Loans

Student Loans

APPLYING FOR A STUDENT LOANTo apply for a Federal Stafford Student Loan, the student must first complete a FAFSA (Free Application for Federal Student Aid) for the school year in which they plan to attend. Once the FAFSA has been received by NEMCC, the Financial Aid Office will mail the student a Student Information Sheet. Instructions are given on this form on how to apply for a student loan.  The student will complete a Federal Student Loan Packet.  The student must also complete Entrance Loan Counseling (instructions in Loan Packet) and a Master Promissory Note (MPN) (instructions in Loan Packet) before the loan can be processed.  The student will then be notified of the amount that has been awarded by an Award Letter.  Loan checks will not be disbursed to students until 30 days after the beginning of the first term of the loan period.  All of the above mentioned tasks must be complete before the student may receive funds. FEDERAL DIRECT STAFFORD LOAN “SUBSIDIZED” This is a low-interest loan made to students by a lender such as a bank, credit union, or savings and loan association, to help pay for their education after high school. These loans are available for undergraduate and graduate students. Undergraduate students may borrow up to $3,500 a year as a first-year student, $4,500 as a second-year student, and $5,500 as 3rd- and 4th-year undergraduate student. As with all need based programs, eligibility must be established. You may apply for a Federal Stafford Loan at Northeast if you are already enrolled, in good standing, and make satisfactory academic progress, or if you have been accepted for enrollment on at least a half-time basis.Federal Direct Stafford Loan checks will not be disbursed to students until 30 days after the beginning of the first term of the loan period. Student tuition and fees are deducted from the first financial assistance – loan, grant, scholarship, etc. – received by the college.FEDERAL DIRECT STAFFORD LOAN “UNSUBSIDIZED”This is a loan for students who may not qualify, in whole or in part, for the “subsidized” Stafford Loan based on need as determined by the Free Application for Federal Student Aid. The terms and conditions are generally the same as the “subsidized” Stafford Loan, except that the borrowers are responsible for interest that accrues while they are in school. Eligibility for the “subsidized” Stafford Loan must be determined before a student can apply for an “unsubsidized” Stafford Loan.———————The maximum amount a student can borrow each year in Direct Subsidized and Unsubsidized Loans depends on the student’s grade level and on whether the student is a dependent student or an independent student. The following table shows the maximum amount of money that may be borrowed each academic year in Direct Subsidized and Unsubsidized Loans:

Dependent student1 Independent student2
1st-year undergraduate $5,500 (maximum $3,500 subsidized) $9,500 ($3,500)3
2nd-year undergraduate $6,500 ($4,500) $10,500 ($4,500)
3rd- and 4th-year undergraduate $7,500 ($5,500) $12,500 ($5,500)
Graduate/professional NA (All graduate and professional students are considered independent.) $20,500 ($8,500)

1Except those whose parents are unable to borrow a PLUS loan.2These limits also apply to dependent students whose parents are unable to borrow a PLUS loan.3The numbers in parentheses represent the maximum amount that may be subsidized.The actual loan amount a student is eligible to receive for an academic year is determined by the school school and may be less than the maximum annual amounts shown in the chart above.Below are the aggregate (total) limits for Direct Subsidized and Unsubsidized Loans:

  • $31,000 for dependent undergraduate students excluding those whose parents are unable to borrow a PLUS Loan (no more than $23,000 may be subsidized)
  • $57,500 for independent undergraduate students and dependent undergraduates whose parents are unable to borrow a PLUS loan (no more than $23,000 may be subsidized)
  • $138,500 for graduate or professional students (no more than $65,500 may be subsidized; includes loans for undergraduate study)

These aggregate limits include both Direct Subsidized and Unsubsidized Loans and any subsidized and unsubsidized Federal Stafford Loans received through the Federal Family Education Loan (FFEL) Program.With a Direct PLUS Loan, a graduate/professional student or the parent of a dependent student can borrow up to the cost of the student’s attendance minus other financial aid the student receives

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