Federal Stafford Student Loan

There are two types of Federal Stafford Student Loans, Subsidized and Unsubsidized.

To be eligible for a loan you must:

Be a United States citizen or national, permanent resident, or an eligible non-citizen.
Be enrolled at least half time (6 credits) in an eligible program
Be making Satisfactory Academic Progress
Not be in default on a Stafford, PLUS, SLS or Consolidation Loan
Not owe a Title IV refund
Not have been convicted of any offense under state or federal law involving the sale or possession of a controlled substance

Subsidized Federal Stafford Student Loan

A Subsidized loan is awarded based on the student's financial need as computed by the Financial Aid Office and the Federal Processor. The U.S. Department of Education pays the interest on the loan while the student is enrolled for at least 6 credits and during the 6 month grace period once the student ceases enrollment.

If a student is not enrolled for a period of six months or longer, the student will go into repayment. At that time interest will begin to accrue at a fixed interest rate not to exceed 8.25% (Stafford Loans disbursed on or after July 1, 1995). Once in repayment the minimum monthly payment on a loan is $50.00. A 3% origination fee may be subtracted from the loan at the time of disbursement.

Unsubsidized Federal Stafford Student Loan

An Unsubsidized loan is not awarded on the basis of need. If a student is not eligible for a full Subsidized Stafford Student Loan, the student may be awarded BOTH a Subsidized and an Unsubsidized loan.

The U.S. Department of Education DOES NOT pay the interest while the student is in school. Interest accrues at a rate not to exceed 8.25% and is fixed. An interest only payment can be made while the student is in school or it can be deferred. Once in repayment the minimum monthly payment on a loan is $50.00. A 3% origination fee may be subtracted from the loan at the time of disbursement.

Annual Loan Limits

The figures listed below are maximum yearly (Fall, Spring and Summer semesters) amounts a student may borrow. The amount you are awarded may be less than the Annual Limit based on other aid received.

Dependant Student (per FAFSA guidelines)

Grade Level	Subsidized/Unsubsidized Loan	Cumulative Credits
Freshman	$3,500	0-32
Sophomore	$4,500	32-64

Independent Student (per FAFSA guidelines)

Grade Level	Subsidized/Unsubsidized Loan	Cumulative Credits
Freshman	$3,500 + $4,000	0-32
Sophomore	$4,500 + $4,000	32-64

*** Fill out a Loan Request for the 2007-08 Academic Year ***

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Northwestern Michigan College Financial Aid Office
1701 E. Front. St.
Traverse City, MI 49686

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