Federal Loan Programs
Federal Loan Programs
Students enrolled in a minimum of six degree-bearing credits are eligible to apply
for federal loans. These funds are borrowed directly from the Federal government,
not through private lenders. Borrowers are charged an origination fee which is paid
to the Federal government. Loans may be disbursed in multiple installments, but at
least one per semester.
Stafford Direct Loan Program
Applicants with financial need are eligible for a subsidized student loan, while those
without financial need are eligible for an unsubsidized loan. The Federal government
pays the interest on subsidized loans as long as the student is enrolled at least
half-time (6 degree-bearing credits). The borrower (the student) is responsible for
interest payments under the unsubsidized loan program while in attendance and thereafter.
All first-time NCC loan borrowers must complete a master promissory note (MPN) and
entrance counseling session at www.studentloans.gov.
Repayment of the Federal subsidized and unsubsidized loans begin six months after
the borrower graduates, leaves school, or drops to below a half-time status. The student/borrower
is then required to complete an Exit Counseling session at www.studentloans.gov.
Perkins Loan Program
The Federal Perkins Loan Program provides low interest loans to help students with
high need finance the costs of postsecondary education.
Students will need to complete a Perkins promissory note, which is separate from the
Stafford loan promissory note, with the College's Perkins Loan Administrator in order
to receive this loan.
Perkins borrowers are eligible for loan cancellation for teacher service at low-income
schools and under certain other circumstances specified in the law (HEA). Students
may defer repayment of the loan while enrolled (at least half-time) at a postsecondary
school. A borrower who has difficulty repaying a Perkins Loan should contact the school
where he or she received the loan to find out if he or she is eligible for a deferment
or forbearance based on economic hardship or other circumstances.
Federal regulations require that upon graduation or withdrawal from the College, the
borrower schedule an exit interview with the Perkins Loan Administrator, located in
the Office of Student Financial Affairs.
Nursing Student Loans
This aid program is limited to students enrolled in the Nursing Program only. The
student must demonstrate financial need to be considered for this 5% low-interest
loan. The maximum award offered is $1,500 per semester with a minimum of 6 degree-bearing
credits. A separate promissory note is required for this loan.
Parent PLUS Loans
PLUS loans are unsubsidized loans for the parents of dependent students enrolled at
least half-time at a school that participates in the Direct Loan Program.
Applicants for this loan must be student's biological or adoptive parent. If the biological
or adoptive parent has remarried at the time of completing the FAFSA, the stepparent
may apply for this loan on behalf of the student.
Parent PLUS Loan borrowers cannot have an adverse credit history (a credit check will
be done). In addition, parents and their dependent child must be U.S. citizens or
eligible noncitizens, must not be in default on any federal education loans or owe
an overpayment on a federal education grant, and must meet other general eligibility
requirements for the Federal Student Aid programs.
Applications for this loan are available in the Financial Aid office. Once approved,
the borrower (parent) must complete a PLUS loan promissory note at www.studentloans.gov.
Federal Student Aid Loan Servicers
When a student receives a Federal Student Loan, they are assigned a loan servicer.
The loan servicer is the organization that handles billing for the loan(s) and can
provide borrowers with information about repayment. If you, the borrower, are not
sure who your loan servicer is, you can look up this information on the National Student
Loan Data System at www.nslds.ed.gov.
You will need your FSA ID. This is the same username and password you used to sign