Student Loans

If you are a first-time borrower with North Central Michigan College, you will need to complete loan entrance counseling.  You will be required to sign into entrance counseling using the same FSA ID and password you used to submit your FAFSA.

Complete the loan entrance counseling requirement.

Complete a Master Promissory Note (MPN) with the U.S. Department of Education.  Again, you will be required to sign into entrance counseling using the same FSA ID and password you used to submit your FAFSA.

Complete the Master Promissory Note requirement.

Complete the Parent Plus Application process by clicking the link below.  Once again, you will need to sign on using the same FSA ID and password you used to sign your student's FAFSA.

Complete the Parent Plus Application.

It is vital that you are aware of your rights and responsibilities in the loan process.
Once you thoroughly understand your rights and responsibilities with regard to repaying your loans, you will greatly diminish delays or problems you may encounter.
Your rights and responsibilities include the following:

1. Regardless of whether you completed your academic program, or if your expectations were not met by your program, you must pay your loans.
2. If you are the recipient of multiple loans with multiple loan servicers, it is your responsibility to notify your school of this.
3. You must use money received from student loans for strictly academic expenses.
4. You must notify your loan servicer, in writing, of:

A. Name or address change
B. Failure to enroll at least half-time
C. Failure to enroll for the loan period certified
D. Failure to enroll at North Central Michigan College
E. Withdrawal from school or reduction of attendance to less-than-half-time
F. Transfer between establishments of higher education
G. Graduation

5. If you are eligible, you have a right to defer your financial aid repayments, which suspends principal and interest payments for a certain period of time. Deferments can be requested for a number of reasons, including returning to school on at least a half-time basis.
6. You have the right to consider the loan repayment alternative for which you qualify, as you enter the repayment process. This includes loan consolidation alternatives.

You are required to begin repaying your Federal Direct Loan six months after you graduate, leave school or drop below half-time attendance. Borrowers generally have 10 years to repay these loans. Under a level repayment plan your monthly payment would be at least $50. For example, the monthly payment on a $7,500 Stafford loan with an interest rate of 6.8 percent would be $86.31 under a 10-year repayment plan.

1. Although you may select or be assigned a repayment plan when you first begin repayment, you can change repayment plans any time. There are repayment options that allow you to gradually increase your payments over time or tie the size of your monthly payment to your income. More information on these plans can be found at www.studentloans.gov.
2. You can investigate consolidating all of your education loans so you have one monthly payment. This program also generally allows you to extend the repayment period beyond 10 years.
3. If you experience economic hardship or other circumstances that limit your ability to repay your loan, you might qualify for a deferment or forbearance. Deferment allows you to postpone repayments for certain approved reasons for as long as you are enrolled at least half-time in a post-secondary school, graduate fellowship or rehabilitation program (if you have disabilities). Deferments of up to three years are also available if you are unemployed. Forbearance can delay or reduce your monthly payments. Usually, however, you must still pay the interest on your loan during the forbearance period.

Please note: If you fail to repay your loan, you will be considered in default. If this occurs, your credit rating will be damaged and you may not be able to borrow in the future to pay for a car or home or even to continue your education. Your wages may be garnished and your federal and state income taxes may be withheld; your loan may be sent to a collection agency and you will be liable for collection fees.