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

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. For more details on Federal Student Loans visit the website.

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 halftime (minimum six credits). All students wishing to borrow will need to complete the following steps:

  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 steps
  3. Receive your email notice that your NICC Aid Offer is ready to view
  4. Decide if, and how much you need to borrow, according to your personal educational budget and the offered loans
  5. Request the actual amount you want to borrow for each semester by logging into eForms and completing the Federal Direct Loan Application eForm
  6. Once processed, loan proceeds are first applied to a student's account for tuition and fee charges along with any textbook charges. Credit Balance refunds are processed through the NICC Finance Office starting approximately 30 days after the semester begins.

* Two additional requirements for new/first time Federal Student Loan Borrowers include:

  1. Complete Entrance Counseling - Online tutorial regarding borrower's rights and responsibilities (i.e., interest rates, budgeting and repayment arrangements, etc.)
  2. 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.

Private Student Loan Options

  • Explore Federal Direct Loans options prior to private student loans 
  • 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.

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 site or in person at NICC with a Financial Aid Enrollment Advisor. Direct Loan Exit Counseling Guide - Federal Student Aid

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. Help managing your student loans can be found at the website.

Cohort Default Rates

The U.S. Department of Education tracks and publishes college's student loan default rates (CDR). Students who enter student loan repayment in one year and default anytime over the next 3 years are included in the CDR for that fiscal year. NICC historically has low rates as shown from the last three years of published data.

Cohort Fiscal Year Official Default Rate National Average (CC)
2020 0.0% 0.0%
2019 3.0% 3.7%
2018 8.7% 11.5%

For more details on cohort default rates and student loans, visit the Student Aid website or visit the NICC Financial Aid Office.

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.