Student Loans
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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
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William D. Ford Direct Stafford Loan Program:
Freshman maximum - $5,500.00
Sophomore maximum - $6,500.00Interest Rate effective July 1, 2020
- 2.75% for the subsidized loan* Federal government pays interest while student is in school
- 2.75% for the unsubsidized loan Student is responsible for interest while in school
- 5.3% 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.
To be considered for eligibility a student must be
- enrolled for at least 6 degree—bearing credits,
- meeting satisfactory academic progress standards
- matriculated in an approved degree or certificate program.
Important: If you choose to accept a student loan, you must then complete an Entrance counseling session, Master Promissory Note and the Annual Student Loan Acknowledgment at studentaid.gov.
NOTE: Starting in the 2020-2021 school year, borrowers of Federal Subsidized, Unsubsidized and PLUS loans will be required to complete the Annual Student Loan Acknowledgement once each award year before receiving disbursement of their loan. The Annual Student Loan Acknowledgement is an online session that allows students and parents to see how much they have borrowed, preview what their monthly payments might be, and explain concepts such as capitalization and the difference between federal and private loans. The goal is to help you understand how your loans affect your financial future.
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 studentaid.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 studentaid.gov or come into our office for an in-person loan exit interview.
The understanding of personal finance and student loan debt are financial literacy topics of particular importance to college students. Visit http://www.ncc.edu/admissions/financialaid/financial_literacy.shtml. SUNY Smart Track will assist you from the time you apply and even after you graduate!
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 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. For more information on the Nursing Loan, contact our loan officer.
It's important to be a responsible borrower and manage your student loans.
- Alternative or Private Loans
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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
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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 studentaid.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 default. 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.
One Education Drive, Garden City, New York 11530-6793 - 516.572.7501
Nassau Community College A Part of the State University of New York System (SUNY)
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