There are four types of financial aid: grants, scholarships, student loans, and work-study. Students are offered a financial aid package consisting of these different types of financial aid. When awarding financial aid, we are required to take into consideration both your cost of attendance and expected family contribution (EFC). The cost of attendance is the average amount it will cost a student to attend NTC. Expected Family Contribution (EFC) is an index number that is used to determine how much financial aid you’re eligible to receive. Your EFC is calculated according to a formula established by law and the information from your Free Application for Federal Student Aid (FAFSA).
Student loans are borrowed money that must be repaid with interest. Students may be eligible for Federal Direct Loans if enrolled in a minimum of 6 credits. Please note that these loans may not be canceled because you didn't get a job in your field of study or because you are having financial difficulty. Loans are legal obligations, so before you take out a student loan think about the amount that you will have to repay in the years after graduation.
There are several loan types available to you:
• Federal Direct Loans
• Loan Requirements
• Parent PLUS Loans
• Alternative Student Loans (also called private student loans)
Federal Direct Loans are low-interest loans offered by the U.S. Department of Education to eligible students. There are two types of Federal Direct Loans: subsidized and unsubsidized.
Eligibility for a subsidized loan is based on financial need as determined by your cost of attendance and estimated family contribution (EFC). With this loan, the government will pay the interest while you are enrolled at least half time (6 credits), during your grace period (unless you received a subsidized loan that was first disbursed between July 1, 2012, and July 1, 2014), and during any periods of deferment.
NOT awarded on the basis of need and do have a higher interest rate. You will be charged interest from the time the loan is disbursed until it is repaid in full. If you allow the interest to accrue (accumulate) while you are in school or during other periods of nonpayment, it will be capitalized. This means that interest will be added to the principal amount of your loan, and additional interest will be based on that higher amount.
• You must meet the eligibility requirements listed above.
• You must not exceed federal aggregate loan limits.
• Once you receive your Award Notification in your student email, go into your MyNTC Student Center and accept or decline your awards.
• Complete Entrance Counseling at the Student Loans website to better understand your rights and responsibilities.
• Complete a Subsidized/Unsubsidized Loan Agreement (Master Promissory Note) at the Student Loans website. The MPN is a legal document in which you are promising to repay your loan(s) and any accrued interest and fees to the U.S. Department of Education.
• View the disbursement & refunds page for additional information on when you will receive your funds.
If you received a Federal Direct Loan(s) and you graduate, drop below half-time or withdraw, you are required to complete Exit Loan Counseling. You may do this online at the Student Loans website.
For complete information about the Federal Direct Loan program, including current interest rates, annual limits and aggregate limits, visit the Federal Student Aid website.
Interest Rates for the 2018-19 Academic Year
The following fixed interest rates are for Direct Loans first disbursed on or after July 1, 2018 and prior to July 1, 2019.
2018-19 Direct Loan Interest Rates
|Federal Direct Subsidized Loan for undergraduate students||5.05%|
|Federal Direct Unsubsidized Loan for undergraduate students||5.05%|
|Federal Direct Parent PLUS Loan||7.60%|
Requesting Additional Loans
If you already have a Federal Direct Loan but find that you are in need of additional loan funds, additional loan funds for summer and the fall/spring semesters using the Additional Loan Request menu option within the "Student Center" in myNTC. If you request more than your eligibility allows, the loan will be certified to your maximum eligibility.
It’s important to remember that there is a maximum lifetime limit you can borrow in Federal Direct Loans, which is called the Aggregate Loan Limit. Once you hit this limit, you can’t borrow additional funds until your loans are paid down.
Aggregate Loan Limits
|Dependent||$31,000 - No more than $23,000 of this amount may be in subsidized loans|
|Independent||$57,500 for undergraduates - No more than $23,000 of this amount may be in subsidized loans.|
Parent PLUS Loans
Federal Parent PLUS Loans enable parents with good credit histories to borrow funds for the educational expenses of each child who is a dependent student. PLUS loan proceeds can be used to pay for eligible educational expenses which may include the following: tuition and fees, room and board, books and supplies, transportation, and other costs associated with attending a post-secondary institution.
How Do I Get Started?
1. To apply for a PLUS Loan the parent will need to complete and return to the NTC Financial Aid Office a PARENT PLUS Loan Authorization Form.
2. Parents will also need to complete a Loan Agreement (Master Promissory Note) for Parent PLUS Loans. The Loan Agreement (MPN) is a legally-binding contract between the Department of Education and a borrower. The promissory note contains the terms and conditions of the loan, including how and when the loan must be repaid. Complete the Master Promissory Note (MPN) for Parent PLUS now.
3. Complete the PLUS Counseling module at studentloans.gov.
What is the maximum PLUS loan amount that can be borrowed?
The maximum PLUS loan amount is equal to the student’s cost of education (budget/cost of attendance) minus other financial aid and resources such as scholarships.
Example: The budget (cost of attendance) for the student is $14,000. Other financial aid is $5,500. The difference of $8,500 is the amount that can be borrowed in a PLUS loan.
Can both a parent and step-parent of a dependent student apply for a PLUS loan for that student?
Any two eligible parents may borrow separately to provide for the educational expenses of the student, provided that the combined borrowing of the parents does not exceed the cost of attendance minus other financial aid and resources. Eligible parents include the student’s biological or adoptive parents or step-parent if their income was used when completing the FAFSA.
Can I still receive a Direct PLUS Loan if I have an adverse credit history?
A credit check will be performed during the application process. If you have an adverse credit history, you may still receive a Direct PLUS Loan by obtaining an endorser who does not have an adverse credit history or documenting to the U.S. Department of Education’s satisfaction extenuating circumstances relating to your adverse credit history. If you are a parent borrower, the endorser cannot be the child on whose behalf you are borrowing.
Download Direct PLUS Loans and Adverse Credit
For more information about the Direct PLUS Loan visit Federal Student Aid.
Alternative Student Loans (Private Loans)
Alternative student loans (or private student loans) are loans a student takes out directly from lending institutions to assist with college related costs. These loans can be used for education related expenses such as tuition, books, transportation, and room & board. Students should exhaust all federal aid and direct loan opportunities before applying for an alternative loan. Most alternative loans offer variable interest rates; whereas the Direct Loan opportunities, such as the Stafford and PLUS Loans, offer fixed interest rates. Alternative loans are not federally guaranteed and require a good credit rating and/or credit worthy co-signer. To receive an alternative loan you must:
• complete the FAFSA,
• receive your NTC award offer,
• be registered for classes.
The amount of the alternative loan you will qualify for is limited to your cost of attendance minus all other financial aid. Due to a new Federal Government regulation (see Dear Colleague Letter: GEN-10-01), you will need to complete a self-certification form for your lender before they will process your loan. If your lender has not supplied you with a self-certification form, you can find the form at the Forms page of Northcentral Technical College’s Financial Aid website.
How to Apply
Northcentral Technical College does not endorse any lender or lending institution. To assist you in your search, we do recommend using FASTChoice. FASTChoice is a private loan selection tool that helps students make a wise choice regarding borrowing an alternative loan. FASTChoice allows you to compare lender rates, terms, and benefits. We recommend you follow the steps below:
1. Go to Fast Choice to get started
2. Enter in your personal information.
3. Complete Borrowing Essentials to learn about borrowing money.
4. Read through the Loan Product Disclosures and select Continue.
5. Use the filter option to select undergraduate and select filter Loans.
6. Compare the different options of private loans that are provided.
7. Once you find a loan you are interested in, select Apply.
8. Provide the lender with all information required and submit your application.
9. The lender will review your application to determine if you qualify. If your loan is approved, the lender will notify us for certification.
10. The Financial Aid Office will review your account and if you meet the eligibility requirements, your loan will be certified.
11. If the funds cause a credit on the student's account, the excess will be refunded to the student through their BankMobile account preference.