Types of Loans

Federal Direct Loan Program

The William D. Ford Federal Direct Loan Program provides low-interest, long-term loans through the College. Funding for these loans comes from the Department of Education, though the entity you deal with, your loan servicer, can be a private business. These loans may be Subsidized or Unsubsidized. 

At Naugatuck Valley Community College, federal loans are not automatically awarded. If you wish to apply for a loan, you must complete the in-house loan application, available at the Financial Aid Office. We advise students to wait for a complete review of their eligibility for other forms of (free) financial aid before considering submitting a loan application. We encourage our students to graduate from NVCC as close to debt-free as possible.

PLEASE NOTE: loans are easier to get than to repay--we urge all students not to borrow unless absolutely necessaryWe recommend that you visit the U.S. Department of Federal Aid's Student Aid page to learn more about loan debt. 

Types of Loans

Subsidized Stafford Loan & Unsubsidized Stafford Loan 

Eligible students must be admitted, in good academic standing, and enrolled in at least half time in a program leading to an eligible degree or certificate.

An Overview of Direct Subsidized Loans:

    • Direct Subsidized Loans are available to undergraduate students with financial need.
    • Your school determines the amount you can borrow, and the amount may not exceed your financial need.
    • The U.S. Department of Education pays the interest on a Direct Subsidized Loan:
      • while you’re in school at least half-time,
      • for the first six months after you leave school (referred to as a grace period*), and
      • during a period of deferment (a postponement of loan payments).

*Note: If you received a Direct Subsidized Loan that was first disbursed between July 1, 2012, and July 1, 2014, you will be responsible for paying any interest that accrues during your grace period. If you choose not to pay the interest that accrues during your grace period, the interest will be added to your principal balance.

An Overview of Direct Unsubsidized Loans:

    • Direct Unsubsidized Loans are available to undergraduate and graduate students; there is no requirement to demonstrate financial need.
    • Your school determines the amount you can borrow based on your cost of attendance and other financial aid you receive.
    • You are responsible for paying the interest on a Direct Unsubsidized Loan during all periods. 
    • If you choose not to pay the interest while you are in school and during grace periods and deferment or forbearance periods, your interest will accrue (accumulate) and be capitalized (that is, your interest will be added to the principal amount of your loan).

First time loan borrowers must complete the Entrance Counseling and Master Promissory Note (MPN) on https://studentloans.gov


Entrance Interview Requirement:

First time borrowing students are required to complete an entrance counseling session.  Included in this session is comprehensive information on the terms and conditions of the loan and of the borrower's responsibilities.  Upon acceptance of this loan students must complete their entrance interview at https://studentloans.gov By completing this exercise, you will have familiarized yourself with the Stafford Student Loan program.  This requirement needs to be fulfilled prior to disbursement of the loan.

Exit Interview Requirement:

Students who have borrowed under the Federal Stafford Student Loan program during their academic career at Naugatuck Valley Community College and have stopped attending based on graduation, withdrawal, or less than half time registered status must complete an exit interview. This counseling session will provide information on terms and conditions concerning repayment or forgiveness or deferment of the loan amounts that the student has incurred while attending Naugatuck Valley Community College. Upon ceasing enrollment please complete the exit interview process provided at: https://studentloans.gov.

Loan FAQs

Loans FAQs

If you are a first-time borrower on or after July 1, 2013, there is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized Loans. If this limit applies to you, you may not receive Direct Subsidized Loans for more than 150 percent of the published length of your program. This is called your “maximum eligibility period.” Your maximum eligibility period is generally based on the published length of your current program. You can usually find the published length of any program of study in your school’s catalog.


Naugatuck Valley Community College determines the loan type(s), if any, and the actual loan amount you are eligible to receive each academic year.  However, there are limits on the amount in subsidized and unsubsidized loans that you may be eligible to receive each academic year (annual loan limits) and the total amounts that you may borrow for undergraduate and graduate study (aggregate loan limits). The actual loan amount you are eligible to receive each academic year may be less than the annual loan limit. These limits vary depending on

  • what year you are in school and
  • whether you are a dependent or independent student.

For more information on loan limits, click here.

Your loan servicer will be assigned by the Department of Education after the first disbursement of your loan.  You can find out who your loan servicer is by logging on to your account at www.studentloans.gov.  You will contact your loan servicer with all questions regarding loan repayment, deferment, or forbearance.  You may also locate your loan servicer through the NSLDS website, by following these steps. 


There are several repayment options available that are designed to meet the individual needs of borrowers. Your loan servicer can help you understand which repayment options are available to you. Generally, you’ll have 10 to 25 years to repay your loan, depending on the repayment plan that you choose.Learn more about your repayment options.


Interest rates for all Federal Loans are fixed. For current interest rates, visit the U.S. Department of Education's website

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