Complete the Loan Process
Loans are funds that must be repaid with interest, usually after the student leaves college. Students must meet eligibility requirements to qualify for student loans. Student loans are a serious financial obligation, and we encourage you to be very careful with your student loan borrowing. It is very easy to incur a large student loan debt through these loan programs. For more detailed information regarding loans, please visit www.studentloans.gov .
*ATTENTION* Beginning with the Fall 2013 semester, due to federal regulation all first time loan borrowers will experience a 30 day delay in disbursement of loans during their first semester of borrowing. Also any student who is attending one semester only during an academic year will receive their loans in two disbursements, one at the beginning of the semester and one mid semester.
The DIRECT Subsidized Loan is a loan for undergraduate students with financial need. For loans disbursed on or after June 30 2012 the interest rate is fixed at 3.4 percent. These loans come directly from the Department of Education. The Federal government pays the interest on subsidized loans while you are still in school, and repayment begins six months after you graduate, leave school, or drop below half-time enrollment.
The DIRECT Unsubsidized Loan is a loan for undergraduate and graduate students that have no financial need. For loans disbursed on or after July 1, 2006, the interest rate is fixed at 6.8 percent. These loans come directly from the Department of Education. The Federal government does not pay the interest on unsubsidized loans while you are still in school, and repayment begins six months after you graduate, leave school, or drop below half-time enrollment.
The DIRECT Parent PLUS Loan is a loan for the parents of undergraduate students that have no financial need remaining. For loans disbursed on or after July 1, 2006 the interest rate is fixed at 7.9 percent for Direct PLUS loans. There is a fee of 4 percent of the loan deducted proportionately each time a loan disbursement is made. The PLUS loan goes into repayment 60 days after the loan is fully disbursed. The amount of Parent PLUS loan that a parent is eligible for is based on the students cost of attendance as well as any additional aid they may be recieving.
The Federal Perkins Loan is a low interest (5 percent) loan for undergraduate and graduate students with financial need. Northeastern State University is the lender for this loan, which is made with government funds. Repayment for this loan begins nine months after you graduate, leave school, or drop below half-time enrollment. Funding for this loan is limited, and is awarded to early applicants. To apply for a Federal Perkins Loan, complete the Free Application for Federal Student Aid (FAFSA) as soon after January 1 as possible. If a Perkins Loan is part of your award package, you will be contacted by the Office of Business Affairs regarding the paperwork you to need to complete. The maximum Perkins Loan award is $4,000, and you must be enrolled in at least 6 credit hours.
To apply for a student loan, complete the Free Application for Federal Student Aid (FAFSA) and indicate that you are interested in a student loan. After you have been awarded, you will receive an award letter with instructions to complete the loan process. Loans are disbursed directly to the University and applied to your account. Loan amounts vary based on grade level, financial need, and other types of aid being received.
*Note* If you are awarded a subsidized and unsubsidized loan, you only need to complete the loan process once.
View the Stafford Loan Limits for annual and aggregate loan limits for the subsidized and unsubsidized Stafford loans first disbursed on or after July 1, 2008.
A student must complete an Exit Counseling session once they graduate, fall below half-time status, or sit out of school for a period longer than 6 months.
Students may also keep track of their federal loan debt by visiting the National Student Loan Database System.