Financial aiD
Educational Loans
Direct Loans are low-interest loans for students and parents to help pay for the cost of a student's education after high school. The lender is the U.S. Department of Education rather than a bank or other financial institution. Direct Loans can be Subsidized or Unsubsidized. Loans taken in the name of the parent are called "PLUS" loans.
A student may also take out an Alternative Loan through the Financial Aid Office at New Hope Christian College. Alternative loans are not a part of the Federal Direct Loan Program and carry different rates and regulations than standard student loans.
Subsidized Direct Loan
Subsidized Loans are awarded based on need determined by a federal formula applied to information students supply on the FAFSA. The government pays the interest on subsidized loans.
- Interest Rate: 4.5%
- Loan is in student's name.
- Interest is paid by the government while the student is in school.
- Payments can be deferred in special circumstances.
Unsubsidized Loans are not awarded based on financial need. Any student not in default can take out an unsubsidized loan up to their loan limits. The student does not have to pay the interest on unsubsidized loans while the student is in school.
- Interest Rate: 6.8%
- Loan is in student's name.
- Payments can be deferred in special circumstances.
PLUS Loans (Parent Loans)
PLUS loans are used to cover educational expenses not covered by Direct Loans. These loans are only available to parents of dependent students.
- PLUS Loan rates are generally better than most other non-educational loans available.
- Loan is in parent's name.
- Can be used to cover entire student budget.
- Loan amounts are set by NHCC.
- 7.9% APR
Alternative loans can be taken out by the student if there are still costs to be covered after Stafford Loan limits are reached. These loans are not governed by the same regulations of Stafford and PLUS loans. If the student does not have sufficient credit built up, a co-signer will be required.
- Loan is in student's name.
- Can be used to cover entire student budget.
- Loan amounts are set by NHCC.
- Variable Rate