Frequently Asked Questions: Financial Aid

If you are a US citizen or permanent resident, you can apply for federal financial aid by completing and submitting the FAFSA. This can be done by going through studentaid.gov

You’ll need your Social Security number (SSN) (if applicable) and your own email address to create an FSA ID. An FSA ID consists of an account username and password that you create in order to gain access to the US Department of Education’s online systems, including studentaid.gov. An FSA ID can also serve as your legal signature when completing electronic documents.

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Yes, in order to receive federal financial aid, you need to complete the FAFSA every year.  The FAFSA for the coming academic year is typically made available beginning on October 1st.  We advise NECO students to complete the FAFSA for the coming academic year by the priority deadline, April 1st.

In order to be eligible to complete the FAFSA you must:

• be a US citizen or an eligible noncitizen;
• have a valid Social Security number (with the exception of students from the Republic of the Marshall Islands, Federated States of Micronesia, or the Republic of Palau);
• be enrolled, or accepted for enrollment, as a regular student in an eligible degree or certificate program;
• maintain satisfactory academic progress in college or career school;
• sign the certification statement on the FAFSA form stating that you’re not in default on a federal student loan, you do not owe money on a federal student grant, and you’ll only use federal student aid for educational purposes.

Students must maintain a minimum GPA of 2.25 to receive federal financial aid. If students fail to meet this requirement, they will go through periods of financial aid warning, followed by probation if the minimum GPA is not met. More detailed information on NECO’s Satisfactory Academic Progress (SAP) can be found in the Financial Aid Handbook.

You will receive an email from the NECO Financial Aid Office with your financial aid offer, as well as the College Financing Plan (1st year only) with a breakdown of the cost of attendance budget. In order to accept your offered financial aid, you will need to sign and return the aid letter to the Financial Aid Office.

Before your loans can be disbursed, you must complete a promissory note and Entrance counseling.

The master promissory note (MPN) is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the US Department of Education. It explains all the terms and conditions of your loan(s). 

The Entrance counseling is designed to inform you of your rights and responsibilities as a student loan borrower.

The MPN can be used for up to ten (10) years to make additional loans.

Your awarded financial aid will be directly disbursed to your NECO account.  You will receive an email when the aid has been created and disbursed.

Loan refunds are processed once a week, and made available every Friday starting on the Friday before the beginning of each semester.  The Business Office will notify you when a refund is available.

Federal Direct Unsubsidized Stafford loan: $40,500 for first year.  $44,944 for second and third year.  $47,167 for fourth year.

Graduate PLUS loan: This is a credit-based loan. The maximum Grad PLUS loan amount you can borrow is the cost of attendance (determined by the school) minus any other financial assistance you receive.

Federal work study: $1,000 to $3,000 depending on year in program

NECO offers need-based low interest loans such as the Health Professions Student Loan (HPSL), Loans for Disadvantaged Students (LDS), and the Funds for Education Loan (FFE).

You must provide parents information to qualify for these programs, even if you are an independent student. This requirement cannot be waived.

You must complete a FAFSA before applying for the Grad PLUS loan.  The Grad PLUS loan application can be found online by going through studentaid.gov.  Once you submit the application, NECO will receive a copy of the application within 48 hours.

If your PLUS loan application was denied, you can:

• File an appeal to ask for additional review. 
• Obtain an endorser or cosigner. 
• You can also look to apply for a private student loan by going through a private lender instead of a PLUS loan, but you may need to secure a co-signer for a private student loan if you were already denied a PLUS loan.

You will need to go through studentaid.gov regardless of the decision you choose. You would also need to complete the PLUS credit counseling.

Yes, there are fees for federal student loans, specifically the loan origination, or offset, fee.  This fee comes out of the amount of money that is disbursed (paid out) to you while you’re in school. This means the money you receive will be less than the amount you actually borrow.

You’re responsible for repaying the entire amount you borrowed and not just the amount you received.

The current interest rate for Direct Unsubsidized Loans first disbursed on or after July 1,2024, and before July 1,2025, is 8.08%.  

The interest rate for Direct PLUS Loans first disbursed on or after July 1, 2024, and before July 1, 2025 is 9.08%.

For the Stafford and Grad PLUS loans, interest begins accruing on your loans on the day the funds are disbursed to your NECO account. 

You have a six-month grace period once you graduate or withdraw from NECO before your federal unsubsidized and/or PLUS student loans enter their repayment cycle.

Private, or alternative, loans are student loans not tied to completing the FAFSA.  Instead, they are student loans provided by private organizations, such as Sallie Mae, SoFi, and Citizens Bank, each with their own application.  Private student loans can have a wide range of interest rates and repayment options for when you graduate, so you will want to shop around to find the best option for you if you choose to apply for a private student loan.

For private student loans, you will need to go through the application process for whichever private lender you go through.  NECO does not have a list of preferred lenders, but you can compare the loan options and information from different lenders to make your best-informed decision.

The Cost of Attendance (COA) is your estimated budget, including direct and indirect costs. The COA includes tuition and fees; living expenses; estimated allowances for books and equipment; transportation; loan fees; and miscellaneous/personal expenses.  You cannot receive financial aid above the cost of attendance budget.

If you have extenuating circumstances, NECO provides limited increase in compliance with federal regulations. These expenses can be included if they are higher than the standard cost of attendance budget.  Increases must be educational in nature, must be incurred during the academic year and must be within reason.

Additional costs are covered by loans only.

Here are some expenses often considered for adjustments:

• Dependent Care expenses, not covered by a third party
• NECO Student health insurance cost, if not waived
• The cost of uninsured medical, dental, or optical expenses that exceeds your personal expense allowance
• One-time computer purchase during the program of study (not to exceed $2,500)
• Rotation transportation expenses that are not already covered in the cost of attendance
• Other allowable expenses that are determined by the Financial Aid Office to be required for your program.

If you find that the initial financial aid package you receive does not cover your tuition and fees for the academic year, then you could look to either apply for a Grad PLUS Loan or a private student loan.

Federal financial assistance is not available to international students.   International students can look to apply for private student loans as long as they have a U.S. citizen or permanent resident as a co-signer.  You can find and compare loans using the FinAid website.

Canadian students can apply for Canadian Government loans and for lines of credit through their bank.

NECO provides on-campus work study opportunities for international students from institutional funding.