You must complete the financial aid application process to be considered for a student loan. The Financial Aid Office staff will process your award, which often includes your loan eligibility amounts. You will be able to view your award and accept or decline aid on My Northeast. If loans are not included in your aid package, contact the Financial Aid Office. You still may have eligibility. Once you know what your eligibility is you must complete the following:
- Accept or decline the loan(s) on My Northeast or by returning a paper award letter. Indicate the amount(s) you wish to borrow for the year.
- Complete a Direct Loan Master Promissory Note (MPN) at www.studentloans.gov. The MPN is a legal document in which the borrower promises to repay the loan and any accrued interest and fees to the Department of Education. It also explains the terms and conditions of the loan. This only needs to be done when you apply for your first Direct Loan at Northeast.
- Complete online Direct Loan Entrance Counseling at www.studentloans.gov
Northeast will be notified once you have completed your Direct Loan Master Promissory note and Loan Entrance Counseling and we will certify your loan request for the amount that you accepted in your award notification.
On subsidized Direct Student Loans the U.S. Department of Education pays (subsidizes) the interest while the borrower is in school at least half time. A student has a grace period of 6 months after they graduate, leave school, or drop below half-time status before they must begin repayment on the loan.
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.
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.
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.
For an unsubsidized Direct Student Loan, the borrower is responsible for paying the interest that accrues. The student does not have to pay any principal, but can either pay the interest as it accrues or it will be capitalized (i.e., added to the principal loan balance later). A student has a grace period of 6 months after they graduate, leave school, or drop below half-time status before they must begin repayment on the loan.
Effective July 1, 2014 the interest rate of the Federal Unsubsidized Stafford Loan for 2014-2015 is 4.66% fixed. The interest rate of the Federal Unsubsidized Stafford Student Loan for 2013-2014 is 3.86% fixed.
Your student must complete the financial aid application process (FAFSA) in order for you to be considered for a Direct Parent PLUS loan. To borrow a Direct Parent PLUS loan for a student, the parent must be the student’s biological or adoptive mother or father. A stepparent is also eligible to borrow a PLUS loan if his/her income and assets were taken into account when calculating the Expected Family Contribution (EFC) on the FAFSA. A legal guardian is not considered a parent for federal purposes. The student must be attending at least half time and maintain satisfactory academic progress. Parent borrowers wishing to apply for a Direct Parent PLUS Loan must complete the following:
- The Northeast Direct Parent PLUS Loan Request Form available from the Northeast Financial Aid Office. Please contact our office at 402-844-7289.
- Direct Parent PLUS Loan Application at www.studentloans.gov
- Direct Parent PLUS Loan Master Promissory Note (MPN) at www.studentloans.gov. The MPN is a legal document in which the borrower promises to repay the loan and any accrued interest and fees to the Department of Education. It also explains the terms and conditions of the loan. In most cases, one MPN can be used for loans that a parent receives over multiple academic years although a separate Northeast Loan Request and PLUS Loan Application must be filed for each school year. The parent who completes the Northeast Direct Parent PLUS Loan Request Form must be the same parent who completes the MPN and PLUS Loan Application.
The Financial Aid Office at Northeast will be notified once you have completed the MPN and PLUS Loan Application. We must receive this notification and the Northeast PLUS Loan Request Form before any PLUS loan funds can be disbursed to your student’s account.
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 of the Parent Loan for Undergraduate Students for 2013-2014 is 6.41% fixed.
Payments are made to the U.S. Department of Education for both Direct Student Loans and Direct Parent PLUS Loans.
Students do not have to start repayment of Direct Student Loans until six months after they graduate or they fall below half-time status. However, payments may be made at any time towards your loan. Your loan servicer will provide information about repayment and will notify you of the date loan repayment begins.
The repayment period for all Parent PLUS Loans begins on the date the loan is fully disbursed, and the first payment is due within 60 days of the final disbursement. Parent PLUS Loan borrowers whose loans were first disbursed on or after July 1, 2008, may choose to have repayment deferred while the student for whom the parent borrowed is enrolled at least half-time and for an additional six months after that student is no longer enrolled at least half-time. Interest that accrues during these periods will be capitalized if not paid by the parent during the deferment. Your loan servicer will provide information about repayment.
The U.S. Department of Education's National Student Loan Data SystemSM (NSLDSSM) provides information on your federal loans including loan types, disbursed amounts, outstanding principal and interest, and the total amount of all your loans. To access NSLDS, go to www.nslds.ed.gov.
If you're not sure who your loan servicer is, you can look it up on www.nslds.ed.gov or call the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243; TTY 1-800-730-8913). To see a list of Federal Student Aid servicers for the Direct Loan Program and for FFEL Program Loans purchased by the U.S. Department of Education, go to the Loan Servicer page.
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.
Effective for the fall 2014 term, if a student is a first-year undergraduate student and a first-time loan borrower, Northeast Community College cannot disburse his/her first loan payment until 30 days after the first day of the enrollment period. This practice ensures that students will not have a loan to repay if they do not begin classes or if they withdraw during the first 30 days of classes.
In addition, any student that is only enrolled for one semester (for example, the student is enrolled for fall and graduating at the end of the fall semester), that student’s loans must be disbursed half on the standard disbursement date and half at the mid-point of the semester.
Grants and scholarships will be disbursed at the beginning of each term or as funds are received by the College.