If you complete the Financial Aid Free Student Application (FAFSA), you are considered for all of the following loans, grants, and other programs.
Federal Subsidized Stafford Loan
A "SUBSIDIZED" loan is awarded based on financial need as determined by your FAFSA. You will not be charged any interest before you begin repayment or during authorized periods of deferment.
Federal Unsubsidized Stafford Loan
An "UNSUBSIDIZED" loan is not awarded based on need and is considered a last resort type of funding. You must first file a FAFSA to eliminate your eligibility for other types of funding. You will be charged interest from the time the loan is disbursed until it is paid in full. If you allow the interest to accumulate, it will be added to the principal amount of your loan at the time of repayment and additional interest will be based upon the higher amount, resulting in a higher repayment amount.
Stafford Loan Application Process
If you were awarded a Stafford Loan on your award letter, it is because you indicated on your FAFSA that you were interested in a loan. You will have to complete a Master Promissory Note online in order to receive your student loan. By completing the MPN you are agreeing to all terms of the loan. If you decide you do not want any portion of the loan, please indicate the change on your award letter.
When you apply for a student loan, you must select a lender and a guarantor. At NWTC, we certify loans through Great Lakes Higher Education Corporation (GLHEC). If you have previously borrowed from a federal student loan program, we recommend that you stay with your past guarantor and lender. If not, we suggest that you choose one of the following lenders.
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Suggested Lenders: |
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Anchor Bank |
823011 |
Sallie Mae |
862218 |
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Wachovia |
870005 |
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Lender List Selection Criteria
The list of lenders that we recommend is only a suggestion. You are not required to choose one of these lenders. If you wish to choose any other lender, we will process that loan. NWTC does not receive any monetary or other incentives for having these lenders on our list. The lenders that we suggest on our list are there because they have met the following criteria:
- The lender offers benefits to students in the form of fee reductions, interest rate reductions, or other benefits.
- The lender has demonstrated over time that they provide excellent customer service to students.
- The lender allows for seamless electronic processing of all loans, making it easy for the student to apply for and receive their loan funds.
PLUS (Loans for Parents)
PLUS loans enable parents with good credit histories to borrow to help pay the education expenses of each child who is an eligible dependent undergraduate student enrolled at least half-time (6 credits).
PLUS loans are not awarded based on need and are considered a last resort type of funding. Before a parent may request a PLUS loan, you must have completed a FAFSA and your financial aid file must be complete as well. To apply, please complete BOTH of the following documents.
Alternative (Private) Loans
On rare occasions, you may look for additional loans on top of Stafford and PLUS loans. We always suggest caution in pursuing alternative loans, as these loans are not backed by the Department of Education.
The lenders who provide these loans may change terms and conditions according to their own policies and procedures, and the interest rates are usually variable and dependent on credit scores.
Please read the following information about Alternative loans, and then follow the link to 2 year schools. The link provides information about lenders who provide these alternative loans for students attending 2 year schools.
Loan Entrance Counseling Session
If you are a first-time loan recipient you must complete a Loan Entrance Counseling Session prior to receiving your first loan disbursement. If you have already attended a Loan Entrance Session, you are not required to attend a second time.
For your convenience, the Loan Entrance Session is available anytime via the Internet at Loan Entrance Counseling.
Once you have completed the online Student Loan Counseling Session, the information will be sent via e-mail to the Financial Aid Office. Your check will be applied to your student account and a refund sent to you via mail within a week if applicable.
Loan Exit Counseling Session
If you received a loan you must complete a Loan Exit Counseling Session if you drop below half-time enrollment, withdraw, or graduate.
For your convenience, the Loan Exit Session is available via the Internet at Loan Exit Counseling. You may access this session anytime, anywhere.
Once you have completed the online Exit Loan Counseling Session, the information will be sent via e-mail to the Financial Aid Office. This information will be forwarded to your Guarantee Agency as per Federal Regulations.