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Student Loans

For more Student Loan information please contact:

• Charley Estes
• Rachael Day

Quick steps for a Direct Loan

1. Complete the FAFSA for the appropriate aid year (2011-2012 and or 2012-2013) http://www.FAFSA.gov.
2. Complete a GNTC Direct Loan application (2011-2012 loan application and or 2012-2013 loan application). Direct Loan applications are available online on the Forms page or on any campus in the financial aid office. Completed applications can be submitted to any GNTC Financial Aid Office.
3. Complete Entrance Counseling for Direct Loans at http://www.StudentLoans.gov.
4. Sign a Master Promissory Note (MPN) for Direct Loans using your Federal Student Aid PIN at http://www.StudentLoans.gov.

General Direct Loan Information

Federal Direct Loans are low-interest student loans that must be repaid after you graduate or drop below half-time enrollment. Direct Loans are a form of federal financial aid, and may only be received by students who are::

• Enrolled half-time - (six credit hours) or more within current program of study (repeat courses will not be included in the six credit hours)
• Making Financial Aid Satisfactory Academic Progress (SAP). - The Financial Aid Satisfactory Academic Progress policy is available in the Office of Student Financial Aid and online. Scroll down to step 3.
• Eligible for Federal Aid
• Quick Loan Facts

The Subsidized Direct Loan interest rate is a fixed rate of 3.4 for loans disbursed on or after July 1, 2011. Unsubsidized Direct Loans have a fixed interest rate of 6.8% for loans disbursed on or after July 1, 2006. Repayment begins six months after you graduate or drop below half-time enrollment. This six month grace period is to allow you time to find a job before repayment begins on your Direct Loan. The Subsidized Direct Loan interest rated is a fixed rate of 6.8% for loans disbursed on or after July 1, 2012.

The Office of Student Financial Aid determines your eligibility for the Direct Loan based on the results of your FAFSA (Free Application for Federal Student Aid), cost of attendance, and other financial aid received. This includes agency payments such as Vocational Rehabilitation, Workforce Investment Act (WIA), and Trade Assistance Act (TAA), are used to determine eligibility for the Unsubsidized Direct Loan. It is the student's responsibility to notify the Financial Aid Office of any outside scholarships or agency payments..

Subsidized Direct Loan: You must have financial need (based on FAFSA results) to qualify for the Subsidized Direct Loan. You don't pay interest on a Subsidized Direct Loan while in school or during grace or deferment periods - the government pays it for you. Subsidized Direct Loans disbursed after July 1, 2011 will have a 3.4% fixed interest rate. Loans disbursed after July 1, 2012 will have a 6.8% fixed interest rate.

Unsubsidized Direct Loan: This version of the Federal Direct Loan is not based on financial need. However, the amount of the loan cannot exceed the cost attendance. The borrower is responsible for all interest charges on an Unsubsidized Direct Loan from the time the loan is received. While you are not required to make payments while you're in school or during grace or deferment periods, we recommend that you pay interest quarterly. Any accrued interest that is not paid will be added (capitalized) to the loan balance when you enter repayment. Unsubsidized Direct Loans have a fixed interest rate of 6.8% for loans disbursed on or after July 1, 2006.

Annual Loan Limits:

The Stafford loan amount students are offered is based on their earned credit hours toward their current program. As a two year school, GNTC cannot award above the sophomore level for Stafford loans. Loan amounts are automatically split between terms.

Federal Direct Loans for a 12-month period (Fall-Spring-Summer) are:
Students under 30 earned credit hours (Freshman) = $3500 per year Subsidized Direct Loan
Students at 30 earned credit hours or more (Sophomore) = $4500 per year Subsidized Direct Loan
Students who are listed as dependent according to their FAFSA = $2000 per year Unsubsidized Direct Loan
Students who are listed as independent according to their FAFSA = $6000 per year Unsubsidized Direct Loan.

Students have the option of requesting additional loan funds in Stafford loans. The awarding of additional funds is based on a student’s dependency status (Dependent/Independent) and their cost of attendance.

Students wishing to adjust their loan funds must complete a Loan Change Request Form. The Loan Change Request Form can be found within the financial aid office on all GNTC campus locations.

How to Apply for a Direct Loan

Step 1: FAFSA - Complete the Free Application for Federal Student Aid (FAFSA) and have the results sent to Georgia Northwestern Technical College (school code 004024). You may complete the FAFSA online at http://www.FAFSA.gov. Indicate on the FAFSA that you wish to be considered for student loans. Georgia Northwestern Technical College must have the results of your FAFSA and your application must be complete before we will process a loan application.

1. Complete the Georgia Northwestern Loan Application Form for the appropriate academic year. The GNTC Loan Application Form can be found within the financial aid department at any campus location. Be sure to read attached page of application which list in detail the terms and conditions of Direct Student Loans. The top page of the application packet needs to be remitted to a Financial Aid office on any campus location.

Step 2: Complete Entrance Counseling for first-time borrowers at Georgia Northwestern Technical College

1. Direct Loan Entrance Counseling must be completed online at http://www.StudentLoans.gov. Staff members in the Office of Student Financial Aid are available to answer questions after entrance counseling is complete. Students are encouraged to ask questions to ensure full understanding of the Federal Direct Loan program.
2. Disbursement delay for first-time freshmen - First-time freshmen loan proceeds are disbursed no earlier than 30 days after the first day of classes.

Step 3: Master Promissory Note (MPN) online-For the 2011-2012 and/or for the 2012-2013 academic years.  All students borrowing student loans must complete a Master Promissory Note for Direct Loans. The Master Promissory Note can be completed online at http://www.StudentLoans.gov.

After you have completed your part of the process, the office of Student Financial Aid calculates your eligibility for the Federal Direct Loan based on your FAFSA results, cost of attendance, and other financial aid received. (If additional aid is received after the loan calculation, your financial aid may be adjusted in order to ensure the cost of attendance is not exceeded.) The office of Student Financial Aid electronically transmits your Direct Loan eligibility. Once we have received confirmation of your eligibility for the loan, your loan funds are sent electronically to GNTC.

Exit Counseling

All students must complete exit counseling for their Stafford loans. Students are required to complete the exit counseling when their credit hours fall below halftime (6 credit hours); when they withdraw from all classes; and/or upon graduation. If a student does fall below halftime, completely withdrawal, or graduate they must stop buy any GNTC Financial Aid office to update their current information and receive their exit counseling documentation.  The exit counseling process is finalized online at the National Student Loan Data System website via this link: http://www.StudentLoans.gov

Loan Changes

A student may change or update their loan request for the current academic year by completing a Loan Change Request Form. 

You will choose “Exit Counseling” on the home page and then use your personal information and FAFSA pin number to sign into the site to begin the counseling session. Be prepared to read and answer the quiz question throughout the process. GNTC will be notified when you have completed the process.