Financial Aid & Scholarships

Loans

Students and their parents can apply for separate federal loans to help pay for the cost of the student’s college. To maintain loan eligibility, students must show Satisfactory Academic Progress (minimum credit-hour enrollment and grade point average).

For those who wish to pursue loans, the Financial Aid Office reminds students/parents about their repayment responsibilities regarding their student/parent loan debt. Please be cognizant of your loan balances, recognize the requirements and responsibilities surrounding loan debt, and make quality decisions regarding your debt burden. Routinely check with your lenders to ensure you remain in good standing.

Remember, you can always access your federal loan information and servicer of your loan, look at repayment plan options and other information on the Federal Student Aid website (studentaid.gov). Login to view your personal 'dashboard' that will show all your personal financial aid/loan information:

Federal Student Aid

Federal Student Loans

Federally-administered student loans are called Direct Loans. When you apply for one of these loans, you enter into a contract with the federal government. You will not receive money if you do not complete each step.

  1. Complete the FAFSA.
  2. Complete the Entrance Counseling process. This educates you about your loan rights, responsibilities and repayment obligations. Look for the Entrance Counseling option after you sign in.
  3. Complete Master Promissory Note (MPN). Be sure to click on Complete Loan Agreement for the Subsidized/Unsubsidized Loan(MPN). Do not apply for a Graduate Loan.
  4. Notify the NWC Financial Aid Office of your intent to borrow (email us, call or stop by in person). Loan funds are sent to NWC electronically.

Important NEW Regulatory Information for a Federal Student Loan Borrower

On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law, resulting in changes to federal student aid programs. Some of these changes went into effect immediately, while others will go into effect in 2026 and beyond. For most Northwest College students, the new requirement to prorate (proportionally reduce) Subsidized & Unsubsidized Federal Student Loans if the student does not enroll full time during the academic year will have the greatest impact on their annual federal student aid. Generally, for the 2026-27 academic year forward, this specific change in Federal Student Loan regulations means:

  • If you do not enroll full time during the academic year, your federal student loans will be prorated accordingly. For example, if you enroll in 6.0 credits per semester (half time status), you will only be eligible for half of the annual federal student aid loan amount.
  • If you drop out, or withdraw from, credits during the semester that were part of your Federal Student Aid loan award calculation, your next loan disbursement within the academic year may be prorated accordingly. For example, if you receive a federal student loan disbursement during the fall semester and drop out of, or withdraw from, credits during the fall semester, your annual enrollment status may be adjusted which may result in an adjusted spring loan disbursement. It is possible that you might receive federal student loan disbursement at the onset of the fall semester, but because you drop out of or withdraw from, credits during the fall semester, you may have a significantly reduced spring semester loan disbursement, or be outright ineligible for any student loan disbursement during the spring semester, even if you are enrolled full time for the spring semester.

If you have any questions related to this new Federal Student Aid regulation, effective for the 2026-27 award year forward, contact the Financial Aid Office.

DISBURSEMENTS: All loans must be disbursed in two payments, one at the beginning of the loan period, and the other at the mid-point of the loan period. For example, a loan made only for spring semester will be disbursed in two payments: one at the start of the semester and a second at the mid-point of the semester. Additionally, first time loan borrowers must be enrolled for 30 days before the first loan disbursement can be released and loans for students who drop below half-time enrollment before disbursement will have their loans cancelled. For more information see the NWC Financial Aid Disclosures & Student Consumer Information document.

You will be responsible for these steps later:

Federal Parent Loans

Parents can apply for Direct PLUS Loans from the federal government. Repayment begins after the second loan disbursement (usually the beginning of the second semester of classes). When you apply for one of these loans, you enter into a contract with the federal government. Your student will not receive money if you do not complete each step.

  1. Complete the FAFSA.
  2. Apply for the (Parent) PLUS loan (credit check application)
  3. Complete the Master Promissory Note (MPN). Be sure to click on Complete Loan Agreement for PLUS Loan (MPN). Do not apply for a Graduate PLUS loan.

If your student returns to Northwest for a second year, you will need to resubmit the Federal Direct PLUS Loan Request Form.

Slow Down
For your own protection, read all loan applications and documents carefully. Print a copy of your promissory note and keep it in a safe place.

Don't Lose Your Loan
Before you drop a class, or if you receive a failing grade, make sure you aren't at risk of losing your loan due to Unsatisfactory Academic Progress.

Loans Are a Debt and Require Responsibilities
Remember, you can always access your federal loan information (amounts/servicer) or repayment plan information through studentaid.gov

For comprehensive and current policy information regarding Financial Aid, please review the NWC Financial Aid Disclosures & Student Consumer Information document on our Financial Aid Policies page.

Contact

Financial Aid & Scholarships Office | Fagerberg Annex, FABA116 | FinancialAid@nwc.edu | 307-754-6158 | 307-754-6154 (Fax) | 307-754-6225 (TTY)