Loans

Federal Subsidized Loan
A Federal Subsidized Loan is awarded on the basis of financial need. Normally, no interest will be charged on the loan before repayment begins because the federal government “subsidizes” the interest during this period. However, for new borrowers beginning July 1, 2013 that subsidy will end after 150% of the published time for completion for the program you are in or once you are no longer enrolled half time in school.

Federal Unsubsidized Loan
A Federal Unsubsidized Loan is not awarded on the basis of need. The Federal Unsubsidized Loan provides financial assistance to all students regardless of income. You will be charged interest from the time the loan is disbursed until it is paid in full. (If the student allows the interest to accumulate it will be capitalized and added to the principal amount of the loan.)

Federal PLUS Loan
Creditworthy parents of dependent students can take out loans to supplement their children’s aid packages. The Federal PLUS loan program allows parents to borrow money to cover any costs not already covered by the students financial aid package, up to the full cost of attendance. PLUS loans are the financial responsibility of the parents, not the students. Dependent undergraduates may be eligible to borrow additional funds through the unsubsidized Federal Stafford Loan program if the parent is unable to obtain a PLUS loan because of exceptional circumstances or because the parent was denied a PLUS loan. PLUS Loan Repayment begins within 60 days after the last disbursement of the loan. Interest begins to accrue on the day of the FIRST disbursement.
Note: Student must max financial aid to allow for parent loan.

To initiate the PLUS Loan process please go to https://studentaid.gov/plus-app/parent/landing.
Once we have received notification of this process we will then mail the remaining documents needed based on credit approval.

Federal Default Cohort Rate for NWCC is currently 0%.

• Complete NWCC admission requirements and be enrolled in an eligible certificate or degree program. Loans are awarded based on the student’s entire academic history. Therefore, transcripts from all colleges and universities previously attended must be submitted to the Office of Admissions and Records.
• Students are required to complete the Free Application for Federal Student Aid (FAFSA).
• • In your myNWCC portal on the Northwest website, choose the Financial Aid Requirements option under Financial Information. If the Financial Aid Office needs more information, respond immediately to avoid delays in receiving your Financial Aid.
  • Required to submit all documents for verification if selected. (Verification is a process in which the U.S. Department of Education requires schools to collect documents, in order to check the accuracy of the information submitted on the FAFSA. Schools are prohibited from awarding financial aid, until the Verification process is complete)
• All students applying for the Direct Stafford loan must be citizens or eligible non-citizens.
• All students must be enrolled in a degree-seeking program
• All students must be enrolled in at least six credit hours (half-time) that span throughout the entire semester. You will not receive a disbursement until you are actively attending the six credit hours.
• Loan funds first will be applied to school charges (tuition, fees, etc.), then the remaining loan funds will be disbursed (paid) to the student.
• You don’t need a credit check or a cosigner to get federal subsidized and unsubsidized student loans.
•  PLUS loans require a credit check
• US Department of Education may charge a 1-2% origination fee to students at time of disbursement.
• No loan funds will be disbursed prior to the 30th day of the semester.
• Students must have and maintain a cumulative 2.0 GPA for all credits attempted (including transfer credits).
• Students must complete 67% of the cumulative hours attempted (including transfer credits) to maintain eligibility.
• Students must meet all Satisfactory Academic Progress (SAP) standards.
• Not exceed the yearly loan limits or lifetime loan limits, including loans received prior to attending NWCC. (see Federal Direct Student Limits chart above)
• Not Default on any educational loan or owe a repayment on a federal grant at any other institution.
• All students must complete Exit Counseling when they graduate, withdraw, or drop below half-time. 
• Students can click here to access exit counseling.
• Semester only (including summer) loans will have two equal disbursements within the semester.
• If you complete the Loan Acceptance process for both Fall and Spring, but you do not register for Fall classes, both Fall and Spring loans will be canceled. You will need to reapply for the Spring loan once you register for Spring classes.

• Students must reapply every year.
• Students must maintain satisfactory academic progress to continue eligibility for funding as stated in the general eligibility requirements.
• Students must not exceed the lifetime loan limits, including loans received prior to attending NWCC.
• Students who expect to use Federal Direct Student Loan to pay tuition and fees must complete the entire process at least one month before fees are due for the upcoming semester! This includes being pre-registered in at least 6 hours. (See bulletin for due dates)  If you do not meet this deadline, you must make other arrangements to pay tuition and fees with the Business Office.

• In order to be eligible for a Student Loan, please submit the FAFSA for the school year you wish to attend. Once we receive your FAFSA, if you are eligible for a student loan, it will be automatically offered on your Web Services account.
• Log in to Student Financial Planning Portal (SFP) using your myNWCC login.  Select Step 2 to accept or decline your loan.
• Complete the following
• • Loan Entrance Counseling
  • Master Promissory Note (MPN)
• Please note:  If you do not see options under Step 2, please email finaid_loans@northwestms.edu

• In-School Deferment
• Payment Schedule
• Loan Cancellation Form
• Loan Reduction Form