Student Loans

Notice

Federal Direct Loans are a form of financial aid that must be repaid, usually after you graduate, withdraw from college or drop below half-time enrollment status. Federal Direct Loans provide low fixed interest rates with attractive repayment options and deferment/ cancellation opportunities.

If you are a first-time borrower on or after July 1, 2013, please familiarize yourself with the new federal regulations regarding a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized Loans. In general, you may not receive Direct Subsidized Loans for more than 150% of the published length of your program of study. For more information, please review the U.S. Department of Education’s Federal Student Aid announcement concerning this time limitation.

If you have ACCEPTED your loans by logging in to your myNSCC account you must complete the Master Promissory Note and Entrance Counseling Exam.

The MPN is a promissory note that can be used to make Federal Direct student loans for multiple academic years (up to 10 years). Because NSCC is authorized and chooses to make multiple loans under the same MPN for more than one academic year, you will only sign one MPN. It will be used for all of your Direct Loans at NSCC. For example, if you enroll in college as a freshman and borrow under the Direct Loan Program for all years of study, you are able to borrow under this MPN for all years.
The online Entrance Counseling was designed to help you understand your Direct Loan. Any undergraduate, graduate, or transfer student attending NSCC that has not previously borrowed funds from the William D. Ford Federal Direct Loan program must complete this process before their loan can be disbursed. Please contact the Financial Aid Office at any time if you have additional questions about the entrance counseling process.

Direct Loan Information

To receive your first William D. Ford Federal Direct Loan at Northwest State Community College, you must complete an Entrance Counseling and Master Promissory Note (MPN). The Entrance Counseling process ensures that you have a full understanding of the rights and responsibilities you will incur upon accepting this loan. The MPN will serve as your authorization to borrow loans through the Direct Loan program.

Loan Proration

Federal regulations require the maximum annual Federal Stafford Loan amount an undergraduate student may borrow to be prorated in cases where it is known that the student’s remaining period of study will consist of less than one (1) Academic Year.

  • The prorated amount the student may borrow in this period of study is based on a ratio of the number of credits enrolled divided by 24. This amount is then multiplied by the student’s annual loan limit (based on dependency status and grade level) to determine the maximum the student may borrow in their final term of undergraduate study.
  • Stafford Loan eligibility will be prorated based on enrollment after drop/add period expires (first week of class).

Direct Subsidized Loans

Are awarded based on financial need as determined by the results of your FAFSA. The federal government pays the interest while you are in college, and for the first six months after you graduate, leave school, or drop below half-time.

Direct Unsubsidized Loans

For all eligible students (those who have completed a FAFSA), regardless of financial need. You are responsible for paying the interest. You can either let the interest accumulate or pay the interest while you are in school with no penalty.

Direct Parent PLUS Loan

This loan is for parents of dependent students. Parents may borrow up to the cost of education less other financial aid, including any Direct Loans the student may be eligible to receive. The repayment of this loan begins 60 days after the funds have been fully disbursed to the student’s account.

Parent PLUS Loan Borrowers

Federal PLUS Loans enable parents with good credit histories to borrow in order to pay the education expenses of their children. To be eligible, the child must be a dependent undergraduate student enrolled at least half time. The yearly borrowing limit on the PLUS loan is equal to your cost of education minus any other financial aid you receive. The current interest rate and loan fee percentage can be found at https://studentaid.ed.gov/sa/types/loans/plus/parent. The loan fee is deducted from each disbursement and is paid directly to the lending institution. Repayment generally begins at 60 days after the final loan disbursement. There is no grace period. This means that the interest begins to accumulate at the time of the first disbursement and repayment of both interest and principal begins while the student is in school. The parent applying for the loan will need their FSA ID, the student SSN, date of birth, two references, complete with street address, city, state, zip, phone, and if applicable, email address. References are not co-signers, they are people who can assist the department of education should they need to reach you regarding questions on your loan.

How to apply

1. Complete the Free Application for Federal Student Aid (FAFSA). The FAFSA information will be sent to your school’s financial aid office. Northwest State’s school code is 008677.

2. Submit any requested tax documents and any other request information. Once finalized, your Financial Aid Award Notification will be sent to your student email account. To view and accept your awards, you will need to log into your myNSCC account.

3. Complete the PLUS Loan Application. The application authorizes the Department of Education to do a credit check. You can only borrow up to the cost of attendance less any other financial aid that the student accepts. Parents will need their own FSA ID to log into the site.

4. Complete the Federal Direct PLUS Master Promissory Note on the Department of Education website. Parents will need to log in and sign the MPN with their FSA ID.

5. You will receive a credit decision from the Department of Education by email or regular mail. Denied borrowers will receive a co-signer/endorser addendum application. If you choose not to appeal or get a co-signer your student may be eligible to receive additional Direct Unsubsidized Loan.

6. Borrowers who use a co-signer/endorser or who successfully appeal the credit decision must complete PLUS Counseling at www.studentsloans.gov before the loan can be disbursed.

Disbursement

The Federal Direct PLUS Loan will not disburse to the students account until the scheduled disbursement day for the term. Please see the academic calendar for specific disbursement dates. In order for the PLUS loan to disburse, all the loan requirements must be completed and accepted (PLUS MPN and PLUS Counseling as needed).

Excess PLUS Loan Funds

On the PLUS Loan Application you can choose to release any excess PLUS Loan funds directly to the student or have it sent to you as a paper check. If you choose to have the excess PLUS Loan funds to be sent to the student, it will be sent via the refund method that the student elected through their refund preference.

Private Loans

As of January 2011, Northwest State Community College is no longer participating in any private loan programs. Please contact the NSCC Financial Aid Office to see if you have any additional Federal Direct Subsidized or Unsubsidized Loan eligibility to help fund your college education.

Charles E. Schell Foundation Assistance Loan

The Charles E. Schell Loan was established at the request of the Last Will and Testament of Charles Edison Schell to provide educational assistance loans without interest and without security to qualified students. The loan will aid students in securing a practical education that may not otherwise be attainable at NSCC. The eligibility criteria includes:
Minimum 2.0 GPA
Enrolled at least half-time (6 credit hours) during the term the loan is requested
Be a citizen of Ohio, Kentucky, West Virginia or adjoining states
Born in and citizen of the United States of America; student’s parents must also have been born in and are a citizen of the United States of America
No outstanding Charles Schell loan
Between the ages for 18 and 25 years old

To apply for the Charles E. Schell Loan, please complete the Schell Student Loan application and Schell Loan promissory note and return them to the NSCC Financial Aid Office.

NSCC Student Loan Cohort Default Rate

A cohort default rate is the percentage of a school’s borrowers who enter repayment on certain Federal Family Education Loan (FFEL) Program or William D. Ford Federal Direct Loan (Direct Loan) Program loans during a particular federal fiscal year (FY), October 1 to September 30, and default or meet other specified conditions prior to the end of the second following fiscal year.

NSCC Default Rate History

  • FY 2019 2.3
  • FY 20202 0
  • FY 2021 0
  • FY 2018 8.2
  • FY 2017 12
  • FY 2016 13
  • FY 2015 17.9
  • FY 2014 17.3
  • FY 2013 18.2
  • FY 2012 17
  • FY 2011 21.9
  • FY 2010 26
  • FY 2009 18.8

Please refer to the Cohort Default Rate Guide for a more in-depth description of cohort default rates and how the rates are calculated

Master Promissory Note

Student Loan Borrowers

All students who wish to borrow Federal Subsidized or Unsubsidized Loans for any upcoming semesters must complete a new Master Promissory Note.

Parent Borrowers

Parents borrowing a Federal Direct PLUS Loan are also required to complete an MPN. The PLUS loan version of the MPN is also available electronically. The electronic MPN site allows you to complete and sign an MPN over the web using your unique PIN number provided by the U.S. Department of Education. Additional details are included on the site. When completing the electronic PLUS MPN, the parent borrower’s unique PIN number is required.

What do I need to do to complete the MPN?

  1. Complete the Direct Loan MPN
  2. Click the green Sign In button
  3. Login using your FSA ID
  4. In the middle of the page Click on Complete Master Promissory Note
  5. Select Subsidized/Unsubsidized
  6. Follow the steps until finished

You will need your FAFSA PIN, two references, complete with street address, city, state, zip, phone, and if applicable email address. References are not co-signers, they are people who can assist the department of education should they need to reach you regarding questions on your loan.

If you need additional funds please contact the Financial Aid Office in order to determine if you have remaining eligibility. You will be required to fill out the Supplemental Loan Request Form.

Entrance Counseling

Student Borrowers – Entrance Counseling

All Student Loan Borrowers: All students who wish to borrow Federal Subsidized or Unsubsidized Loans for any upcoming semesters must complete the online Entrance Counseling Exam.

What do I need to do to complete the Entrance Counseling?

  1. Complete the Direct Loan Entrance Counseling Exam
  2. Click the green Sign In button
  3. Login using your FSA ID
  4. In the middle of the page Click on Complete Entrance Counseling link
  5. Click on Complete Entrance Counseling link
  6. Select I am an undergraduate student
  7. Continue the steps until finished. The last step after finishing the quiz you must click on the Rights and Responsibilities link in order to finish the counseling.

Exit Counseling

Student Borrowers – Exit Counseling

All students who graduate, drop below ½ time, and/or withdraw from Northwest State and have borrowed student loans must complete the online Exit Counseling. You will be notified by the Financial Aid Office once you need to complete this process.

Please click on the link below and follow the steps.

  1. Exit Counseling
  2. Enter your information to Login
  3. Follow the directions until finished