Loans

A Federal Direct Student Loan is a variable low-interest loan that will help to cover educational costs. Be sure to list which loans you are applying for and the amount on the NSCC Financial Aid Form.

There are two types of Direct Student Loans:

Subsidized: The government pays the interest while you are in school. This loan has a deferment and a grace period.

Unsubsidized: You pay the interest while in school. This loan also has a deferment and a grace period.

The FAFSA application is used in making the determination as to whether you are eligible for a subsidized loan or an unsubsidized loan.

Loans are disbursed in two disbursements, even if it is a one-semester loan. The second disbursement is halfway through the loan period.

Each loan payment has a 1.057% loan origination fee deducted before it is disbursed to the student. This percentage is set by the Department of Education each July.

Freshman, first-time borrowers’ first disbursement will be delayed until the 30th day of the semester.

After you graduate, leave school, or drop below half-time enrollment, you have a six-month grace period before repayment begins. The Federal Government will send you information about repayment. 

The Federal Direct PLUS Loan Program provides a source of loan funds to the parents of dependent undergraduate students. 

• PLUS Borrowers are required to file a FAFSA application. 
• Parents can borrow up to the cost of education minus other financial aid for the student. 
• The interest rate on PLUS loans is currently 7.54%. This is a variable rate set by the Department of Education each July. The interest rate is fixed for the life of the loan.
• Repayment on both principal and interest begins within 60 days after the loan is fully disbursed. 
• There is no grace period for these loans. Interest will begin to accumulate at the time the first disbursement is made.