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.
Need Help?
Video Tutorials
Budgeting Video
Borrowing a Loan
Managing a Loan
Repayment Estimator