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Student loans, unlike grants and work-study, are borrowed money that must be repaid, with interest. Student Loans cannot be canceled due to unemployability or other financial hardship issues.
Loans are legal obligations, so before you accept student loans, think about the amount you'll need to repay over the years. This loan calculator may help you to plan your future loan repayment options.
How to Accept or Decline Student Loan Awards
Accepting your loan(s) is a three part process!
Accept or Reject your loans on your Financial Aid Portal. This must be done every year.
Complete Student Loan Entrance Counseling
Complete and e-sign a Master Promissory Note (MPN)
Using the Loan for Education Expenses
Financial Aid Funds can only be used to pay for educational expenses at the school you attend.
Education Expenses could include:
Tuition and Fees
Books and Course Supplies
Housing and Food
Computer Expenses
Transportation
Federal Student Loan Fees
Personal
Professional Licensure or Certification
Cooperative Education Cost
Disability Related Expenses
Study Aboard
Eligibility
Direct Loan (DL) Eligibility Requirements
Must complete the FAFSA.
Must meet satisfactory academic progress as determined by the Financial Aid Office.
Must be enrolled at least half-time (six hours) each semester.
Must be a citizen or eligible non-citizen.
Must not be in default on any federal loan or owe a refund back to any federal program (nor your parent when applying for a PLUS loan.)
Federal Direct Subsidized Loan
Subsidized Students Loans are need-based loans whose interest is guaranteed by the federal government while the student is in school.
Federal Direct Unsubsidized Loan
Unsubsidized Student Loans are non-need based loans where the borrower is responsible for the interest on the loans as soon as the funds are disbursed.
Federal Direct Parent Loan (PLUS Loan)
The Federal Parent Loan (PLUS) is available to the parents of dependent undergraduate students. PLUS loans are the financial responsibility of the parents, not the student. The parent may only borrow up to the Cost of Attendance (excluding any other financial aid). An origination fee of 4.228% is charged upon disbursement. All funds are received electronically and are posted to the student's billing account to pay university authorized tuition and fees.
Parent Plus Eligibility
Student fills out FAFSA
Student enrolled least half-time (6 hours)
Parent must have a good credit history
Parent complete Direct Plus Loan Master Promissory Note
Parent Plus Repayment
Begins 60 days after the funds are fully disbursed
Request a deferment while the student is in school
Repayment term is up to 10 years
Summer Loans
Eligibility for a summer loan depends on your grade level, degree plan, and amount of loans you have already borrowed for the academic year. To qualify for summer student loans you must have unused funds remaining from the school year and must be registered for at least 6 hours.
Maximum Eligibility Amounts
Dependent student undergraduate loan limits.
Freshman - $5,500 per academic year ($3,500 maximum in subsidized loans and $2,000 maximum in unsubsidized loans or up to the cost of attendance)
Sophomore - $6,500 per academic year ($4,500 maximum in subsidized loans and $2,000 maximum in unsubsidized loans or up to the cost of attendance)
Maximum total debt from Direct Loans - $31,000 - but no more than $23,000 of that total may be in subsidized loans.
Independent student undergraduate loan limits.
Freshman - $9,500 per academic year ($3,500 maximum in subsidized loans and $6,000 maximum in unsubsidized loans or up to the cost of attendance)
Sophomore - $10,500 per academic year ($4,500 maximum in subsidized loans and $6,000 maximum in unsubsidized loans or up to the cost of attendance)
Maximum total debt from Direct Loans - $57,500 but no more than $23,000 of that total may be in subsidized loans.
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.
Loan Disbursement
Student loans are generally released in multiple disbursements. You will receive one half each semester in which you are enrolled at least six hours and meet North Central Texas College Satisfactory Academic Progress as determined by the Financial Aid Office.
Example: You were awarded $3,500 for the Fall/Spring term. You will receive $1,750 (minus what you owe the school) 30 days after the start of the Fall semester and $1,750 (minus what you owe the school) 30 days after the start of the Spring Semester (see refund dates).
Please remember that the lender may retain an origination fee. Origination fees are charged by the federal government for processing the loan. Effective October 1, 2021 the origination fee is 1.057% of the award amount and is deducted from the proceeds of your loan by your lender and paid to the federal government.
First Time & One Semester Only Borrowers
If you're a first-time borrower, your first disbursement cannot take place until 30 days after the first day of your enrollment period begins (see refund dates). Also, if you receive a loan for only one semester, your loan disbursement will be refunded in two separate disbursements (see refund dates).
Loan Deferment
A deferment is a period during which you are entitled to postpone repayment of your loans. Interest is not generally charged to you during a deferment on your subsidized loans. Interest is always charged to you during a deferment on your unsubsidized loans. On loans made under the Perkins Loan Program, all deferments are followed by a post-deferment grace period of 6 months, during which time you are not required to make payments.
You are eligible for deferment only if you are enrolled at least half time.