Loan Information and Acceptance
Steps for accepting a Federal Student Loan
STEP 1 : FAFSA at www.fafsa.gov
- ALL borrowers must complete the FAFSA and submit all other documents required by the Financial Aid Office.
STEP 2: Entrance Counseling at www.studentloans.gov
- NEW BORROWERS: To complete Loan Entrance Counseling, you will need to sign in with your FSA ID. After signing in, indicate Northwest Mississippi Community College (002427) as the school, and complete the counseling session, which will take about 30 minutes. Once you have completed the counseling session, you will need to upload the proof of Entrance Counseling in the online Loan Acceptance Form.
- RETURNING BORROWERS: If you previously have completed Entrance Counseling, sign in with your FSA ID and click on “View Completed Counseling” so that you can upload proof of completed Entrance Counseling in the online Loan Acceptance Form.
STEP 3: Master Promissory Note (MPN) at www.studentloans.gov
- RETURNING BORROWERS:: If you previously have completed the MPN, sign in with your FSA ID, click on “Completed MPN’s”, and select the PDF version of the MPN, which will contain your typed personal information. Save the PDF version of the MPN and upload it in the online Loan Acceptance Form, below.
- NEW BORROWERS: To complete the MPN, you will need to sign in with your FSA ID. After signing in, type in your personal information and read all sections of the terms and conditions. Then save the PDF version of the MPN which will contain your typed personal information, and upload it in the online Loan Acceptance Form below.
STEP 4: Read carefully through the information below. Then complete and submit the online Loan Acceptance Form, at the end of this information section.
LOAN ELIGIBILITY WORKSHEET
Use this worksheet to determine your loan eligibility per semester. The Federal government has provided maximum loan amounts; however, due to Northwest’s low cost of attendance, most students do not qualify to take out the maximum amount.
- If you qualified for other aid, plug the appropriate amounts into the calculation below from your myNWCC portal under Financial Aid Status.
- If you have not been awarded, you will need to provide any additional documents in the Student Verification portal that are being requested by the U.S. Department of Education in order to be awarded prior to applying for a loan.
- If you did not qualify for other aid (Pell, SEOG, Federal Work-Study, etc.), you will not have additional amounts to plug into the calculation. For you, COA – 0 = Loan Eligibility (not to exceed the annual maximums listed below).
DIRECT STUDENT LOAN MAXIMUMS
NOTE: Students may not be eligible for the maximum loan amount. “Dependent” students are typically under 24 years of age, unmarried, and without children. “Independent” students are typically 24 years of age or older, or married, or have children which they are actively supporting (worked a full-time job and filed taxes).
*The loan amounts above are maximums allowed by the Dept. of Education and are subject to the Cost of Attendance (scholarships, grants, etc.) the student may have received.
Refer to your Financial Aid Shopping Sheet, in your myNWCC Account for your Estimated Cost of Attendance. On the sample Shopping Sheet below, the student is Independent, In-State and Off-Campus.
Loan Types (DIRECT SUBSIDIZED and DIRECT UNSUBSIDIZED)
DIRECT SUBSIDIZED LOAN:
Is available to students with financial need, based on the FAFSA. The U.S. Department of Education pays the interest
while you are in school at least half-time (6 credit hours), for the first 6 months after you leave school (grace period),
and during a period of deferment.
Freshmen are eligible for up to $1,750 per semester. Sophomores are eligible for up to $2,250 per semester.
DIRECT UNSUBSIDIZED LOAN:
The FAFSA must be completed, but there is no requirement to demonstrate financial need.
The interest accrues (accumulates) and is capitalized (added to the principal loan amount) while you are in school.
You can pay the interest, while you are in school, but you are not required to do so.
There is a loan fee on all Direct Subsidized Loans and Direct Unsubsidized Loans.
Direct Subsidized Loan Time Limitation
If you received your first federal student loan after June 30, 2013, there is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized Loans. In general, you may not receive Direct Subsidized Loans for more than 150% of the published length of your program. This is called your “maximum eligibility period.” In addition, if you continue to be enrolled in any undergraduate program after you have received Direct Subsidized Loans for your maximum eligibility period, The U.S. Department of Education will no longer (with certain exceptions) pay the interest that accrues on your Direct Subsidized Loans for periods when the U.S. Department of Education normally would have done so. This is called losing interest subsidy.
- Loss of eligibility for Direct Subsidized Loans due to the time limitation has no impact on your eligibility for Direct Unsubsidized Loans.
- The periods of time that count against your maximum eligibility period are periods of enrollment (also known as “loan periods”) for which you received Direct Subsidized Loans.
- If you enroll in a new program that is longer than your previous program, you may regain eligibility to receive Direct Subsidized Loans.
Maximum eligibility period to receive Direct Subsidized Loans
There is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized Loans. In general, you may not receive Direct Subsidized Loans for more than 150% of the published length of your program. This is called your “maximum eligibility period”. You can usually find the published length of any program of study in NWCC’s catalog, Bulletin. For example, if you are enrolled in a 2-year associate degree program, the maximum period for which you can receive Direct Subsidized Loans is 3 years (150% of 2 years = 3 years). Your maximum eligibility period is based on the published length of your current program. This means that your maximum eligibility period can change if you change programs. Also, if you receive Direct Subsidized Loans for one program and then change to another program, the Direct Subsidized Loans you received for the earlier program will generally count against your new maximum eligibility period.
Effect of borrowing while enrolled part-time
If you receive a Direct Subsidized Loan when you are enrolled less than full-time, the period that is counted against your maximum eligibility period will be reduced. For example, if you are enrolled half-time and receive a Direct Subsidized Loan for a period of enrollment that covers a full academic year, this will count as only one-half of a year against your maximum eligibility period.
Summer Loan Eligibility
Please be aware that if you borrowed all of your loan eligibility during Fall and Spring, you will not have any loan eligibility remaining for Summer.
Per federal regulations, single-term loans are subject to pro-ration based on the number of hours attempted, divided by 24 hours, and multiplied by the annual loan amount. This also applies to students graduating or transferring at the end of the semester or enrolled in a single-term program.
Know before you borrow:
- YOU MUST BE ENROLLED IN AND MAINTAIN AT LEAST 6 CREDIT HOURS (2 X 3 HOUR CLASSES), IN YOUR PROGRAM OF STUDY, TO BE ELIGIBLE FOR STUDENT LOANS.
- 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 must be enrolled in and maintain at least 6 credit hours (2 classes), per semester, to receive a loan. If not, then your loan will be cancelled.
- No loan funds are disbursed prior to the 30th day of the semester.
- If you are enrolled in classes in Fall 2020 and you fall under the single-term calculation rule as explained above, your loan funds will be split into 2 disbursements, per federal regulations.
- If you complete the Loan Acceptance process for both Fall 2020 and Spring 2021, but you do not register for Fall 2020 classes, both Fall 2020 and Spring 2021 loans will be canceled. You will need to reapply for the Spring 2021 loan once you register for Spring 2021 classes.
FEDERAL DIRECT STUDENT LOAN ACCEPTANCE FORM
Acceptance forms are located within the myNWCC system. You must login there first, then go to the bottom of the CampusKey screen. Choose the Fall 2020 Loan Acceptance form to proceed.
Other Loan Forms
The most important thing to remember about loans is that they must be repaid!