Social Media Links NWICC Twitter Link NWICC Facebook Link NWICC LinkedIn Link


Student Loans

Loan Application Process
In order to complete the student loan application process you must have:
  1. Completed a  Free Application for Federal Student Aid (FAFSA).
  2. Received an Award Letter from NCC indicating your loan eligibility.
If you have met these two conditions and you want to apply for a student loan, please complete these final steps located within My Place.
Parent PLUS Loan Application Process
The Direct PLUS Loan Program is designed for the parents of dependent students enrolled at least half-time. This loan is available to a parent to supplement their child’s financial aid package up to the schools cost of attendance.
The parent who wants to borrow a PLUS loan must complete the following two steps:
             1. PLUS Loan Authorization Form (LAF) On this form the parent will indicate the amount of loan they want to borrow and which terms the loan proceeds are for:
                       º 2017-2018 - (Fall 2017, Spring 2018, Summer 2018)
             2. PLUS Application & Master Promissory Note – The parent borrower will need to “Log In” with their FSA ID used to sign the student’s FAFSA. To view/print instructions prior to completing the application or promissory note click here.          
Loan Information
• 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.

Entrance Counseling
If you are a NEW borrower to NCC requesting a student loan, you will need to complete the Direct Loan Entrance Counseling at before NCC can disburse your loan. If you have left NCC and are now returning, you are considered to be a new borrower.

Entrance Counseling will help you understand the following:
    • What a Direct Loan is and how the loan process works
    • How to manage your education expenses
    • Other financial resources to consider to help pay for your education
    • Your rights and responsibilities as a borrower

Exit Counseling
If you have borrowed a Student Loan while attending NCC and you are now graduating, or have withdrawn or dropped below half-time, you are required to complete the Online Exit Counseling session. The average annual indebtedness for students who borrowed Federal student loans while attending Northwest Iowa Community College during the 2012–2013 academic year was $5,358.

Before beginning the Online Exit Counseling session make sure you have all the required information listed below. It will take approximately 30 minutes to complete your exit counseling. If you end the session before completing, it will not allow you to begin where you left off so make sure you have all the requested information before you begin.

You will need the following information BEFORE starting this session:
  • Your FSA ID (username and password)
  • Your driver’s license number
  • Name, address, telephone number of your expected employer
  • Name, address, and telephone number of a Parent or Next of Kin
  • Names, addresses, telephone numbers of two references. The two references cannot reside at the same address.
150% Rule for First-Time Borrowers
Effective July 1, 2013, Federal law restricts the benefits of the Direct Loan subsidy to a limit of no more than 150% of a student’s program length (measured in academic years) for new borrowers. (A new borrower is an individual who has no outstanding balance on a Direct Loan or on a FFEL Program loan on July 1, 2013, or on the date the borrower obtains a Direct Loan after July 1, 2013.) Once that limit has been exceeded, a student may borrow only unsubsidized loans and will begin to incur interest charges on outstanding subsidized loans. For example, a student enrolled in a two-year program will have three years’ worth of subsidized loan eligibility (150% of 2 years=3).

Because the maximum eligibility period is based on the length of the student’s current program of study, the maximum eligibility period can change if the student changes to a program that has a different length. If a student receives Direct Subsidized Loans for one program and then changes to another program, the Direct Subsidized Loans received for the earlier program will generally count toward the student’s new maximum eligibility period.

The U.S. Department of Education will undertake the tracking responsibilities to determine when the subsidy limit has been reached, inform schools of a borrower’s subsidy usage, and notify borrowers when the limit has been exceeded. The borrower becomes responsible for accruing interest during all periods as of the date the borrower exceeds the 150% limit.

Grace Period Interest Subsidy Reinstated
Borrowers of subsidized Stafford Loans first disbursed on or after July 1, 2014 are once again eligible for an interest subsidy during the 6-month grace period. The subsidy during the grace period had been temporarily removed by the fiscal year 2012 budget bill for loans first disbursed on or after July 1, 2012, and before July 1, 2014.
Help with Resolving a Problem or Dispute
It is important to keep all of your student loan papers and correspondence for your records. If you have a problem with a federal student loan, you should contact your loan holder or loan servicer to try and resolve the problem. If you are unable to resolve the problem on your own, you may contact the Federal Student Aid (FSA) Ombudsman for assistance. The FSA Ombudsman works with federal student loan borrowers to resolve loan disputes or problems from an impartial, independent viewpoint. You can reach FSA Ombudsman at:

FSA Ombudsman Group
P.O. Box 1843
Monticello, KY 42633
Toll-free telephone: 877-557-2575