In order to apply for loans, you must have received your financial aid award notification from Normandale Community College for the appropriate term. Your award notification indicates your eligibility for federal student loans.

You may access your award notification at Your Info ON THE WEB. Follow the login instructions on the screen. Once you have logged in, click on the Student tab at the top. On the left side, under your Student ID click on Your Financial Aid Award letter. 

For information specific to loans at Normandale call 952-487-8250 or send an email to finaid @normandale.edu.  If you have questions concerning your rights and responsibilities of being a Stafford loan borrower, the terms and conditions of your loan or the loan application process, please contact Jane Erbele in the Financial Aid and Scholarship Office at 952-487-8248 or jane.erbele@normandale.edu.

A federal loan is a loan, not a grant. Before you borrow, make sure you can afford the monthly payment.  You must repay the funds you borrow, any fees associated with the loan, and any interest that accrues on the loan.  All fees are deducted from your loan prior to disbursement, however, you remain responsible for repaying the entire loan amount. On average, students at Normandale Communtiy College borrowed $6,864 in federal student loans.

The Loan Period for the 2009-10 academic year is August 24-May 12 for a Full-Year Loan

No loan proceeds are disbursed prior to the sixth day of the term. If your loan period is for Fall and Spring terms, two disbursements will be issued (one for each term) and each will be for one-half of your total loan. If your loan period is just for one term, you will receive your loan funds at the beginning of that term.

You must complete Student Loan Entrance Counseling before any loan application will be processed.

Your Pell Grant eligibility must be determined.

You must be registered for and complete a minimum of 6 credit hours (half-time) during each term of the loan period. You must also be registered for at least 6 credits at the time your loan is certified and disbursed by Normandale.

Your loan may require proration (a reduction in what you are eligible to borrow) if your final period of enrollment at NCC is just one semester.

You must declare a major and be enrolled in a certificate or degree program at NCC.

You must maintain satisfactory academic progress.

Your loan proceeds must be disbursed (and therefore you must be eligible to receive them) within 3 days of the disbursement date or your loan will be canceled.

It is very important that you contact the appropriate offices (such as Financial Aid and Scholarship Office, Records and Business Offices) if you decide to completely withdraw prior to completing your program of study at Normandale to understand how withdrawing will affect your loan eligibility and repayment.

You must complete EXIT Counseling prior to leaving Normandale.

A servicer is the agency that services your loan account when you enter repayment. You communicate with the servicer, not your lender, when you have questions on your loan status, amounts owed, or changes in your enrollment status or address. Each time your loan is sold, you are notified about where to direct your questions. Ask your lender about its servicing policies.

Annual Loan Limits 2009-2010

* less total Subsidized Stafford for same enrollment period

Dependent Student: - $31,000 - total of all Federal Subsidized Stafford and Unsubsidized Stafford loans (Direct and FFELP). However, no more than $23,000 can be Subsidized Stafford (Direct and FFELP).

Independent Student: - $57,500 - total of all Federal Subsidized Stafford and Unsubsidized Stafford loans (Direct and FFELP). However, no more than $23,000 can be Subsidized Stafford (Direct and FFELP).

You have a choice of repayment plans and the monthly payment will depend on the size of your debt and the length of your repayment period.  FSA's Direct Loan Payment plans explains available repayment options as well as provides a loan repayment calculator.

To view your Federal Student Loan History go to www.nslds.ed.gov.

Your Federal Direct Stafford loan will not automatically be discharged in bankruptcy.

Subsidized Federal Direct Stafford Loan - during the in-school period, principal payments deferred; government pays all interest. Unsubsidized Federal Direct Stafford loan - can be deferred while in-school, but interest accrues to the borrower and must either be paid or capitalized (added to principal balance of loan).

Subsidized Federal Direct Stafford loan - six month; government pays all interest. Unsubsidized Federal Direct Stafford loan - six months; borrower responsible for all interest.

Federal Direct Stafford Loans can be either "subsidized", a need-based loan that the government pays the interest while you're in school and during your grace period or "unsubsidized", a non-need-based loan that you pay all the interest (although you can have the interest payments deferred).

The interest rate for a Subsidized Direct Stafford Loan is 5.6% on loans first disbursed on/after July 1, 2009; the interest rate for an Unsubsidized Direct Stafford Loan is 6.8%.

For additional information regarding the Federal Direct Loan Program (DL) go to FSA's Direct Loans.

See also our DL Frequently Asked Questions.

Have you received an award letter from Normandale Community College for the award year for which you are seeking aid?

• Yes, I have received my award letter.
  
  
  
  
• No, I have not received my award letter.

PLUS Loans enable you, the parents, to borrow to help pay the education expenses of your dependent student who is enrolled for at least six credits. Your son or daughter must have completed the FAFSA and received a current award letter from Normandale if you are considering applying for a PLUS loan. The yearly limit on a PLUS Loan is equal to the cost of attendance minus any other financial aid your student has received.

To be eligible to receive a PLUS Loan you, the parent, will be required to pass a credit check. You can't be turned down for having no credit history - only for having an adverse one. If you don't pass the credit check, you may still be able to receive a loan if someone, such as a relative or friend who is able to pass the credit check, agrees to endorse the loan. An endorser promises to repay the loan if you fail to do so. You may also qualify for a loan without passing the credit check if you can demonstrate that extenuating circumstances exist. You and your student must also meet other general eligibility requirements for federal student financial aid.

The interest rate is fixed at 7.9%. The first payment of the loan is due within 60 days after the final loan disbursement for the period of enrollment for which you borrowed. There is no grace period for these loans. Interest begins to accumulate at the time the first disbursement is made, and you will begin repaying both the principal and interest while your student is in school. Effective July 1, 2008, you can choose to defer payments until six months after the date your student ceases to be enrolled at least half time.  Accruing interest can be paid monthly or quarterly, or be capitalized quarterly.

Loan funds are sent to Normandale.  Loan funds will first pay any outstanding charges owed to Normandale for your student. If any loan funds remain, they will be disbursed to your student unless you notified us otherwise. Any remaining loan money must be used for educational expenses.

Has your dependent student received an award letter?

• Yes
• No

If you require more financial assistance than appears on your award letter, you may apply for additional student loans from private education loan programs.  These loans may have higher interest rates than federal loans and generally should be considered as a borrowing option after you have applied for your federal loans.  Normandale Community College will not recommend, and will not refer students to, any specific private student loan program.

Normandale Community College has certified private education loans in the past three years for the following lender(s). 

• Minnesota SELF Loan

By clicking on the name of the lender you will leave the Normandale Community College website.  Please contact the lender for information regarding terms and conditions or to apply for a loan. 

Under the Truth-In-Lending Act rules, private education loans are subject to self-certification, three consumer disclosures at specific times in the application process, and a three day delay in disbursement.  Due to the number of steps involved in the private loan application process, applicants should allow a minimum of three weeks for processing.

Neither Normandale Community College nor its employees receive benefits or remuneration as a result of your choice of lender.  See our Student Loan code of Conduct for additional information.