Types of Educational Loan Opportunities

Federal Perkins Loan

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 Direct Stafford Loan

A Federal Stafford Loan is a low interest, federal loan awarded on the basis of need. The interest rate will be fixed at 3.4% for Federal Direct Subsidized Stafford Loans beginning on July 1, 2011. 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. 

Federal Direct 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 7.9%. Origination fees for this loan are 4% with a 1.5% up-front interest rebate. Repayment for the PLUS will begin 30-45 days after the first disbursement has been released or may be deferred until after graduation.