Federal Stafford Loans
What are Stafford Loans?
In order to determine your eligibility for a Federal Stafford Loan, you will need to complete a Free Application for Federal Student Aid (FAFSA).
Stafford Loans are either subsidized or unsubsidized. You can receive a subsidized loan and an unsubsidized loan for the same enrollment period.
A subsidized loan is awarded on the basis of financial need (determined by your FAFSA results). You won't be charged any interest before you begin repayment or during authorized periods of deferment. The federal government "subsidizes" the interest during these periods.
An unsubsidized loan is not awarded on the basis of need. You'll be charged interest from the time the loan is disbursed until it's paid in full. If you allow the interest to accrue (accumulate) while you're in school or during other periods of nonpayment, it will be capitalized—that is, the interest will be added to the principal amount of your loan, and additional interest will be based on that higher amount.
When do I pay back these loans?
After you graduate, leave school, or drop below half time (6 credits) enrollment, you have six months before you begin repayment. This period of time is called a "grace period."
How do I get this loan?
North Central's Financial Aid Office will send you an award letter indicating the amount and type of Stafford Loan you are eligible to borrow. Once you receive your award letter, you must complete the following procedures if you wish to borrow your Stafford Loan:
- Complete entrance counseling online.
- Choose a lender from our Recommended Lender List, or another lender of your chosing, and complete a Master Promissory Note (MPN) online.
- Return your award letter to the NCU Financial Aid office to request the amount you want to borrow.