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NCTC will start certifying Loans for the 2010-11 award year after June 1,2010.NCTC announces entry into the William D. Ford Federal Direct Loan program effective for the fall, 2010 semester. North Central Texas College Loan PolicyNorth 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, or FAFSA. To apply for aid using the FAFSA, students need to log on to www.fafsa.gov. Applications for 2010-2011 are based on 2009 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.
Loans Loans are borrowed money that you must repay. Some loans will require you to pay interest. Parents may also borrow to pay the educational expenses of their dependent undergraduate student. Maximum loan amounts depend upon your grade level in school. 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
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
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 $4,000/Academic Year in Unsubsidized Loans Sophomore - $4,500/Academic Year in Subsidized Loans and $4,000/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
Repayment
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 (citzenship, 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 elgibility is trrough 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.
Who makes the loan? Loans are made by the Department of Education.How do I get a loan? First you must complete your FASFA at www.fafsa.gov. In addition, federal regulations require borrowers undergo entrance loan counseling before receiving a loan each academic year. Exit loan counseling is required when the student ceases at least half-time enrollment.Who is eligible?A loan recipient must be enrolled at least half-time in a semester and show satisfactory academic progress.When are loans paid back? Repayment of these loans starts six(6) months after you cease to be enrolled or after you drop below half-time status.Do I have to borrow the maximum amount? NO! You should only borrow as much as you need. Remember, these loans DO have to be paid back!What if I transfer to NCTC from another school? Will I be eligible for a loan? A student who transfers in the middle of an academic year and has received his or her annual limit while at the transfer institution will not be eligible for a loan at NCTC until the beginning of the next academic year.How often do I have to apply for a loan? Student loan recipients must apply for financial aid each year. Student loans are packaged for each eligible student and included in his/her award letter. The student will need to accept their loan awards before certification by financial aid office will be submitted.Which loan program does NCTC participate in? The Direct student loan that consist of Stafford Subsidized Loan, Unsubsidized Stafford Loan, Federal Parent Plus Loan for undergraduate students are the only loans available at NCTC. NCTC does not participate in the following loan programs: Federal Perkins Loans.What is the difference between subsidized and unsubsidized loans? The Subsidized loan is need based and the government pays the interest during in-school status, grace periods and authorized deferment periods. The Unsubsidized loan is not need based and the borrower is responsible for paying the interest that accrues during these loan periods.What is a Federal Parent Plus Loan? The Parent Plus Loan is a fixed interest loan created by the federal government to help creditworthy parents pay for their dependent student's education beyond high school. Repayment begins 60 days after the loan is fully disbursed. Interested students must complete their financial aid file, complete Parent Plus application at https://studentloans.gov.Important Websites:Options to pay student loans back click here. National Student Loan Data System (NSLDS): Click here to view your loan information.Click here for Simple Tuition. Simple Tuition is a free web-based loan comparison tool.Click here to look at private loan comparison tool.Click here to learn how to manage your credit and debt.Click here to learn more about money skills.Helpful website for money management. http://www.smartaboutmoney.org/portals/1/resourcecenter/40moneytips07.pdf Click here for the Income Base Repayment webiste
If you have any questions please contact the Financial Aid Office.Gainesville CampusAshley Tatum940-668-4242Stephanie Martin - Bowie Representative940-668-4242Michelle Winters940-668-4242
Corinth CampusStanja Zylowski940-498-6202Franklin Haskins940-498-6219Iris Cook 940-498-6294 ext 6501 Monica Montalvan940-498-6294 ext 6302mmontalvan@nctc.edu
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