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FINANCIAL AID:  Loans and Loan Counseling

FEDERAL PERKINS LOAN: A loan program available to students enrolled at least half-time who demonstrate financial need. Repayment and 5% interest begins nine months after you leave Northern. You may be allowed up to ten years to repay the loan.

FEDERAL STAFFORD LOAN: The Federal Stafford Loan is available through lending institutions to eligible students who demonstrate financial need. Effective July 1, 2007, undergraduate students may receive a loan up to the amount of need, but not more than $3500 for freshman, $4500 for sophomores, and not more than $5500 per year for the remaining years of undergraduate study. Graduate students may not receive more than $8500 per year. The amount of the loan may not exceed the cost of attendance minus your expected family contribution and other financial assistance you are eligible to receive.
The interest on the Federal Stafford Loan, which is a fixed rate of 6.80%, is paid by the federal government until six months after graduation or when you are no longer enrolled at least half-time. There may be up to 2.5% in origination and default fees deducted from the loan.

UNSUBSIDIZED FEDERAL STAFFORD LOAN: The Unsubsidized Federal Stafford Loan is similar to the regular Federal Stafford Loan except for the following: 1) need is not a factor; you may borrow to replace your expected family contribution, and 2) interest accrues and may be capitalized or paid during school and grace periods. The interest rate is fixed at 6.80 %. The loan limits are the same as the Federal Stafford Loan, but the total combined amount cannot exceed the annual limits.

FEDERAL PLUS LOANS: Federal PLUS Loans are available to parents of dependent students. A parent cannot borrow more than the student budget minus any other financial aid for the loan period. The interest rate is a fixed rate at 8.50%. Repayment on the Federal PLUS Loan generally begins within 60 days after disbursement with a minimum monthly payment of $50.00. Your parents may be allowed up to ten years to repay the loan. Contact the Financial Aid Office to request an application.

ADDITIONAL UNSUBSIDIZED FEDERAL STAFFORD LOAN ELIGIBILITY: Independent students may borrow additional Unsubsidized Federal Stafford Loan if they have already received the maximum Federal Stafford/Unsubsidized Federal Stafford Loan based on their current grade level. Freshmen and Sophomores may receive an additional $4000 in Unsubsidized Loan, Juniors and Seniors an additional $5000, and graduate students an additional $12,000. A student cannot borrow more than the cost of attendance minus other financial aid. Interest rate and repayment provisions are identical to the regular Unsubsidized Federal Stafford Loan program.

ALTERNATIVE LOAN PROGRAMS: In addition to the federal aid programs listed above, there are several alternative loan programs available for students and/or parents to borrow. The eligibility criteria, loan limits, interest rates, and repayment terms will vary from one program to the next. Please contact the Financial Aid Office if you would like further information about the various programs available.

finaid@northern.edu   •  1200 S. Jay Street, Aberdeen, South Dakota 57401  •   1-800-NSU-5330

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