SKIP TO PAGE CONTENT

Loans


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.

Loans are legal obligations, so before you take out a student loan, think about the amount you'll have to repay over the years. A loan calculator may help you to plan for your loan repayment.

How to Accept Your Loan Award

Accepting your loan(s) is a three part process!

  1. Accept or Reject your loans on MyNCTC. This must be done every year.
  2. Complete loan entrance counseling online at www.studentloans.gov. This must be done every year.
  3. Complete and e-sign a Master Promissory Note (MPN) online at www.studentloans.gov if you haven't already done so for Direct Loans.

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.

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

A need based loan where the federal government pays the interest on the loan while the student is in school.

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.

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.

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 4.292% (beginning October 1, 2014) is charged upon disbursement. All funds are received electronically are posted to the student's billing account to pay university authorized tuition and fees. To apply for a Parent PLUS loan go to www.studentloans.gov

Eligibility

  • Student fills out a FAFSA
  • Student must be attending at least half-time (6 hours)
  • Parent must have a good credit history

Repayment

  • Begins 60 days after the funds are fully disbursed
  • 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.

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.

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. The fee is deducted from the proceeds of your loan by your lender and paid to the federal government.

First Time Borrowers and Loan Borrowers for One Semester Only

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).

Deferment Forms