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 Repayment Estimator
Direct Loan Consolidation
The William D. Ford Federal Direct Loan (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.
There are three types of Direct Loans offered at NCMC:
- Direct Subsidized Loans are loans made to eligible undergraduate students who demonstrate financial need to help cover the costs of higher education at a college or career school.
- Direct Unsubsidized Loans are loans made to eligible undergraduate, graduate, and professional students, but in this case, the student does not have to demonstrate financial need to be eligible for the loan.
- Direct PLUS Loans are loans made to graduate or professional students and parents of dependent undergraduate students to help pay for education expenses not covered by other financial aid.
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 loan fees for Direct Subsidized Loans, Direct Unsubsidized Loans and Direct PLUS Loans?
|Loan Type||First Disbursement Date||Loan Fee|
|Direct Loans and Direct Unsubsidized Loans Subsidized||On or after 10/1/14 and before 10/1/15||1.073%|
|On or after 10/1/15 and before 10/1/16||1.068%|
|On or after 10/1/16 and before 10/1/17||1.069%|
|On or after 10/1/17 and before 10/1/18||1.066%|
|Direct PLUS Loans||On or after 10/1/14 and before 10/1/15||4.292%|
|On or after 10/1/15 and before 10/1/16||4.272%|
|On or after 10/1/16 and before 10/1/17||4.276%|
|On or after 10/1/17 and before 10/1/18||4.264%|
Loans first disbursed prior to Oct. 1, 2014, have different loan fees.
An origination fee is deducted from your loan disbursement. The amount of your loan that will disburse to your student account at NCMC is the net amount (100% minus the loan fee equals net amount).
What are the loan interest rates for Direct Subsidized Loans, Direct Unsubsidized Loans and Direct PLUS Loans?
Graduate or Professional
|Loan Type||Borrower Type||First Disbursement Date||Fixed Interest Rate|
|Direct Subsidized Loans*||Undergraduate||7/1/17 – 6/30/18||4.45%|
|7/1/16 – 6/30/17||3.76%|
|7/1/17 – 6/30/18||4.45%|
|7/1/16 – 6/30/17||3.76%|
|7/1/15 – 6/30/16||4.29%|
|Graduate or Professional||7/1/06–6/30/12||6.8%|
|Subsidized Federal Stafford Loans**||Undergraduate||7/1/09–6/30/10||5.6%|
|Direct Unsubsidized Loans||Undergraduate|
|7/1/17 – 6/30/18||4.45%|
|Graduate or Professional ||7/1/17–6/30/18||6%|
|Undergraduate and Graduate or Professional||7/1/06–6/30/13||6.8%|
|Unsubsidized Federal Stafford Loans**||Undergraduate and Graduate or Professional||7/1/06–6/30/10||6.8%|
|Direct PLUS Loans||Parents and Graduate or Professional||7/1/17 – 6/30/18||7%|
|Federal PLUS Loans**||Parents and Graduate or Professional||7/1/06–6/30/10||8.5%|
*As of July 1, 2012, graduate or professional students are no longer eligible to receive subsidized loans.
**No new FFEL Program loans have been made since July 1, 2010.
Most loans (excluding Perkins Loans) first disbursed prior to July 1, 2006, have variable interest rates that are effective from July 1 of one year through June 30 of the following year. Interest rates for these loans are not displayed on this site. For information about any variable-rate loans you may have, contact your loan servicer.
How do I apply for a Federal Direct Loan?
STEP THREE: Complete a master promissory note for your Federal Direct Subsidized/Unsubsidized or Direct PLUS loan online at studentloans.gov. Students sign in to complete the 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 Direct Loan for attendance at NCMC, complete loan entrance counseling online at studentloans.gov and review Direct Subsidized Loan Limits.
What do I need to do when I graduate or leave school?
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 Unsubsidized Loans, during which you are not required to make loan payments. You must begin repayment at the end of your grace period.
You are required to complete exit counseling before you graduate or withdraw, if you had a Direct (either Subsidized or Unsubsidized) Loan. Exit counseling is completed at studentloans.gov.