Loans

Student loan programs offer long-term, low-interest educational loans which require repayment. Students should carefully consider the amount of debt they incur and recognize their future financial obligations. Like any other debt, a student loan is a serious financial obligation.

Federal Direct Loans The Federal Direct Loan program enables students to borrow money directly from the federal government. The U.S. Department of Education is the lender and delivers the loan money to you through NCTA. Federal Direct Loans are made to students attending school at least half-time. Annual and aggregate loan limits vary depending on a student's grade level and dependency status. For more information on Federal Direct Loan annual and aggregate loan limits, go to the Department of Education website.

There are two types of Federal Direct Loans - Subsidized and Unsubsidized. A student qualifies for a Federal Direct Subsidized Loan based on financial need, as determined under federal regulations. A student's need is not a factor in determining eligibility for a Federal Direct Unsubsidized Loan. It is possible for a student to have a Direct Subsidized and Direct Unsubsidized Loan for the same award year. A student can borrow a combination of loans based on the cost of education minus other financial aid up to maximum annual loan limits and/or cost of education. Important - Federal Direct Unsubsidized Loans have many of the same terms and conditions as the Federal Direct Subsidized Loan (i.e., loan limits, origination/insurance fees, and deferments). However students are responsible for the interest during in-school, grace and deferment periods. Interest accruing during those periods may be paid or capitalized as agreed to by the borrower and the servicer.

Federal Direct Subsidized Loan

  • Interest Payments while in school, grace period or deferment - The federal government does not charge interest on subsidized loans while you are enrolled at least half-time, during the 6 month grace period*, or during deferments
  • Interest Rate Please visit the Department of Education website
  • Origination Fee Please visit the Department of Education website
  • Up-front interest rebate (repayment incentive)- 0.0%
  • Grace Period before repayment begins - 6 months
  • Repayment - Begins after you graduate, leave school, or drop below half-time enrollment. Repayment plans are Standard, Extended, Graduated, Income Contingent and Income-Based.
  • Exit Counseling - UNL must ensure that students who have borrowed Direct Loans receive exit counseling before they leave school. To satisfy this requirement, you should visit studentloans.gov and complete Exit Counseling. Students should complete exit counseling shortly before graduating or ceasing at least half-time enrollment.
  • Cancellation/Forgiveness provisions - Under certain circumstances, the federal government will forgive all or a portion of a Direct Loan for Teachers or Public Service Employees. For more information, visit https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation
  • If you are a first-time borrower on or after July 1, 2013, there is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized Loans. This time limit does not apply to Direct Unsubsidized Loans or Direct PLUS Loans. If this limit applies to you, you may not receive Direct Subsidized Loans for more than 150 percent of the published length of your program. This is called your “maximum eligibility period.” Your maximum eligibility period is generally based on the published length of your current program. You can usually find the published length of any program of study in your school’s catalog.

For example, if you are enrolled in a two-year associate’s degree program, the maximum period for which you can receive Direct Subsidized Loans is three years (150 percent of 2 years = 3 years).”

If you have been awarded a Federal Direct Loan as part of your financial aid package, please click here for specific information about the Federal Loans.

Federal Direct Unsubsidized Loan

  • Interest Payments while in school, grace period or deferment - The student is responsible for paying all interest on Unsubsidized Loans beginning the day the loan is disbursed. * Interest Rate Please visit the Department of Education website
  • Origination Fee - Please visit the Department of Education website
  • Up-front interest rebate (repayment incentive)- 0.0%
  • Grace Period before repayment begins - 6 months
  • Repayment - Begins after you graduate, leave school, or drop below half-time enrollment. Repayment plans are Standard, Extended, Graduated, Income Contingent and Income-Based.
  • Exit Counseling -NCTA must ensure that students who have borrowed Direct Loans receive exit counseling before they leave school. To satisfy this requirement, you should visit studentloans.gov and complete Exit Counseling. Students should complete exit counseling shortly before graduating or ceasing at least half-time enrollment.
  • Cancellation/Forgiveness provisions - Under certain circumstances, the federal government will forgive all or a portion of a Direct Loan for Teachers or Public Service Employees. For more information, visit http://studentaid.ed.gov.

If you have been awarded a Federal Direct Loan as part of your financial aid package, please click here for specifc information about the Federal Direct Loans.

Federal Direct PLUS Loans

The Federal Direct PLUS Loan Program assists eligible parents in meeting educational expenses. The Federal Direct PLUS Loan allows parents to borrow up to the cost of attendance minus other resources. The U.S. Department of Education is the lender and delivers the loan money to you through NCTA. Students must be attending school at least half-time to be eligible.

  • Interest Payments while in school, grace period or deferment - Interest is charged on PLUS loans beginning the date the money is applied to the student's school account. Interest is charged only on the portion of the loan that has been received. Interest is not charged on portions of the loan that have not been received.
  • Interest Rate Please visit the Department of Education website
  • Origination Fee Please visit the Department of Education website
  • Up-front interest rebate (repayment incentive)- 0.0%
  • Grace Period before repayment begins - None
  • Repayment - Begins 60 days after the entire Direct PLUS Loan is disbursed for a school year. For PLUS loans made to parents that are first disbursed on or after July 1, 2008, the borrower has the option of beginning repayment on the PLUS loan either 60 days after the loan is fully disbursed or wait until six months after the dependent student on whose behalf the parent borrowed ceases to be enrolled on at least a half-time basis. Generally, monthly payments will include both a portion of the loan principal and the interest that is owed on the loan principal for that month. Repayment plans are Standard, Extended, and Graduated.
  • Exit Counseling - Not applicable
  • Cancellation provisions - Not applicable

If you have been awarded a Federal Direct PLUS Loan as part of your financial aid package, your parent can apply for the Federal Direct PLUS Loan online at studentaid.gov (your parent would need to login with their FSA ID). For more details about the Federal Direct PLUS Loan, visit https://studentaid.ed.gov/sa/types/loans/plus/parent.