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.
Federal loans are submitted to the National Student Loan Data System (NSLDS) and may be accessed by schools, lenders and guarantee agencies determined to be authorized users of the data system.
Students may review their complete loan history and loan services on NSLDS.