Educational Loan Opportunities Page
Types of Educational Loan Opportunities
FEDERAL PERKINS:
A Federal Perkins
Loan is administered by the College and is awarded to students with exceptional
financial need. This loan, which is a 5% simple interest loan, is typically awarded
in amounts ranging from $500 to $2,000 annually, most often to first or second
year students to supplement lower Federal Stafford Loan eligibility. Repayment begins nine months
after the student graduates, reduces his/her program to less than half time, or
withdraws from NEC. Students are normally allowed up to 10 years to repay the Federal Perkins Loan.
FEDERAL STAFFORD LOANS
(subsidized and/or unsubsidized):
A Federal Stafford Loan is a low interest, federal loan
awarded on the basis of need. The interest rate will be fixed at 6.8% for
Federal Stafford Loans beginning on July 1, 2007.
Repayment begins after the six month grace period expires. Depending on need,
first-year students may borrow up to $3,500, sophomores up to $4,500, and
juniors and seniors may borrow up to $5,500 each year. In order to be eligible for
the supplemental unsubsidized Stafford loan, a student must be either independent by
federal standards or for dependent students, parents must receive a credit
denial for the PLUS loan.
PARENT PLUS LOAN:
The Parent Loan for Undergraduate Students (PLUS) must be borrowed by a parent. The
parent(s) can borrow up to the cost of education less financial assistance
awarded and accepted by the student. The interest rate is fixed at 8.5% as of
July 1, 2007. Origination fees for this loan may be as high as 4%
depending on the lender. Repayment for the PLUS will begin 30-45 days after the
first disbursement has been released.

