
References: 2020–2021 FSA Handbook, Vol. 3, Chapter 7: Packaging Aid and 2021–2022 FSA Handbook, Vol. 2, Chapter 2: Program Eligibility, Written Arrangements, and Distance Education and Code of Federal Regulations, Title 34 CFR 685.200(f)(6), and Title 34 CFR 685.203
A graduate student who is required to complete preparatory undergraduate coursework may be eligible for federal student loans. A graduate student who is taking some undergraduate coursework is eligible for graduate loan limits if the student is enrolled at least half-time in graduate courses (or at least half-time in undergraduate coursework that can be applied to graduate program requirements). The student must already be admitted into a New York Institute of Technology graduate program. Students are not eligible for federal graduate-level loans in any semester in which they are not registered for at least six graduate credits toward their graduate degree.
A non-matriculated student with a bachelor’s degree who is taking preparatory coursework for acceptance into a graduate school may be eligible for federal student loans. Students who must complete undergraduate coursework to fulfill degree requirements for a graduate program are not eligible for graduate loan limits unless they are matriculated into the graduate program and enrolled at least half-time for graduate credits in that program.
A graduate student taking undergraduate preparatory coursework at least half-time may be eligible for undergraduate loan limits based on credit load and must submit a completed Preparatory Coursework form to the Office of Financial Aid.
If a student is required to take undergraduate preparatory courses for a graduate program, and is not enrolled at least half-time in required credits for the graduate program, the student will have one 12-month consecutive period in which they may borrow Subsidized (if eligible) and Unsubsidized Direct Loans at an undergraduate loan level. The student must be enrolled at least half-time (six credits) in the prerequisite courses to be eligible for the prerequisite-level loans. The amounts that can be borrowed are capped at no more than the annual maximum for a fifth-year undergraduate. (Please note that fifth-year undergraduate loans are subject to the undergraduate aggregate loan totals. So, if you’ve previously borrowed up to the maximum aggregate amount allowed in undergraduate loans, you will not be eligible for additional undergraduate-level federal student loans and may have to utilize alternative methods to cover education costs, such as private student loans, during your prerequisite course period.)
A Preparatory Coursework form completed by the student and a faculty advisor in your academic department must be submitted to the Office of Financial Aid in order to receive fifth-year level Federal Direct Subsidized and Unsubsidized Direct Loans.
If students are unable to complete all preparatory courses within the first 12 months of attendance at New York Institute of Technology, they should be advised that they may only be able to borrow private, alternative student loans to cover the cost of their remaining preparatory courses, unless student is concurrently registered for at least six graduate credits per semester to qualify for graduate-level federal loans.