Loan Information

 Financial Aid Timeline

Loan Information

On March 25th, the U.S. House of Representatives and the U.S. Senate passed the Health Care and Education Affordability Reconciliation Act of 2010 ("HCEARA" -H.R. 4872).  The act was signed into law by President Obama on March 30th, 2010.

All federal student loans processed after June 30, 2010 will be originated through the Federal Direct Loan Program.  The Family Federal Education Loan Program, which permitted private lenders to originate loans, will be eliminated after June 30, 2010.

In order to apply for a Federal Direct Loan you must:

  1. Complete Stafford Entrance Loan Counseling for the Direct Lending program.
  2. Complete a serial Master Promissory Note with the Direct Lending program.

If you borrowed from the FFELP program earlier, you may consolidate your loan upon graduation with the Federal Direct Lending program.

Loans are typically a large part of the average financial aid package; however it is up to the student to decide how much they need to borrow based on their own individual financial situation.  This year, the full amount will be processed.  You may request less than the amount listed on your award letter by e-mailing the amount you wish to borrow to financialaid@nnu.edu.

Please remember the financial aid package is based on one academic year at a time. The package represents  the aid that you are eligible to receive during the current academic year and you can apply for additional aid the following academic year by filling out a renewal FAFSA. An academic year is defined as August-July for Financial Aid purposes at NNU.

Currently there are two Federal Loans available, subsidized and unsubsidized. 

"Subsidized" means the interest on the loan is paid by the government while the student is enrolled at least half time.  No interest or principle payments are required until six months after the student graduates, withdraws from school, or drops below half-time status. Ability to participate in this program is determined by FAFSA results, which calculate your need. 

"Unsubsidized" means interest is accruing continuously from the day the funds disburse. You can choose to pay the interest while enrolled or defer it and add it to the principle of your loan, as long as you are attending at least half time.  If you do not qualify for the subsidized limit, students may receive an unsubsidized loan to make up the difference.  During the 2010-2011 academic year, this loan had a fixed 6.8% interest rate.  Fees of 0-3% are withheld from the borrowed amount by the lender or guaranty agency.  However, the student must repay the full loan amount.

Federal Direct Student Loan Limits 

Year in School

Dependent Students

Independent Students

Additional Unsubsidized Amount for Dependent / Independent Students

Freshman

$3,500

$3,500

$2,000 / $6,000

Sophomore

$4,500

$4,500

$2,000 / $6,000

Junior

$5,500

$5,500

$2,000 / $7,000

Senior

$5,500

$5,500

$2,000 / $7,000

Alternative Loans

Alternative loans are also available for students and are based upon credit worthiness, which means some students may need a co-signer. Check online for lender information and applications for alternative loans.

Repayment

For Federal Direct Student Loan Programs, loan repayment begins six months after you graduate, withdraw, or drop below half-time status for the loans you have borrowed while attending NNU. The exact schedule and amount of your repayment will not be known until your loan repayment begins. Check with the Department of Education for more information and loan repayment calculators to assist you in estimating your monthly payment. 

If you had student loans prior to attending NNU, please be aware that you may have already used your 6 month grace period for those loans. As soon as you graduate, withdraw, or drop below half-time status and even possibly with half-time status if you do not have a new loan for that year, you can enter repayment on those prior loans immediately.

For loan deferment options, it is best to contact the Department of Education. Please also contact the Department of Education regarding consolidation www.loanconsolidation.ed.gov. If you are unsure who your lender is, please contact the Financial Aid Office or log into www.nslds.ed.gov using your FAFSA pin number. This wesite will only show your federal student loan and grant history and does not include any alternative or outside loans you may have borrowed.