Direct Loan Information
To receive your first William D. Ford Federal Direct Loan at Northwest State Community College, you must complete an Entrance Counseling and Master Promissory Note (MPN). The Entrance Counseling process ensures that you have a full understanding of the rights and responsibilities you will incur upon accepting this loan. The MPN will serve as your authorization to borrow loans through the Direct Loan program.
Federal regulations require the maximum annual Federal Stafford Loan amount an undergraduate student may borrow to be prorated in cases where it is known that the student’s remaining period of study will consist of less than one (1) Academic Year.
- The prorated amount the student may borrow in this period of study is based on a ratio of the number of credits enrolled divided by 24. This amount is then multiplied by the student’s annual loan limit (based on dependency status and grade level) to determine the maximum the student may borrow in their final term of undergraduate study.
- Stafford Loan eligibility will be prorated based on enrollment after drop/add period expires (first week of class).
Direct Subsidized Loans
Are awarded based on financial need as determined by the results of your FAFSA. The federal government pays the interest while you are in college, and for the first six months after you graduate, leave school, or drop below half-time.
Direct Unsubsidized Loans
For all eligible students (those who have completed a FAFSA), regardless of financial need. You are responsible for paying the interest. You can either let the interest accumulate or pay the interest while you are in school with no penalty.
Direct Parent PLUS Loan
This loan is for parents of dependent students. Parents may borrow up to the cost of education less other financial aid, including any Direct Loans the student may be eligible to receive. The repayment of this loan begins 60 days after the funds have been fully disbursed to the student’s account.
Parent PLUS Loan Borrowers
Federal PLUS Loans enable parents with good credit histories to borrow in order to pay the education expenses of their children. To be eligible, the child must be a dependent undergraduate student enrolled at least half time. The yearly borrowing limit on the PLUS loan is equal to your cost of education minus any other financial aid you receive.
The current interest rate and loan fee percentage can be found at https://studentaid.ed.gov/sa/types/loans/plus/parent. The loan fee is deducted from each disbursement and is paid directly to the lending institution. Repayment generally begins at 60 days after the final loan disbursement. There is no grace period. This means that the interest begins to accumulate at the time of the first disbursement and repayment of both interest and principal begins while the student is in school.
The parent applying for the loan will need their FSA ID, the student SSN, date of birth, two references, complete with street address, city, state, zip, phone, and if applicable, email address. References are not co-signers, they are people who can assist the department of education should they need to reach you regarding questions on your loan.
How to apply:
- Complete the Free Application for Federal Student Aid (FAFSA). The FAFSA information will be sent to your school’s financial aid office. Northwest State’s school code is 008677.
- Submit any requested tax documents and any other request information. Once finalized, your Financial Aid Award Notification will be sent to your student email account. To view and accept your awards, you will need to log into your myNSCC account.
- Complete the PLUS Loan Application. The application authorizes the Department of Education to do a credit check. You can only borrow up to the cost of attendance less any other financial aid that the student accepts. Parents will need their own FSA ID to log into the site.
- Complete the Federal Direct PLUS Master Promissory Note on the Department of Education website. Parents will need to log in and sign the MPN with their FSA ID.
- You will receive a credit decision from the Department of Education by email or regular mail. Denied borrowers will receive a co-signer/endorser addendum application. If you choose not to appeal or get a co-signer your student may be eligible to receive additional Direct Unsubsidized Loan.
- Borrowers who use a co-signer/endorser or who successfully appeal the credit decision must complete PLUS Counseling at www.studentsloans.gov before the loan can be disbursed.
The Federal Direct PLUS Loan will not disburse to the students account until the scheduled disbursement day for the term. Please see the academic calendar for specific disbursement dates. In order for the PLUS loan to disburse, all the loan requirements must be completed and accepted (PLUS MPN and PLUS Counseling as needed).
Excess PLUS Loan Funds:
On the PLUS Loan Application you can choose to release any excess PLUS Loan funds directly to the student or have it sent to you as a paper check. If you choose to have the excess PLUS Loan funds to be sent to the student, it will be sent via the refund method that the student elected through their refund preference.
As of January 2011, Northwest State Community College is no longer participating in any private loan programs. Please contact the NSCC Financial Aid Office to see if you have any additional Federal Direct Subsidized or Unsubsidized Loan eligibility to help fund your college education.