Student / Parent Loan Disclosure
Dear Student/Parent:
The Federal Family Education Loan (FFEL) and Federal Direct Loan Programs are available to help students finance their educational expenses by borrowing low interest-rate loan funds. If you plan on borrowing a Federal Stafford, Federal Direct or Plus Loan, your first step will be to select a lender of your choice. The lender is the institution from which the money is borrowed. The interest rate and terms of the loan are set by the U.S. Department of Education. Therefore, the real difference among lenders is measured in terms of customer service, borrower benefits, and incentives.
The Financial Aid Department at Northwestern Technological Institute encourages you to conduct your own lender research and select accordingly as borrower benefits vary by lender. Students and parents may obtain additional information regarding changes in the student loan industry, such as lender participation and consolidation options from the FinAid! Financial Aid, College Scholarships and Student Loans website at www.finaid.org or on the Michigan Guaranty Agency's website at www.mgaloan.com. The Financial Aid Department will process any loan request based on your lender of choice who participates in the federal loan program.
For more information on the student/parent loan process, please feel free to contact your lender directly or call a Financial Aid Officer today at (248) 358-4006.
Grants
The Federal Pell Grant is a federally
funded, need-based grant that does not have to be repaid. Federal
Pell Grants are generally awarded only to undergraduate students who
have yet to earn their bachelor's degree. The maximum grant
amount permitted per student is $4731.00 per year. Students who wish
to apply for the Federal Pell Grant must complete the Free
Application for Federal Student Aid (FAFSA)
and meet with the financial Aid Department at Northwestern
Technological Institute.
More information on the Federal Pell Grant can be found on the
Federal
Student Aid Web site
at www.studentaid.ed.gov.
Federal Stafford Loans
The Federal Subsidized Stafford Loan
is a low-interest, fixed-rate, long-term loan made available to
undergraduate and graduate students to help fund their education.
The maximum loan amount permitted per student is $3500.00 per year.
In order to apply for a Federal Subsidized Stafford Loan, students
must first demonstrate need, as determined by a standardized formula.
Students who wish to apply for a Federal Subsidized Stafford Loan
must complete the Free Application for Federal Student Aid (FASFA)
and meet with the Financial Aid Department at Northwestern
Technological Institute. Repayment of a Federal Subsidized Stafford
Loan begins six months after the student's last physical date
of attendance. More information on Federal Subsidized Stafford Loans
can be found on the Federal Student Aid Website at
www.studentaid.ed.gov.
The
Federal Unsubsidized Stafford Loan
is a form of alternative funding for borrowers who do not qualify for
the maximum Subsidized Stafford Loan, or for those borrowers who
require funding beyond the subsidized loan. The maximum loan amount
permitted per student is $6000.00 per year, unless you are an independent undergraduate student or a dependent student whose parents have applied for but were unable to receive a Federal Plus Loan (parent loan), you may borrow up to 9,500. No more than $3,500 of this amount may be in Subsidized Loans. Students
who wish to apply for a Federal Unsubsidized Stafford Loan must
complete the Free Application for Federal Student Aid (FASFA) and
meet with the Financial Aid Department at Northwestern Technological
Institute. Interest on
the Federal Unsubsidized Stafford Loan is not
subsidized by the Federal Government and begins to accrue from the
date of disbursement. Repayment of the principle loan amount will begin six months after
the student's last physical date of attendance. More information on Federal Unubsidized Stafford Loans can be found on the
Federal Student Aid Website
at www.studentaid.ed.gov
A Federal Parent Loan is a
non-need-based loan
offered to the parents of an undergraduate student. This loan is made
from the federal government and is processed much like a consumer
loan. It is dependent upon the borrower's credit rating and does not
have a stated maximum amount. Parents may borrow up to the
difference between education costs and financial aid received.
Repayment begins two months after loan funds have been disbursed and
must be repaid within ten years. To apply for the Federal Parent
Loan, students must still complete the Free Application for Federal
Student Aid (FASFA) as well as meet with the Financial Aid Department
at Northwestern Technological Institute. More information on the Federal Parent Loan can be found on the
Federal Student Aid Website
at www.studentaid.ed.gov
Federal Direct Loan Funding
A Federal Direct Subsidized Loan is a low-interest, fixed-rate, long-term loan made available to undergraduate and graduate students to help fund their education. Under this program, the U.S. Department of Education acts as the sole lender and pays the interest on the loan while the student is enrolled at least half-time. The maximum Direct Subsidized Loan amount per student is $3500.00 per year. In order to apply for a Federal Direct Subsidized Loan, students must first demonstrate need, as determined by a standardized formula. Students who wish to apply for a Federal Direct Subsidized Loan must complete the Free Application for Federal Student Aid (FASFA) and meet with the Financial Aid Department at Northwestern Technological Institute. Repayment of a Federal Direct Subsidized Loan begins six months after the student's last physical date of attendance. More information on Federal Direct Subsidized Loans can be found on the Federal Student Aid Website at www.studentaid.ed.gov
Federal Direct Unsubsidized Loan
The Federal Direct Unsubsidized Loan is a form of alternative funding for borrowers who do not qualify for the maximum Direct Subsidized Loan, or for those borrowers who require funding beyond the Direct Subsidized Loan. Under this program, the U.S. Department of Education acts as the sole lender. The maximum Federal Direct Unsubsidized Loan amount permitted per student is $6000.00 per year, unless you are an independent undergraduate student or a dependent student whose parents have applied for but were unable to receive a Federal Direct Plus Loan (parent loan), you may borrow up to 9,500. No more than $3,500 of this amount may be in Direct Subsidized Loans. Students who wish to apply for a Federal Direct Unsubsidized Loan must complete the Free Application for Federal Student Aid (FASFA) and meet with the Financial Aid Department at Northwestern Technological Institute. Borrowers are responsible for the interest that accrues during any period over the life of the loan. More information on Federal Direct Unsubsidized Loans can be found on the Federal Student Aid Website at www.studentaid.ed.gov.
A Federal Direct Parent Loan is a non-need-based loan offered to the parents of an undergraduate student. This loan is made from the federal government and is processed much like a consumer loan. It is dependent upon the borrower's credit rating and does not have a stated maximum amount. Parents may borrow up to the difference between education costs and financial aid received. Repayment begins two months after loan funds have been fully disbursed and must be repaid within ten years. Interest on a Direct PLUS Loan begins to accrue when the first installment is disbursed. To apply for the Federal Direct Parent Loan, students must still complete the Free Application for Federal Student Aid (FASFA) as well as meet with the Financial Aid Department at Northwestern Technological Institute. More information on Federal Direct Parent Loans can be found on the Federal Student Aid Website at www.studentaid.ed.gov.
