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Code of Conduct for Financial Aid Personnel
The Higher Education Opportunity Act, signed into law on August 14, 2008, requires this code of conduct. This code is applicable to all those with responsibilities related to Title IV federal loans. It prohibits conflicts of interest with regard to loans. Code of Conduct for Financial Aid Personnel
Federal Direct Loans
Normandale Community College participates in the William D. Ford Federal Direct Loan Program. The Direct Loan Program is a guaranteed student loan, which may be subsidized, unsubsidized or both.
Under the Direct Loan program students will apply for and receive their loan funds directly from the U.S. Department of Education.
As a result of legislation enacted in July 2012, eligibility for the Direct Loan interest subsidy will be limited for NEW BORROWERS (students with no outstanding Direct Loan balance) on or after July 1, 2013. The law restricts the period of time for which a borrower may receive subsidized loans, in the aggregate, to 150 percent of the published length of the student's current educational program. Once the student reaches that limit, he or she may borrow only unsubsidized loans, and interest begins to accrue on the student's outstanding subsidized loan. For more information, go to 150% subsidized loan limits.
You may review information about managing your federal student loans, completing your Master Promissory Note, information about entrance and exit counseling, consolidation, and repayment options at the studentloans.gov website.
General Loan Information
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 E-services. 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 952-358-8250 or email Financial Aid. If you have questions concerning your rights and responsibilities of being a Federal Direct 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 952-358-8248 or email.
Before You Borrow
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 $14,568 in federal student loans.
For additional information about your Loans and how to Manage your Spending, look at options on Plans to Repay or learn about Loan Default and Making your Finances a Priority. Complete the Financial Awareness Counseling offered at Studentloans.gov
The Loan Period for the 2015-2016 academic year is August 24 - May 13 for a Full-Year Loan.
The total amount borrowed will be split equally and disbursed in TWO separate payments, half disbursed fall term and half disbursed spring term.
If you are borrowing a loan for only one term the total amount borrowed will be split equally and disbursed in two separate payments, the first half at the beginning of the term and the second half at the midpoint of the term.
All first-time direct loan borrowers who have never had prior college attendance will be subject to a 30-day delay before their student loan can be disbursed. The 30-day delay affects only the first loan disbursement.
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 aid eligible credit hours (half-time) during each term of the loan period. You must also be registered for at least 6 aid eligible 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 may 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 loan Exit Counseling once you graduate, withdraw, or drop below a half-time (6 credits) enrollment.
For additional Exit Counseling information check out the Exit Counseling Guide for Direct Loan Borrowers.
What is a Loan Repayment Servicer and How Does it Affect Me?
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. If you do not know your loan servicer, go to the US Department of Education National Student Loan Data System (NSLDS).
Maximum Loan Limits
Annual Loan Limits 2015-2016
Federal Direct Subsidized:
Federal Direct Unsubsidized:
Federal Direct Unsubsidized:
* less total Subsidized loan for same enrollment period
Aggregate Loan Limits
Dependent Student: - $31,000 - total of all Federal Subsidized and Unsubsidized loans (Direct and FFELP). However, no more than $23,000 can be Subsidized (Direct and FFELP).
Independent Student: - $57,500 - total of all Federal Subsidized and Unsubsidized loans (Direct and FFELP). However, no more than $23,000 can be Subsidized (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 loan will not automatically be discharged in bankruptcy.
Subsidized Federal Direct Loan - during the in-school period, principal payments deferred; government pays all interest. Unsubsidized Federal Direct 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).
A six-month period before the first payment must be made on a Subsidized or Unsubsidized Federal Direct Loan. The grace period begins the day after the borrower ceases to be enrolled half-time.
Applying for a Federal Direct Loan - Student
Federal Direct Loans can be either "subsidized", a need-based loan that the government pays the interest while you're in school and during eligible periods of deferment, 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 or Unsubdized Direct Loan is 4.29% on loans first disbursed on/after July 1, 2015.
For additional information regarding the Federal Direct Loan Program (DL) go to FSA's Direct Loans.
In order to apply for loans, you must have received your financial aid award notification from Normandale Community College for the appropriate term. Once you have received your award notification, you must complete Loan Entrance Counseling, a Master Promissory Note and Request your Direct Loan dollar amount through e-services in order for us to disburse your loan funds. For guided assistance on completing these three steps, please click here to link to our AskUs page.
Applying for a Federal Direct PLUS Loan - Parent
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 6.84%. 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.
To apply for a Federal Direct PLUS loan, please click here to link to our AskUs page.
Applying for Additional Loan Assistance
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).
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.