Financial Aid Home > Loan Information

Loan FAQ

Who makes the loan?
Loans are made by the Department of Education.

 

How do I get a loan?
First you must complete your FASFA at www.fafsa.gov. In addition, federal regulations require borrowers undergo entrance loan counseling before receiving a loan each academic year. Exit loan counseling is required when the student ceases at least half-time enrollment.

 

Who is eligible?
A loan recipient must be enrolled at least half-time in a semester and show satisfactory academic progress.

When are loans paid back?
Repayment of these loans starts six(6) months after you cease to be enrolled or after you drop below half-time status.

 

Do I have to borrow the maximum amount?
NO! You should only borrow as much as you need. Remember, these loans DO have to be paid back!

 

What if I transfer to NCTC from another school? Will I be eligible for a loan?
A student who transfers in the middle of an academic year and has received his or her annual limit while at the transfer institution will not be eligible for a loan at NCTC until the beginning of the next academic year.

 

How often do I have to apply for a loan?
Student loan recipients must apply for financial aid each year. Student loans are packaged for each eligible student and included in his/her award letter. The student will need to accept their loan awards before certification by financial aid office will be submitted.

 

Which loan program does NCTC participate in?
The Direct student loan that consist of Stafford Subsidized Loan, Unsubsidized Stafford Loan, Federal Parent Plus Loan for undergraduate students are the only loans available at NCTC. NCTC does not participate in the following loan programs: Federal Perkins Loans.

 

What is the difference between subsidized and unsubsidized loans?
The Subsidized loan is need based and the government pays the interest during in-school status, grace periods and authorized deferment periods. The Unsubsidized loan is not need based and the borrower is responsible for paying the interest that accrues during these loan periods.

 

What is a Federal Parent Plus Loan?
The Parent Plus Loan is a fixed interest loan created by the federal government to help creditworthy parents pay for their dependent student's education beyond high school. Repayment begins 60 days after the loan is fully disbursed. Interested students must complete their financial aid file, complete Parent Plus application at https://studentloans.gov.