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Loans

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Responsible Borrowing
William D. Ford Federal Direct Student Loans are a major form of self-help aid. These funds are to be used for education purposes, which include tuition, fees, books, supplies, room, board, and transportation. Unlike scholarships and grants, these funds have to be paid back. There are several repayment schedules, but most begin six months after graduation or withdrawal from school or when the student becomes less than half-time, falling below six credit hours. Interest rates also vary and are set annually by the federal government.

Federal Direct Loan Limits
Typically, students must be able to answer “yes” to questions in Step 3 of the FAFSA in order to be independent. The questions usually ask if a student is the age of 24, married, working on a Master’s Degree or higher, in the military, or currently have children who they provide more than 50% of support for, or have been legally declared independent, homeless, or orphaned.

Federal Aid Changes Under the One Big Beautiful Bill Act (OBBBA)
The One Big Beautiful Bill Act (OBBBA) was signed into law on July 4, 2025. This legislation includes several significant changes to federal student aid programs, most of which become effective for periods of enrollment beginning on or after July 1, 2026.

Changes include new federal student loan limits, the elimination of Federal Graduate PLUS Loans, and the implementation of loan proration for students enrolled less than full-time. The Northwest Mississippi Community College (NWCC) Financial Aid Office is actively monitoring guidance from the U.S. Department of Education regarding these changes and their implementation. Information provided is subject to change as additional guidance becomes available.

Under the One Big Beautiful Bill Act, a "new borrower" is generally defined as a student who did not receive any type of Federal Direct Loan (Subsidized, Unsubsidized, or PLUS) for their current program of study prior to July 1, 2026..

Loan Reductions for Less Than Full-Time Enrollment
Beginning with periods of enrollment on or after July 1, 2026, federal regulations may require that students enrolled less than full-time receive reduced Federal Direct Loan amounts based on their enrollment level.

At Northwest Mississippi Community College, full-time enrollment is defined as 12 or more credit hours per semester. Students enrolled in fewer than 12 credit hours may have their Federal Direct Loan eligibility adjusted or prorated to reflect their enrollment status.

This requirement applies to students receiving Federal Direct Subsidized Loans and Federal Direct Unsubsidized Loans. NWCC is currently awaiting additional guidance from the U.S. Department of Education regarding how these reductions will be calculated, including whether proration will be applied on a semester-by-semester basis or over the entire academic year.

Students are encouraged to monitor their enrollment status carefully and contact the Financial Aid Office with any questions regarding how changes in enrollment may affect their financial aid eligibility.

Dependent Students:

Independent Students:

Interest Rate:

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