Pierce Administration Building - Room 102
NIACC
500 College Drive
Mason City, IA 50401
641-422-4168 or
1-888-466-4222 ext. 4168
Fax: 641-422-4167

Monday - Friday 7:45 a.m. - 4:15 p.m.

Title IV School Code: 001877
Priority Deadline for Campus Based Aid: March 1

Staff:
Mary Bloomingdale, Director
Rhonda Nesheim-Kauffman, Associate Director
Carla Alexander
Rhonda Groshens

Federal Loans

Federal Direct Stafford Loan Program

Students at NIACC are able to request student loans to help finance their education. NIACC participates in the William D. Ford Federal Direct Loan program. This means that you work with the NIACC Financial Aid Office on requesting your student loan. The federal government has set limits as to how much money a student may borrow. Freshman may request $3,500 and sophomores $4,500. The NIACC Financial Aid Office will take your loan request and determine the type of Stafford loan you are eligible to receive. All Stafford loans have a fixed interest rate of 6.8% for the 2007-08 year.

Subsidized Stafford Loans: Subsidized loans are loans that are based upon need. The federal government pays the interest on the loan while the student is enrolled at least half-time (6 or more credits) and during the 6-month grace period after completing school.

Unsubsidized Stafford Loans: This loan is also a low-interest loan like the subsidized loan except that interest begins adding up immediately. The Financial Aid Office uses the results from your FAFSA to determine Subsidized loan eligibility before awarding Unsubsidized loans. This program was established to allow students, regardless of income, to receive student loans. The borrower is responsible for all interest which occurs during any enrollment, grace or deferment period. If you are an Independent student (not required to provide parent information on the FAFSA), you may borrow an additional $4,000 each academic year under this loan program.

** If this is your first time to borrow a student loan, the federal government wants you to understand your rights and responsibilities as a loan borrower. You will learn about your loan by completing a loan entrance counseling session. This session is found easily by logging on to the Direct Loan website at www.dl.ed.gov. Be sure to list North Iowa Area Community College as the school that you want your results sent to so we know that you have completed your session. You will need to have your entrance counseling session completed before we can give you your student loan.

Federal Parent Loan for Undergraduate Students (PLUS): This program for parents provides a long-term loan from the federal government. Parents may borrow up to the student’s cost of attendance less any financial aid. Application for these loans is easily done through the NIACC Financial Aid Office. The interest rates are fixed and change annually on July 1st. The annual interest rate cannot exceed 9%. The 2007-2008 academic year interest rate is 7.9%. Loan proceeds are put to the students account first and then the excess is sent to the parent. Repayment of the PLUS loan begins 60 days after the second disbursement of the loan. If the family borrows a PLUS loan, typically the first disbursement happens in the Fall semester and the second in January. This would mean you would begin repaying the PLUS loan approximately in March. The Direct Loan Servicing Center will contact you to let you know the repayment amount and start date.

Federal Nursing Loan: The Federal Nursing loan is available to students enrolled in the Associate Degree Nursing program at NIACC. To receive this loan, the student must demonstrate financial need on their FAFSA. The number of awards is based upon fund availability. This loan has a 5% interest rate and has a 9-month grace period before students begin repayment after completing their program or dropping below half time attendance.

Alternative Loan Programs: There are other educational loan opportunities available to students and families. These types of loans are designed to assist families who need more financial assistance. If you are interested in finding out more about alternative loans, please contact the Financial Aid Office.

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