To receive any federal funds (grants and/or loans), you must first complete the Free Application for Federal Student Aid (FAFSA). Federal loans are a type of financial assistance to help a student further their education and MUST BE REPAID. Students have the ability to refuse all or borrow less than the maximum student loan amount allowed.

Federal Direct Subsidized Loans

• Must be an undergraduate student who has not earned a bachelor’s degree
• Must be enrolled in at least six credits that are financial aid eligible and applicable to your major
• Low-interest rate
• The government pays the interest while you are attending college
• Based on financial need

Federal Direct Unsubsidized Loans

• Must be enrolled in at least six credits that are financial aid eligible and applicable to your major
• Interest starts accruing as of the day of disbursement
• May pay for interest while attending school

Entrance Counseling

• Required for first-time loan borrowers.
• Once completed, good for ten years.

Master Promissory Note

• Required for first-time loan borrowers.
• Good for ten years unless no loan has been certified, then good for one year.

Federal Direct Parent PLUS Loan

1. Parents of a dependent undergraduate student may apply to help with the student’s educational cost.
2. A parent must fill out the Federal Direct PLUS Loan application form and credit check.
3. Parent Plus Loan Application Instructions
4. Parent must meet the general eligibility requirement for federal student aid as well as meet credit criteria for obtaining the loan.
5. Student must be enrolled in at least six credits in a financial aid-eligible program.
6. Total amount cannot exceed the school’s budget.
7. If the parent’s credit is approved and the applicant wants to accept the PLUS loan, the parent must complete the master promissory note online at www.studentaid.gov before funds can be disbursed.
8. If the parent is denied based on credit criteria, they will be notified via postal mail, and the student should contact the financial aid office regarding additional unsubsidized loan eligibility.

Private Education Loan

• Strongly encouraged to maximize federal loans before considering.
• Private Education Loan

Exit Counseling

• Required for borrowers who graduate, drop below six credits, or leave school.

Student Loan Cohort Default Rates

• National Student Loan Cohort Default Rate
  • To find Northland Community & Technical College’s student loan cohort default rate, under “Cohort Default Rates,” click on “Three-Year Searchable Default Rate Database.”
  • Then enter “002385” for OPE-ID and “Search.”
  • Click on the hyperlink for “Northland Community & Technical College” and view Northland’s CDR for the last 3 years.
• Northland Cohort Default Rates

Student Loan Advocate

If you are having issues with your student loan lender or servicer, the Student Loan Advocate with the Minnesota Department of Commerce is here to help. To file a complaint, please visit their web page. For general questions, please contact Student Loan Advocate at jabra.kawas@state.mn.us or 651-539-1022.