Student Loans

Northeast Iowa Community College participates in the U.S. Department of Education's federal student loan program. The three types of Federal Student loans include:

  • Federal Direct Subsidized Loan: Low-interest educational loan offered by the federal government awarded on the basis of need. The federal government pays the interest while the student is enrolled at least half-time.

  • Federal Direct Unsubsidized Loan: Low-interest educational loan offered by the federal government not awarded on the basis of need. The student is responsible for all interest, which occurs during any enrollment, grace, deferment or forbearance period. Students can choose to pay the interest or allow it to accumulate. If it accumulates, it will be capitalized and added to the principal amount of the loan increasing the repayment amount.

  • Federal Direct PLUS (Parent) Loan: For eligible parents of dependent students. Apply online at StudentLoans.gov.

For both the Federal Direct Subsidized and Unsubsidized loans, repayment begins six months after graduation or when the student drops below half-time enrollment. The federal government withholds an origination fee from the amount borrowed.

Be a Responsible Borrower

How to Apply for a Federal Direct Student Loan

If eligible, students may apply for the loan as long as they are enrolled and attending at least half-time (minimum six credits). All students wishing to borrow will have to have completed the following steps, including federal requirements:

  1. Complete the FAFSA in order to determine your loan eligibility
  2. View MyCampus  > Self Service for Students > Financial Aid and complete your Financial Aid Checklist
  3. Receive email notice that your NICC Award Letter is ready to view
  4. Decide if, and how much you need to borrow, according to your personal educational budget
  5. In Self Service Financial Aid, "Review and accept your Financial Aid Award Package" to view the loans that are being offered to you
  6. Request the actual amount you want to borrow for each semester by logging into eForms and completing the Federal Direct Loan Application eForm
  7. Once processed, loan proceeds are first applied to a student's account for tuition and fee charges along with any book store charges. Credit Balance refunds are processed through the Business Office starting 30 days after the semester begins.

* Additional requirements for new or first time Federal Student Loan Borrowers include:

Complete Entrance Counseling - Online tutorial regarding borrower's rights and responsibilities (i.e., interest rates, budgeting and repayment arrangements, etc.)

Complete Subsidized / Unsubsidized Master Promissory Note (MPN)- A legal document in which you promise to repay your federal student loan(s) and any accrued interest and fees to your lender or loan holder.

Loan Exit Counseling Requirement

Students that have received loans must complete Exit Counseling each time you:

  • Graduate
  • Drop below half-time enrollment (six credits)
  • Stop attending or drop out of college completely

Exit counseling may be completed online at the studentaid.ed.gov site or in person at NICC with a Financial Aid Enrollment Advisor.

Who do I pay my loans to? - Loan Servicer

All students who receive Federal Direct Student Loans will be contacted by a loan servicer. It is the student's responsibility to maintain communication with the servicer regarding the status of his or her loans. NICC recommends that students create an online account with their loan servicer right away in order to manage loan debt, track interest and communicate regularly, regarding repayment options. Learn who services the loan at National Student Loan Data System (NSLDS). Questions regarding loan servicing available at studentaid.ed.gov.

Private Student Loan Options

  • Private student loans may be available to students who meet Lender criteria
  • May require creditworthiness and/or co-signer
  • Please visit FASTChoice to learn more, complete "Borrowing Essentials" and to apply.

Help with your loan repayment - Inceptia Partnership

Inceptia Logo, a division of NSLPThe College partners with Inceptia, a division of National Student Loan Program (NSLP), to provide students with free assistance on Federal student loan obligations to ensure successful, and comfortable, loan repayment. Inceptia’s customer representatives may contact students during the grace period to answer questions about loan obligation and/or repayment options or delinquent loans.

Inceptia is not a collection agency. They help students explore a variety of possibilities such as alternative repayment plans, deferment, consolidation, discharge, forgiveness, and forbearance options. Inceptia will communicate via phone calls, letters, and/or emails to answer questions and find solutions to student issues. For additional resources including information on repayment options, please visit Inceptia’s Federal Student Loan Overview website.