Federal Direct Stafford Loan
The Direct Stafford loan is a low-interest federal loan that is made to the student; the student is responsible for repayment. There are two types of Stafford loans: subsidized and unsubsidized. To qualify for a subsidized Stafford loan, a student must demonstrate financial need. The federal government pays the interest on subsidized Stafford loans while the student remains enrolled at least half-time. If a student does not demonstrate financial need, he or she will qualify for an unsubsidized loan. Unsubsidized Stafford loans accrue interest while the student is in school; the student may pay the interest periodically while in school or capitalize it and repay it along with the principal. Loan repayment begins six months after the student ceases to be enrolled at least half-time.
For 2012-2013, the interest rate for subsidized Stafford loans for undergraduate students only is fixed at 3.4%. The interest rate for all unsubsidized Stafford loans is fixed at 6.8%.
For more information about Stafford loans, including application instructions, please visit our Loans page.
Federal PLUS Loan
The Direct PLUS loan is a low-interest federal education loan available to graduate students and to the parents of dependent, undergraduate students to help pay for the student’s educational costs. Borrowers with no adverse credit history may apply for up to the cost of education (for one academic year at a time), less any other financial aid.
The interest rate for Direct PLUS loans is fixed at 7.9%; interest begins to accrue on the date of the loan's first disbursement. Loan funds are disbursed directly to NEC. Direct PLUS loan borrowers must also pay a loan origination fee of 2.5%. Note: your lender deducts this fee before disbursing any loan money, so the loan amount disbursed will be less than the required repayment amount.
For more information about PLUS loans, including application instructions, please visit our Loans page.
Federal Perkins Loan
The Federal Perkins loan is a low-interest (5% fixed) federal loan program for students with exceptional financial need. Recipients are required to sign a separate Perkins loan promissory before loan funds can be disbursed.
Private Student Loans
A variety of private/alternative loan options are available to undergraduate and graduate students and/or their families. Alternative loans are offered by private lenders and are usually credit-based. Borrowers should only use private loans as supplemental funding after having exhausted all other sources of financial aid.
When researching your loan options, it is advisable to take into consideration the loans’ interest rates as well as any origination, disbursement, and repayment fees. We are happy to answer questions or provide information as you work to identify the program(s) that best suit your family’s needs.
Lenders Who Have Made Private Loans to NEC Students
In order to better assist our students and families in their search for a private loan lender, we have compiled the following, comprehensive list of all lenders who have made private (non-federal) education loans to NEC students in the last 3 academic years. In offering this list, we do not endorse, recommend, or promote any lender; borrowers may select any lender, including those not on the below list.
Affinity PLUS Federal Credit Union
Boeing Employees Credit Union
Discover Student Loans
Liberty Bay Credit Union
The Main Loan
Massachusetts Education Financing Authority
NASA Federal Credit Union
Vermont Student Assistance Corporation
Alternative Financing Options
Tuition Management Systems
TMS is a private company not affiliated with NEC, that contracts with the Conservatory in order to offer students and families a monthly payment plan for paying direct educational costs (tuition, room, board, fees). This is not a loan program. There is a $90 enrollment fee to participate. For more information on TMS, call the NEC Business Office at 617-585-1221, or call TMS at 888-216-4258.
Private/External Grants & Scholarships
For additional information about private scholarships, please visit NEC's Scholarships page.