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 necessary. We 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.