Financial Aid Programs
The following federal and state programs are available to provide financial assistance.
Federal Pell Grant
The Pell Grant assists undergraduate students who need financial help for their education and, like other grants, does not have to be repaid. Applicants must submit the Free Application for Federal Student Aid (FAFSA) to determine eligibility for the grant. For 2014-2015, Pell Grant amounts range from $595 to as much as $5,730. The Pell Grant amounts stated are based upon the current funding levels established by Congress. This funding level is subject to change and your Pell award amount could be reduced. For 2013-2014, Pell grant amounts range from $574 to $5,645.
Effective July 1st, 2012 students are limited to 12 semesters, or their equivalent, of Pell grants.
Federal Supplemental Educational Opportunity Grant (FSEOG)
The purpose of the FSEOG Program is to provide additional grants to students who are Pell-eligible and who demonstrate exceptional financial need.
Nebraska Opportunity Grant (NOG)
The NOG is available to students who are working towards their first bachelor's degree and whose expected family contribution (EFC) is $6000 or less. These grants are funded by the Federal government through the Leveraging Educational Assistance Partnership Grants, by the State, and, where applicable, other contributing partners. The award is contingent upon approval by the Nebraska Coordinating Commission for Postsecondary Education.
Federal Work-Study (FWS)
The work-study program provides jobs for eligible students who show unmet need. Student workers are paid biweekly as hours are worked. Most FWS students are employed on campus and work an average of 8-10 hours per week at a salary of at least minimum wage. Some jobs are designated community service jobs as students assist individuals in the greater northeast Nebraska area. Northeast also provides FWS students for an off-campus reading tutors program for elementary school children.
- All loans must be repaid by the borrower and should be taken with extreme caution and forethought. Failure to repay a loan will negatively affect the student for years.
- A first-time borrower at Northeast must complete a Master Promissory Loan Note.
- Before receiving a first disbursement, first-time borrowers at Northeast must complete loan counseling.
- Loans for the year will have two disbursements, half in the fall and half in the spring.
- Loans will be credited directly to the student’s account. After the student’s school expenses are covered, excess amounts will be returned to the student by mail within 14 days to be used for other costs of education.
Subsidized Federal Stafford Loan
To be eligible for the subsidized Stafford Loan, a student must show need and be enrolled at least half- time. The government subsidizes the loan by paying the interest for the student during periods of at least half-time enrollment. For the 2013-2014 and 2014-2015 school years, freshman students may be eligible for up to a maximum of $3500, and sophomores may borrow up to $4500. The repayment period begins 6 months after the student is no longer enrolled at least half-time.
Borrowers of subsidized Stafford Loans first disbursed on or after July 1, 2014 are once again eligible for an interest subsidy during the 6-month grace period. The subsidy had been temporarily removed for loans first disbursed on or after July 1, 2012, and before July 1, 2014.
Effective July 1, 2014 the interest rate of the Federal Subsidized Stafford Loan for 2014-2015 is 4.66% fixed. The interest rate of the Federal Subsidized Stafford Student Loan for 2013-2014 is 3.86% fixed.
First-time borrowers: New maximum time for Direct Subsidized Loans:
New federal regulations limit new borrower eligibility for Direct Subsidized Loans to 150% of the published length of an undergraduate program. This limit applies only to first-time borrowers. See the Federal Student Aid Information sheet for a full explanation of this change.
Unsubsidized Federal Stafford Loan
The terms of the unsubsidized Federal Stafford Loan are identical to those of the subsidized Federal Stafford Loan with two exceptions-a student is not required to show need for the unsubsidized Federal Stafford Loan and interest is the student's responsibility from the beginning. The government does not pay interest for the student. Subsidized loan eligibility reduces available unsubsidized limits. Independent students could have up to $4,000 of additional eligibility above the $3,500 for level-one students and $4,500 for level-two students.
Effective July 1, 2014 the interest rate of the Federal Unsubsidized Stafford Loan for 2014-2015 is 4.66% fixed. The interest rate on the Federal Unsubsidized Stafford Student Loan for 2013-2014 is 3.86% fixed.
Ensuring Continued Access to Student Loans Act of 2008 (ECASLA)
President Bush signed into law the Ensuring Continued Access to Student Loans Act of 2008 (H.R. 5715) on May 7, 2008. The bill makes significant changes to federal student programs, including several that could help Northeast students and parent loan borrowers.
The law makes these federal student aid changes effective July 1, 2008:
- Increases the additional unsubsidized Stafford annual limits by $2,000 for independent, undergraduate students and for dependent, undergraduate students whose parents cannot borrow PLUS.
- Increases unsubsidized Stafford limits for dependent students by introducing additional unsubsidized amounts of $2,000.
- Allow parents to choose to defer payments on a PLUS loan until six months after the date the student ceases to be enrolled at least half-time; accruing interest could either be paid by the parent borrower monthly or quarterly, or be capitalized quarterly.
- Increases aggregate loan amounts for undergraduate dependent students from $23,000 to $31,000.
- Increases aggregate loan amounts for undergraduate independent students from $46,000 to $57,500.
Parent Loan for Undergraduate Students (PLUS)
The PLUS loan is available to parents of dependent students to help meet remaining costs of education. Maximum eligibility is total cost of education minus financial aid.
Effective July 1, 2014 the interest rate of the Parent Loan for Undergraduate Students (PLUS) for 2014-2015 is 7.21 % fixed. The interest rate for the Parent Loan for Undergraduate Students for 2013-2014 is 6.41% fixed.
Effects of Sequester on Federal Direct Loan Origination Fees
On August 2, 2011, Congress passed the Budget Control Act of 2011, which put into place automatic federal budget cuts, known as the “sequester.” While this law does not otherwise change the amount, terms, or conditions of your Direct Stafford Loan or the Direct Plus Loan (for both parent and graduate student borrowers) it does increase the loan fees on these loans whose first disbursement is on or after July 1, 2013.
The Direct Stafford Loan fee will increase from 1.0 % of your loan amount to 1.051 %. For example, the fee on a $5,500 loan will increase by $2.80 from $55.00 to $57.80. The Direct PLUS Loan fee will increase from 4.0 % of your loan amount to 4.204 %. For example, the fee on a $10,000 PLUS loan will increase by $20.40 from $400.00 to $420.40.
Direct Subsidized Loans and Unsubsidized Loan origination fees first disbursed on or after December 1, 2013 will have an origination fee of 1.072% while the Direct PLUS Loan fees will be 4.288%. For example, the fee on a $5,500 Federal Student loan will increase to $58.96 while the fee on a $10,000 PLUS loan will increase to $428.80.
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Financial Aid Office