William D. Ford Federal Direct Student Loan Program
Northern Essex Community College participates in the William D. Ford Federal Direct Student Loan program administered by the U.S. Department of Education and NECC. This means that the loan listed on your award letter is a loan you will borrow directly from the federal government. Loans are financial assistance that must be repaid after you leave school or drop to less than six credits.
In order to receive these funds you must complete a promissory note. The promissory note is the legal agreement you make to borrow and repay this money. In addition to the completion of the promissory note, all first time borrowers at Northern Essex Community College must complete an entrance counseling session.
Loan Disbursement
Once you have completed your promissory note and entrance counseling (if required) your loan will be processed. Loan funds are disbursed after all students' eligibility for financial aid funds have been verified and the business office applies financial aid funds to students' accounts. This is typically done around the middle of the semester. Students who have credit balances after their charges have been paid will be eligible for a refund check. Please note that the amount of money that will be disbursed is approximately .5% percent less than the amount of the loan award. This guarantee fee is deducted by the Department of Education to help support the cost of this low interest loan. If you withdraw from the college or drop below six credits before your loan is disbursed, you may not be eligible for the loan funds. Check with the Financial Aid Office before withdrawing or reducing your course load to less than six credits.
Leaving School or Falling Below Six Credits
This will begin the 6-month grace period leading to repayment of your loan(s). You must complete an Exit Interview. If you return to NECC or another school on a half-time or more basis you should file a deferment form which will tell the servicing agency that you are able to postpone repayment of your loan.
Repayment
The Direct Loan Servicing Center will contact you at your last known address to inform you about going into repayment. They will also send you either a monthly statement or book of coupons to use each month. You are responsible for notifying the servicer and the Financial Aid Office of any changes to your name or address. Failure to make payments may result in a default that will affect your ability to obtain further financial aid at any school and will directly impact your ability to obtain consumer credit in the future.
Borrowing money for your education is a serious and binding legal obligation. You are advised to use care in determining if and how much you should borrow. Please do not hesitate to ask for assistance or advice in making this decision. Your loans are a part of your present and your future.
If you have any questions about the loan or loan processing, or do not understand the information provided, please contact the Financial Aid Office by email at aid@necc.mass.edu and a financial aid counselor will respond within one business day. (Please note: it may take more than one day if you are emailing us during peak enrollment periods – August to mid September, and January to mid February.
For additional information on direct loans, please click the link below
http://www.ed.gov/offices/OSFAP/DirectLoan/index.html
