DIRECT STUDENT LOANS

Beginning in the 2022-2023 financial aid award year, student borrowers will be required to view how much they currently owe in federal student loans, and to acknowledge that they have seen this amount, before a school can make a first disbursement of the first Direct Loan that a student borrower receives for each new award year. The Department of Education’s Informed Borrowing Confirmation process must be completed once each award year for the first loan a borrower receives for that award year, starting with loans associated with the 2021–22 Award Year. As of January 30, 2021, Northeast Alabama Community College's default rate is 15.8%. 

The Direct Loan Program provides financial aid through borrowing funds from the U.S. Department of Education. Any Student Loans will be submitted to the National Student Loan Data Systems (NSLDS). Repayment begins six months after the borrower leaves college or drops below half-time status. There is no separate application for student loans; the FAFSA application is all that is required to apply.

**In order to be eligible for a student loan, a student must be enrolled in a minimum of 6 credit hours in the student’s degree program and be meeting the standards of academic progress.**

**Students can access their loan information at NSLDS.**

Types of Loans

1) Subsidized Loans – interest free for a certain time period.

The U.S. Department of Education pays the interest on a Direct Subsidized Loan…

• while the student is in school at least half-time,
• for the first six months after you leave school (referred to as a grace period*), and
• during a period of deferment (a postponement of loan payments).

2) Unsubsidized Loans – interest bearing.

• The student is responsible for paying the interest on a Direct Unsubsidized Loan during all periods.

**Per federal regulations, a first-time college student is subject to a 30-day waiting period before loans are allowed to be disbursed.**

Applying for a Student Loan

• Submit the FAFSA application for the aid year you wish to attend at www.studentaid.gov.
• Complete all unsatisfied requirements on your MyNACC account.
• Once the award is complete (student will receive notification), you must accept your student loan on your MyNACC account.
• Once you have completed the steps above, go to www.studentaid.gov.
  
  1) Complete the Entrance Counseling (make sure to choose Northeast Alabama  
      Community College).
  
  2) Complete the Master Promissory Note (Subsidized/Unsubsidized Loan)
   
• 

EXIT COUNSELING

Who should complete exit counseling?
Students who have received subsidized, unsubsidized, or PLUS loans under the Direct Loan Program, must complete exit counseling each time the student drops below half-time enrollment, graduates, or leaves school. 

Where do you complete exit counseling?
To complete exit counseling, go to www.studentaid.gov and select "Manage Loans" and "Complete Exit Counseling". Click here to watch a quick tutorial on how to complete Exit Counseling.