Information on Student Loan Programs

In July, 2004 the NEIU Financial Aid Office created a Default Aversion Plan with the assistance of the National Association for Financial Aid Administrators and the Department of Education. The objective of the Default Aversion Plan is to reduce the University’s cohort default rate to 5%. In so doing, the NEIU Financial Aid Office has a commitment to educating students on being credit smart, budget wise and good managers of their student loans.

Strategies to avert default

Students who indicate a preference for Federal Work Study and later reject it in order to borrow, must provide the Financial Aid Office with a written statement articulating the reason(s) necessary to borrow.
First-time, first-year NEIU students are required a delay in the delivery of the first disbursement of a loan for 30 days.
Independent students who reside with their parents or other relatives will automatically receive a reduced budget. Students can appeal this with a written request outlining reason(s) for budget reconsideration. In addition, an itemized budget of income and expenses along with a lease must be attached.
Students with recent reinstatement of Title IV assistance due to prior default status, must wait one full award year to borrow through the Perkins or Stafford Loan program.
NEIU does not offer Stafford Loan during its summer term – students may qualify for Perkins Loans – with the exception of the following circumstances: (1) approved summer study abroad programs and (2) verified summer or fall graduation.

NEIU Participates in the following student loan programs

Carl D. Perkins Federal Student Loan (campus based; award criteria based on priority file)
Stafford Student Loan (lender must be selected)
Stafford Parent Loan for Undergraduate Students or PLUS (lender must be selected)
Alternative/Private Loans (Stafford Loan eligibility must be exhausted or student has ‘Student At Large’ – non degree seeking - academic status)

ANNUAL LIMITS FOR 2008-2009

	Subsidized	Unsubsidized Undergraduate Independent & Graduate/Professional
Freshmen	$3,500	$4,000
Sophomore	$4,500	$4,000
Junior/Senior/2nd BA	$5,500	$5,000
Graduate/Professional	$8,500	$12,000 (or up to COA)
Teacher Certification	$5,500	$7,000
PLUS		Cost of Attendance (COA)

NEIU Loan Disbursements
The NEIU Financial Aid Office receives most loan disbursements through electronic processing. All loan awards are assigned two disbursement dates – this also applies to one term loans. Two semester loans generally have scheduled disbursement dates of September 6 and January 16. One semester loans generally have disbursement dates that fall two weeks into the term and again after the add/drop period has ended. All loan disbursements are placed against the student’s account receivable. After any outstanding balance has been paid, the student is eligible to receive a refund for the ‘surplus’ amount.

NEIU on Consolidation
The NEIU Financial Aid Office recommends that students, who wish to consolidate, do so with a lender that currently holds one or more existing loans. In addition, since the Perkins Loan has a fixed interest of 5% it may or may not be advisable to consolidate this loan with others.

NEIU on Alternative Loans
The NEIU Financial Aid Office policy on alternative or private loans is that they be limited to those students who (1) have student-at-large academic status, (2) are not eligible for financial assistance under Title IV Financial Aid Programs and (3) have exhausted all Stafford eligibility. Our office recommends that students using alternative loans continue to use the same lender as their Stafford student loans.

Online Stafford Loan Entrance and Exit Counseling

Federal regulations require all recipients of Federal Stafford Loans to complete a loan entrance counseling session prior to receiving any loan funds. Borrowers must complete loan exit counseling when graduating, withdrawing from school, or attending less than half-time.

About 34% of NEIU’s 2005-2006 graduating class borrowed a student loan while at NEIU. The average loan indebtedness at graduation was $12,806. To avoid possible loan default and damage to your credit score rating, NEIU strongly encourages you to borrow wisely and only the minimum amount you need to meet school expenses.

To begin your session, click on the Entrance or Exit link below. When you've successfully completed the interview process, NEIU will be notified electronically. Be sure to print a copy of the Confirmation Page for your records.

        • Stafford Entrance
        • Stafford Exit