Federal Direct Loans

The most popular loans at North Shore Community College are the Federal Direct Loans. These funds are borrowed directly from the federal government. Loans are financial assistance that must be repaid and will be included in your award package. Students will need to make a decision on their Direct Loans through their myNorthshore accounts. The type of loan you are eligible for is based off your financial need determined by the information from the Free Application For Federal Aid (FAFSA). The Direct Loan interest rate for 2023-2024 academic year is 5.50%. There is a 1.057% origination fee deducted from the loan prior to the funds being disbursed to a student's account.  

In order to receive these loans, you must be enrolled in at least 6 credits and making Satisfactory Academic Progress. Repayment on the loans starts six months after you leave the school or drop below 6 credits (half-time enrollment). You can read more about the government loans at https://studentaid.gov/. There are two types of Direct Loans: the Subsidized Loan and Unsubsidized Loan.

Direct Subsidized Loan
This is a need-based loan through the Federal Government. The government will pay the interest while the student is attending school at least half-time. The federal government limits the amount you can borrow. A first year student with 0 to 29 college credits is eligible for $3,500. Second year students with 30 or more credits can borrow $4,500. You may not receive a subsidized loan for more than 150% of the length of your program. *

Direct Unsubsidized Loan
This is a non-need based loan. All students regardless, of need and grade level are eligible for additional unsubsidized loan funds of $2,000. Independent students will receive $4,000 in addition to the $2,000. This loan does accrue interest while the student is in school and is considered more expensive. 

* Please note that switching from an associate degree to a one-year certificate may limit your subsidized loan funds. Also, not completing your program by the 150% point could result in your subsidized loans to begin accruing interest. For example, if a student is in an associate degree and they have used all 3 years of subsidized loan eligibility without graduating and remain enrolled, their subsidized loans will begin accruing interest while they are attending. More information is provided during Entrance Loan Counseling and at www.studentaid.ed.gov.

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Budgeting Video 
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Managing a Loan 
Repayment Estimator 

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