Federal Direct Loan
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:
- Complete Stafford Entrance Loan Counseling for the Direct Lending program.
- Complete a serial Master Promissory Note with the Direct Lending program.
- If you are borrowing a GRAD PLUS Loan, you will have to complete a new PLUS Master Promissory Note every year.
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 firstname.lastname@example.org.
As a graduate student, please remember the financial aid package is based on one academic year at a time and not on your entire cohort charge (if you are in a cohort based program). 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.
Year in School
Additional Unsubsidized Amount for Dependent / Independent Students
Graduate PLUS Loan
Graduate and professional degree students can borrow a Direct PLUS Loan to help cover additional education expenses that the subsidized and unsubsidized loans do not cover.
Terms and conditions include:
- a determination that you (the applicant) do not have an adverse credit history,
- a 2.5% origination fee will be deducted from the original loan amount,
- a fixed interest rate of 7.9% will accrue while you are in school and,
- before you can receive a PLUS Loan, you must have determined your maximum eligibility for Direct subsidized and unsubsidized loan funding.
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.