Financial Aid

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Student Loan Information 

 




William D. Ford Federal Direct Loan Program
Direct Loan Links

Time Limitation on Direct Subsidized Loan Eligibility

Federal Direct Loans Website - Learn About Direct Loans

Online Master Promissory Notes for Direct Loans

Online Entrance Counseling for Direct Loans

National Student Loan Data System (NSLDS) Student Access

Direct Loan Servicing - Repaying your Direct Loan

Direct Loan Payment Calculator

Direct Loan Consolidation

The William D. Ford Federal Direct Loan Program offers Direct Loans to eligible students and parents to help pay for the cost of a student's education after high school. The lender is the U.S. Department of Education, though you may deal with a different entity as your loan servicer.
Types of Direct Loans offered at NCMC are Subsidized Stafford Loans, Unsubsidized Stafford Loans, and Parent PLUS Loans.


What is the difference between Subsidized and Unsubsidized Loans?

For Direct Subsidized Loans, the borrower is not typically charged interest while enrolled at least half-time. The interest subsidy may be limited for students who fail to complete their program within 150% of its published length. Interest is also not charged during the grace period on loans first disbursed before 7/1/2012. For Direct Unsubsidized Loans, interest accrues from the time the loan is first paid out. The interest can be paid while the student is in school and during grace, deferment, or forbearance periods. If not paid, the interest will be capitalized (added to the principal amount of the loan). If possible, it is always a good idea to pay interest on an Unsubsidized Loan while the student is in school and during any grace, deferment and/or forbearance periods.

What are the rates, fees, and terms of Direct Stafford and PLUS Loans?


Loan Type

Interest Rate

Origination Fees*

Net Disbursement After Fees*

Grace Period

Standard Repayment Term

Subsidized

 

 

 

 

 

 

Undergraduate Subsidized Stafford (first disbursement between 7/1/2011 and 6/30/2013)

3.40%

1.051%

98.949% of loan

6 months

10 years

Undergraduate Subsidized Stafford (first disbursement between 7/1/2013 and 11/30/2013)

3.86%

1.051%

98.949% of loan

6 months

10 years

Undergraduate Subsidized Stafford (first disbursement between 12/1/2013 and 9/30/2014)

3.86%

1.072%

98.928% of loan

6 months

 

10 years

Undergraduate Subsidized Stafford  (first disbursement on or after 7/1/2014)

4.66%

1.072%

98.928% of loan

6 months

 

10 years

Unsubsidized

 

 

 

 

 

 

Undergraduate Unsubsidized Stafford

3.86%

1.051%

98.949% of loan

6 months

10 years

Undergraduate Unsubsidized Stafford (first disbursement between 12/1/2013 and 6/30/2014)

3.86%

1.072%

98.928% of loan

6 months

 

10 years

Undergraduate Unsubsidized Stafford (first disbursement on or after 7/1/2014)

4.66%

1.072%

98.928% of loan

6 months

 

10 years

PLUS

 

 

 

 

 

 

Parent PLUS

7.90%

4.204%

95.796% of loan

None

10 years

Parent PLUS (first disbursement between 7/1/2013 and 6/30/2014)

6.41%

4.288%

95.712% of loan

None

 

10 years

Parent PLUS (first disbursement on or after 7/1/2014)

7.21%

4.288%

92.712% of loan

None

 

10 years

*An origination fee is deducted from your loan disbursement. The origination fee is 1.072% on Stafford Loans and 4.288% on PLUS Loans. Thus the amount of your loan that will disburse to your student account at NCMC is 98.928% of the amount accepted for the Stafford Loans and 95.712% of the amount accepted for the PLUS Loan.

How do I apply for a Federal Direct Loan? 

STEP ONE: Apply for financial aid with NCMC by submitting the Free Application for Federal Student Aid (FAFSA) online at www.fafsa.gov (FASFA Code 002514) and providing any additional information requested by the College.

STEP TWO: Accept your award by filling out a Student Loan Request Form and/or Parent PLUS Loan Request Form for the appropriate year.

STEP THREE: Complete a Master Promissory Note for your Federal Direct Stafford or PLUS Loan online at www.studentloans.gov. Students sign in to complete the Stafford Loan Master Promissory Notes; parents sign in to complete the Parent PLUS Loan Master Promissory Note.

STEP FOUR - FOR NEW STUDENT BORROWERS: If you are borrowing your FIRST Stafford Loan for attendance at NCMC, complete loan entrance counseling online at www.studentloans.gov and read about Direct Subsidized Loan Limits.

What do I need to do when I graduate or leave school?

If you had a Direct (either Subsidized or Unsubsidized) Loan, you are required to complete Exit Counseling at www.studentloans.gov, before you graduate or withdraw. Once you are no longer enrolled at least half time in an eligible program, you will receive a 6-month grace period on your Direct Subsidized and/or Unsubsidized Loans, during which you are not required to make loan payments. You must begin repayment at the end of your grace period.