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Loan Information

North Central Texas College Loan Policy

North Central Texas College announces entry into the William D. Ford Federal Direct Loan program effective for the fall, 2010 semester. The Direct Loan program offers students and parents low interest loans to assist in funding the cost of education. To apply for a student loan, the student must first complete the Free Application for Federal Student Aid (FAFSA).

To apply for aid using the FAFSA, students need to log on to www.fafsa.gov. Applications for 2012-2013 are based on 2011 income information.

When the Financial Aid Office reveiws your FAFSA results processed from the Department of Education we will determine eligibility of financial aid awards. Students will be notified once an award package is complete by mail. Students will be directed to logon to their Campus Connect account online. Once you have accepted your loans, you will then proceed to www.studentloans.gov. In order for us to finish the loan process you must complete Entrance Counseling and sign a Master Promissory Note (MPN) which can be done at the above website. Entrance Counseling will help you to understand your responsibilities regarding your loan. The MPN is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the Department. It also explains the terms and conditions of your loan(s). To complete an MPN online, you will be required to use your Department of Education-issued PIN. If you do not have a pin, you may request one from the offical PIN site at www.pin.ed.gov. A Parent borrower must also request a PIN number from the PIN site to use when completing a PLUS MPN.

Student Loans

Loans are borrowed money that must be repaid. Some loans require students to pay interest while they are in school. Parents may borrow to help pay for the educational expenses of their dependent undergraduate student. Maximum loan amounts depend upon the student's grade level in school.

Using the loan for education expenses:

You may use the loan money you receive only to pay for your education expenses at the school that is giving you the loan. Education expenses include school charges such as tuition, room and board, fees and indirect expenses such as books, supplies, equipment, dependent child care expenses, transportation and rental or purchase of a personal computer

Federal Direct Subsidized Loan - A need based loan where the federal government pays the interest while the student is in school and during the grace period before repayment begins. You must be enrolled at least 6 hours per semester to receive these funds.

Eligibility

Must have a "need" as determined by the (FAFSA)
Be enrolled at least half-time at NCTC
Maintain Satisfactory Academic Progress
Not exceed annual or lifetime aggregate loan limits

Federal Direct Unsubsidized Loan - Non-need based loan. You, the borrower, are responsible for the interest on the loans as soon as the funds are received. You must be enrolled at least 6 hours per semester to receive these funds.

Eligibility

Complete the Free Application for Student Financial Aid (FAFSA)
Be enrolled at least half-time at NCTC
Maintain Satisfactory Academic Progress
Not exceed annual or lifetime aggregate loan limits

Student Loan Limits

DEPENDENT student undergraduate Limits

Freshman - $5,500 per academic year

Sophomore - $6,500 per academic year

$3,500 maximum in subsidized loans

Maximum total debt from Direct Loans - $31,000 - but no more than $23,000 of that total may be in subsidized loans

INDEPENDENT students undergraduate loan limits

Freshman - $3,500/Academic Year in Subsidized Loans and $6,000/Academic Year in Unsubsidized Loans

Sophomore - $4,500/Academic Year in Subsidized Loans and $6,000/Academic Year in Unsubsidized Loans

Maximum total debt from Direct Loans - $57,500 but no more than $23,000 of that total may be in subsidized loans

Federal Direct Parent Loan (PLUS Loan) - The Federal Parent Loan (PLUS) is available to the parents of dependent undergraduate students. The parent may only borrow up to the Cost of Attendance (excluding any other financial aid). An origination fee of 1.5% (beginning July 1, 2007) is charged upon disbursement. All funds are received electronically are posted to the student's billing account to pay university authorized tuition and fees. Go to www.studentloans.gov to fill out an application.

Eligibility

Student must attendingat least half-time (6hours)
Parent must have a good credit history

Repayment

Begins 60 days after the funds are fully disbursed
Repayment term is up to 10 years

PLUS loans are the financial responsibility of the parents, not the student. If the student agrees to make payments on the PLUS loan, but fails to make the payments on time, the parent(s) will be held responsible.

NCTC requires the completion of the Free Application for Federal Student Aid for parent PLUS borrowers even if the student is not interested in Federal or State aid. The student must meet certain eligibility criteria (citizenship, selective service, no defaults on previous loans, etc) in order for the parent to be eligible to apply for the Federal Direct PLUS loan. The easiest and fastest way to determine the student's eligibility is through the FAFSA.

Exit Counseling

Federal regulations require all Stafford loan borrowers to complete an exit counseling session upon graduating, withdrawing, or dropping below half-time attendance. The exit counseling session must be completed regardless if you plan to transfer to another school or re-enroll at our school in the future. You can complete Exit Counseling by going to www.studentloans.gov.

Student loans, unlike grants and work-study, are borrowed money that must be repaid, with interest. You cannot have these loans canceled because you didn't get a job in your field of study or due to financial difficulty.