• How much do you really need to borrow?
Your initial Award Letter will indicate the maximum amount of loan eligibility but, you may not need to borrow the maximum. The amount you borrow needs to be influenced by how much you will be receiving from financial aid sources (e.g. grants, scholarships, work-study) and how much you will be contributing from your own resources (both student and/or parent).
Remember to keep your total loan debt in mind and only borrow amounts that you will realistically be able to repay once you are out of college. Be a responsible borrower.
• How much will my payments be?
You must begin repaying your Direct Loan six months after you graduate or drop below half-time. Your payments will include all accrued interest and deducted fees. Making small payments while in school will help reduce your principal and/or interest balance.
Please keep in mind - your loans are not grants. It is borrowed money and must be repaid. Borrow only what you need.
• For more information on financial aid planning you can go to I Have a Plan – Iowa to find more tools such as building a financial aid plan, budget calculators, and a scholarship database.
• Before a student can receive their first loan disbursement the U.S. Department of Education requires all student borrowers to conduct entrance counseling. The purpose of the counseling session is to provide the borrower with important information regarding their rights and responsibilities. Once you have successfully completed the session, your results will be sent to the Northwest Iowa Community College Financial Aid Office. Please print a copy of the results for your own records.
• The average federal student loan debt of those who borrow at NCC is approximately $5,300 per academic year. Northwest Iowa Community College considers half-time enrollment to be 6 credits in the fall, spring, and summer term. If your enrollment status drops below half-time, your future loan disbursements may be cancelled, you will no longer qualify for an in-school deferment of your loan payments, and you will either enter into repayment or start your grace period. During a grace period you are not required to make payments but the unsubsidized interest will continue to accrue.
• It is important for you to understand that interest accrues on Unsubsidized (and PLUS) loans and is capitalized during periods when the interest is not paid by you, the borrower. If you allow the interest to be capitalized, you will be charged interest on top of interest when the loans enter repayment. You do have the option to pay the interest while in school and it is in your best interest to choose this option.
• If you need to withdraw from your classes it is important that you see your Advisor to complete a "Withdrawal Form." You will also need to call or stop by the Financial Aid Office.
If you drop below half-time, withdraw, or graduate, you are required to complete an Online Exit Counseling Session.
• Detailed federal loan information is available on the National Student Loan Data System
(NSLDS). This website will outline the federal loans you received when attending NCC and also the loans received if you have attended other institutions.
• When a student or parent requests a Direct Loan or PLUS Loan, the loan information will be submitted to the National Student Loan Data System
(NSLDS) and will be accessible by guaranty agencies, lenders, and schools determined to be authorized users of the data system.