Federal Loans to Students
Unlike grants or work-study, a loan is money that must be repaid. You, the student borrower, are legally obligated to repay your loans so we encourage you to fully read and understand the terms and conditions before accepting a loan. Please note: You must repay your loans even if you do not complete your program.
The minimum requirements for obtaining a federal loan are a completed FAFSA application, admission into a degree-seeking program, and at least half-time (6 credits) enrollment. At Colorado Northwestern Community College, we encourage students to make informed decisions when taking out a student loan. Only borrow the amount of funds that you need to successfully complete your education.
The maximum amount a first year student (29 credits and below) can borrow is $5,500; no more than $3,500 of this amount may be in subsidized loans.
The maximum amount a second year student (30 credits and higher) can borrow is $6,500; no more than $4,500 of this amount may be in subsidized loans.
Federal Loans to Parents
If a dependent student needs additional funds to meet their estimated cost of attendance, parents can request a Parent Plus Loan to cover remaining educational expenses. Parents must contact the financial aid office to request a Plus Loan.
Unlike grants or work-study, a loan is money that must be repaid. You, the parent, are legally obligated to repay your loans so we encourage parents to fully read and understand the terms and conditions before accepting a loan. Please note: You are responsible to repay your parent loans even if your student does not complete their program.
What are the interest rates for a Federal Direct Student Loans?
The interest rate for a Federal Direct subsidized loan is 4.45% with a first disbursement date between July 1, 2017 and June 30, 2018, the interest rate for a Federal Direct unsubsidized loan is 4.45%, and the interest rate for the Federal Plus (parent loan) loan is 7%. These rates are fixed.
To obtain your Stafford student loan follow these steps:
- Log into your “Crossroads” account at www.cncc.edu and accept your loans.
- Complete an Entrance Loan Counseling at www.studentloans.gov – click the “sign in” button. (You will need your FSA ID you created to fill out the FAFSA)
- Complete your Master Promissory Note at www.studentloans.gov.
Once these steps have been completed, your loan will be certified by the financial aid office. Direct student loans pay out in two disbursements usually this is fall/spring, single semester loans are still paid out in two disbursements with the first half being paid out after the drop date of classes and the second approximately one month later. For first time borrowers the first disbursement is always 30 days after the first day of school.
Other important financial aid information
What about alternative/private loans?
(Alternative or Private loans are not administered through the Direct Loan program) Some programs, such as Aviation Technology, Aviation Maintenance and Dental Hygiene, have costs higher than the federal loan limits can cover. Other programs, such as refresher courses and short certificate programs (less than 15 weeks), may not be eligible for financial aid. An alternative loan may be the only option for meeting educational expenses. Due to the economic crisis alternative or private loans are becoming harder to obtain and can have a much higher interest rate.
How do I get a private/alternative Loan?
The best way to find banks that provide private/alternative student loans is to do a web search and type in “alternative student loans”. This will give you a list of potential funding sources. Once you pick a bank you need to make sure they will loan to you for attendance at Colorado Northwestern Community College. Note: not all banks loan to students attending a community college.
Most banks will require you to have a co-signer. The bank will do a credit check on both you and your co-signer so make sure you pick a credit worthy co-signer.
Once your loan has been approved by the bank they will notify the financial aid office to certify the loan. The financial aid office will certify that you are enrolled and that you are eligible for a certain amount of money. Students cannot borrow more than their cost of attendance.
Depending on the bank, and type of loan you choose, they may ask you for your cost of attendance. You can contact the financial aid office at 970-675-3204 or by email to Merrie Byers to obtain this information.
All loan funds will be sent to CNCC. Funds will not be mailed directly to your home. Loans are disbursed in two or more equal disbursements. Your first disbursement will be no earlier than the end of the drop/add period, with the second disbursement occurring midpoint through the loan period. Single semester loans are disbursed in two disbursements. Each loan disbursement will be assessed an origination fee, the origination fees are assessed by lenders to help offset the cost of processing the loan. The fee is 1.066% for loans disbursed between October 1, 2017 and September 30, 2018.
Loan Repayment Schedule Estimate
Use the following chart to help estimate the repayment amount of your student loan(s).
Contact us if you’re having trouble making your payments, or to learn more about other repayment plan options, including plans based on your income.
Visit StudentLoans.gov to use a customized Repayment Estimator. See how much you’ll pay monthly and overall based on your loan information
The Federal Direct Loan Repayment Estimates chart is based on the following:
Standard repayment plan and assume equal monthly payments over a period of up to 10 years (120 months).
The minimum monthly payment required under the standard repayment plan is $50. Some loan balances will be paid in full in less than 120 months.
Dollar amounts are rounded to the nearest dollar.
Amounts shown are estimates only. Your actual payment and interest amounts may vary.
(Interest rate for Direct Loans with a first disbursement date between July 1, 2016 and June 30, 2017)