NCC Student Loans

If you apply for financial aid, you may be offered loans as part of your school’s financial aid award. A loan is money you borrow and must pay back with interest.

If you decide to take out a loan, make sure you understand who is making the loan and the terms and conditions of the loan. Student loans can come from the federal government or from private sources such as a bank or financial institution. Loans made by the federal government, called federal student loans, usually offer borrowers lower interest rates and have more flexible repayment options than loans from banks or other private sources.

Code of Conduct for Education Loans

Federal Loans

William D. Ford Direct Stafford Loan Program:
Freshman maximum - $5,500.00
Sophomore maximum - $6,500.00

Interest Rate effective July 1, 2017

5.05% for the subsidized loan* Federal government pays interest while student is in school
5.05% for the unsubsidized loan Student is responsible for interest while in school
7.6% for the PLUS (Parent Loans for Undergraduate Students)

*Federal Direct Subsidized Loans were permanently limited to 150% of the length of a student’s academic program. Students will be limited to receiving subsidized loans for 3 years in a 2-year program or 6 years in a 4-year program beginning July 1, 2013.

Additionally, the borrower who reaches the 150% limitation will have their interest subsidy end for all outstanding subsidized loans that were disbursed on or after July 1, 2013. Repayment does not begin, but like unsubsidized loans, the student (rather than the government) would become responsible for interest accumulation at this point.

You can view your financial aid awards, read messages, accept or decline loans and determine what documents are required. Start by logging in at MyNCC.

MyNCC Login
Log in using your NCC ID(N#) and Password
Select the Financial Aid Tab

Important: If you choose to accept a student loan, you must then complete an Entrance counseling session and Master Promissory Note at studentloans.gov.

If you need to request a student loan, complete a Loan Request form

The US Department of Education will assign your loan to a Loan Servicer. Your loan servicer is the organization that handles billing you for your loan repayment and can assist you with any questions you may have about your loan. Visit nslds.ed.gov to find out who your loan servicer is.

National Student Loan Data System (NSLDS) is the central database for student aid. It receives data from schools, guaranty agencies, the Direct Loan program and other Department of ED programs. NSLDS provides borrowers access to information on all student loans and/or federal grant amounts, including information on loan status, outstanding balances, and disbursements.

Remember, when a student/borrower has graduated, is enrolled in less than 6 credits or left school, they must complete a loan Exit Counseling session for the Stafford loan. You can complete this requirement online at studentloans.gov or come into our office for an in-person loan exit interview.

Federal Nursing Student Loan:

Restricted for students in the Nursing program only

Maximum - $3,000.00 per year
Interest rate - 5%

Request an application in the Financial Aid office

Remember, when a student/borrower has graduated, is enrolled in less than 6 credits or left school, an Exit Interview must be completed for the Perkins or Nursing loan. This is separate and in addition to the Direct Stafford loan exit and is done in person in the Student Financial Affairs office.

It's important to be a responsible borrower and manage your student loans.

Alternative or Private Loans

Private Education Loans, also known as Alternative Education Loans, help bridge the gap between the actual cost of your education and the limited amount the government allows you to borrow in its programs. Private loans are offered by private lenders and there are no federal forms to complete.

Some families turn to private education loans when the federal loans don't provide enough money or when they need more flexible repayment options. However, since federal education loans are less expensive than and offer better terms than private student loans, you should exhaust your eligibility for federal student loans before resorting to private student loans.

Many students take out private education loans in order to finance their education. With that, it’s best to get as much information as possible before you begin the process.

In order to process your Alternative Educational loan you must complete the Private Education Loan Applicant Self-Certification form. When submitting this form, a counselor will discuss all the aid options you may have.

Loan Default Prevention

Once you have accepted a loan, you are assigned a loan servicer. Your loan servicer is the organization that handles billing you for your loan and can provide you with information about repayment. To find out who your servicer is visit 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).

It is important that you contact your servicer and set up a repayment schedule. If you do not, you could end up in index. Default means you failed to make payments on your student loan according to the terms of your promissory note, the binding legal document you signed at the time you took out your loan.

Here are some of the serious consequences of index:

State and federal income tax refunds can be withheld and applied toward the amount you owe.
National credit bureaus can be notified of your index, which will harm your credit rating, making it hard to buy a car or a house.
You will be ineligible for additional federal student aid if you decide to return to school.
Loan payments can be deducted from your paycheck.
You will have to pay late fees and collection costs on top of what you already owe
You can be sued.

You have a choice of several repayment plans that are designed to meet the different needs of individual borrowers. The amount you pay and the length of time to repay your loans will vary depending on the repayment plan you choose. If you're having trouble making payments on your loans, contact your loan servicer as soon as possible. Your servicer will work with you to determine the best option for you.

"Financial Awareness Counseling Tool”

Attention Loan Borrowers: Regarding Payments sent to ACS

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