Student Debt Relief

Federal Student Aid and the Biden-Harris Administration have announced loan forgiveness plans of up to $20,000 for prior Pell-Grant recipients and up to $10,000 for all other loan borrowers. To be eligible borrower’s annual income must be below $125,000 (individuals) and $250,000 (married couples/head of households). If the U.S. Department of Education doesn’t have your income data – or if you don’t know if the U.S. Department of Education has your income data, the Administration will launch a simple application in the coming weeks. Borrowers can view their loan balances and check their Pell Grant status by logging into their Federal Student Aid account online at studentaid.gov.

Please visit studentaid.gov/debt-relief-announcement/ and https://studentaid.gov/debt-relief-announcement/one-time-cancellation for the most up-to-date information.

If you would like to be notified by the U.S. Department of Education when the application is open, please sign up at the Department of Education subscription page.

Check the first box, which is called "NEW!! Federal Student Loan Borrower Updates."

Student Debt Relief: Frequently Asked Questions

Q: What loans are considered for forgiveness?
A: All federally-held loans are eligible for forgiveness. These are typically Direct Subsidized, Direct Unsubsidized, Direct Graduate PLUS, Direct Parent PLUS, and Direct Consolidated loans. Loans held by private banks or financial institutions do not qualify for debt cancellation.

Q: When did the loans have to be taken out for forgiveness consideration?
A: Any federally-held loan which was disbursed on or before June 30, 2022, is considered for forgiveness. Any loans for the 2022-2023 academic year will not be considered for forgiveness.

Q: Am I eligible if I am still in school?
A: Yes, as long as your loans were disbursed on or before June 30, 2022.

Q: How do I know if I had a Pell Grant?
A: If you are unsure whether you received a Pell Grant, you can check your account on studentaid.gov. Navigate to the Aid Summarypage to view a summary of loans and grants you’ve received.

Q: Do I have to apply for loan forgiveness?
A: Nearly 8 million borrowers may be eligible to have debt forgiven automatically because the Department of Education already has their income data. Everyone else will have to submit their income information via a simple application online that will be available in early October, according to the Department of Education. Once the application is complete, cancellation will take place within four to six weeks.

If you would like to be notified when the application is open, please sign up at the Department of Education subscription page. Check the first box, which is called "NEW!! Federal Student Loan Borrower Updates."

Q: Is there a deadline to apply for loan forgiveness?
A: Borrowers are advised to apply before November 15th in order to receive relief before the payment pause expires on December 31, 2022. The Department of Education will continue to process applications as they are received, even after the pause expires on December 31, 2022.

If borrowers don't apply for forgiveness by Nov. 15, they will have more than a year to still apply all the way up until Dec. 31, 2023. But their loans could enter repayment before they are forgiven if they wait beyond Nov. 15.

Q: Where can I find more information about loan forgiveness?

Important Change to the Disbursement of All Federal Direct Student Loans

All student loans will be split between two equal disbursements each semester.

This applies to single-semester loans (summer only, fall only, and spring only) as well as loans that are automatically split between fall/spring. The first disbursement can be made according to the disbursement schedule while the second disbursement will be made at the midpoint of the semester. Some students may not receive a refund after the first disbursement if all charges have not been paid, whereas other students may receive a partial refund followed by another refund later in the semester. Please keep this in mind when budgeting. If for some unexpected reason a student drops below half-time enrollment (fewer than 6 enrolled credits) at the time that the second disbursement would occur, the second half of any student loans will be canceled.

Due to federal regulations, the Department of Education requires NTC to delay the first disbursement of a loan for new student loan borrowers up to 30 days beyond the student’s start date.

2023 Spring Semester Disbursement Dates

Disbursement Date Type of Financial Aid
Week ending
February 10
First Installment of loans disbursed to student accounts
Week ending
February 17
Pell and other grants disbursed to student accounts
Week ending
February 24
First Installment of loans disbursed to student accounts for first-time borrowers

Please Note: The disbursement date may vary as it is based on when the first-time borrower can complete 30 days in his or her program of study.
Week ending
March 31
Second Installment of loans disbursed to student accounts

Please Note: These are estimated disbursement dates. Only students who have submitted the necessary documentation, meet all financial aid eligibility requirements, and are active in classes will receive disbursements as outlined in the above schedule. If you have late enrollment, submit late documentation, and/or do not meet all eligibility requirements, your disbursement will not follow this same schedule. Disbursements are regularly scheduled on a weekly basis after the first disbursement.

Students must maintain all eligibility requirements at the time of disbursement to receive Federal Student Aid funding. It is the student’s responsibility to review all financial aid policies and the Financial Aid Guide. Students must complete a FAFSA every year. Students must be making satisfactory academic progress to continue to receive financial aid.

Book Vouchers

Book vouchers are an easy way for you to utilize financial aid funds to cover books and other materials. You must have financial aid in excess of the cost of your tuition/fees to charge books against your financial aid.

The process for book vouchers has changed

If you are awarded and accept financial aid that is in an amount greater than your current charges (tuition and fees, etc.), then you may be eligible for a voucher to charge your textbooks and course related supplies at the NTC Campus Store to your excess financial aid prior to your financial aid disbursement each semester.

To purchase textbooks and needed supplies with your pending financial aid, students will no longer have to submit a request for a book voucher. Instead, students that are eligible for a book voucher will receive an email confirming their eligibility status.

Please note:  Emails notifying students of their book voucher eligibility will begin the week of December 7 for the Spring 2023 semester.

Most students will receive an email message letting them know:  A book voucher has been created for you to use in the NTC Campus Store.

However, other students may receive an email message letting them know that they do not qualify for a book voucher at this time. For instance, you may receive an email message such as:  At this time, you do not have sufficient undisbursed financial aid available to qualify for a book voucher.

Please be sure to read the email sent to you carefully as it will explain how to use your book voucher, terms and conditions, amount, expiration date, and for those who aren’t eligible, the reason why you don’t qualify for a book voucher.

Please understand that by choosing to use the offer of a book voucher you are authorizing Northcentral Technical College to use your excess financial aid funds to pay for bookstore charges applied to your student account.

A book voucher is a service provided to students with financial aid that allows them to purchase textbooks and needed supplies at the NTC Campus Store. Students may choose not to utilize this service, in which case no further action is needed.

Please Note: Book Vouchers expire prior to running the following week’s financial aid refund process to avoid any late Campus Bookstore charges that may not get deducted before that week’s financial aid refunds are processed and distributed to students.