Federal Direct Loans | Northcentral Technical College

Federal Direct Loans

Direct Loans replaced the Federal Family Education Loans (FFEL Stafford/PLUS loans) starting with the 2010 summer semester.


Direct Loans are:

  • Simple—You borrow directly from the federal government and have a single contact—the Direct Loan Servicing Center—for everything related to the repayment of your loans, even if you receive Direct Loans at different schools.
  • Convenient—You will have online access to your Direct Loan account information 24 hours a day, seven days a week via Direct Loan Servicing online at https://www.myedaccount.com/. – need new hyperlink because website changed!
  • Flexible—You can choose from several repayment plans that are designed to meet the needs of almost any borrower, and you can switch repayment plans if your needs change.


You will be required to go to studentloans.gov, sign in with an FSA ID and complete these two steps before any loan funds will be disbursed to you:

1)     An electronic Master Promissory Note (eMPN) and

2)     Entrance Counseling (not Financial Literacy Counseling, which is recommended but optional)


Types of Direct Loans

  • Subsidized Direct Loans are awarded on the basis of financial need.  You will not be charged interest before you begin repayment or during authorized periods of deferment.
  • Unsubsidized Direct Loans are NOT awarded on the basis of need and do have a higher interest rate.  You will be charged interest from the time the loan is disbursed until it is repaid in full.  If you allow the interest to accrue (accumulate) while you are in school or during other periods of nonpayment, it will be capitalized.  This means that interest will be added to the principal amount of your loan, and additional interest will be based on that higher amount.
  • Additional Unsubsidized Direct Loans are NOT awarded on the basis of need.  If you are considered a dependent student for financial aid purposes, you may be eligible for up to $2,000 per school year.  If you are considered an independent student for financial aid purposes, you may be eligible for up to $6,000 per school year.  An independent student must meet one of the following criteria: turn 24 by December of the school year; be married or be a veteran of the U.S. Armed Forces; have children or dependents that receive more than one half of their support from you; be an orphan or ward of the court; were in foster care after the age of 13; be an emancipated minor; be a minor in legal guardianship; or been verified as an unaccompanied youth (homeless children or youth that are at risk of homelessness).

The maximum base loan amount awarded is determined by the number of credits a student has earned.  A first year student who has earned 0 – 24.9 program credits may be eligible for a maximum loan amount of $3,500.  A second year student who has earned more than 24.9 program credits may be eligible for a maximum loan amount of $4,500.  The number of credits a student has earned is determined at the time we certify the loan.


An enrollment status of half-time (6 credits) is required for student loans.  If you drop below half-time or terminate your enrollment, you may not be eligible to receive your loan disbursement.


An origination fee of one percent is deducted directly from the gross amount of the loan by the Department of Education.  The Department of Education provides a chart of current and previous Direct Loan Interest Rates.



  • Financial Aid