Review our index of terms and definitions to reference for online loan applications.
A federal loan is a loan, not a grant. Before you borrow, make sure you can afford the monthly payment. You must repay the funds you borrow, any fees associated with the loan, and any interest that accrues on the loan. All fees are deducted from your loan prior to disbursement, however, you remain responsible for repaying the entire loan amount.
For the 2019-20 school year, 14.7% of Normandale students borrowed, with the student borrowing on average borrowed $13,669 in federal student loans.
Normandale's 3-year cohort default rate for 2017, the most recent year available, was 10.9%. For information about the national average Cohort Default rate, as well as specifics by institution type, visit Federal Student Aid's default management site.
For additional information about your loans visit the Federal Student Aid site and find topics like how to manage your spending, plans to repay, loan default, making your finances a priority, Financial Awareness Counseling and more.
The Higher Education Opportunity Act, signed into law on August 14, 2008, requires this code of conduct. This code is applicable to all those with responsibilities related to Title IV federal loans. It prohibits conflicts of interest with regard to loans.
Normandale Community College participates in the William D. Ford Federal Direct Loan Program. The Direct Loan Program is a guaranteed student loan, which may be subsidized, unsubsidized or both.
Under the Direct Loan program students will apply for and receive their loan funds directly from the U.S. Department of Education.
As a result of legislation enacted in July 2012, eligibility for the Direct Loan interest subsidy will be limited for NEW BORROWERS (students with no outstanding Direct Loan balance) on or after July 1, 2013. The law restricts the period of time for which a borrower may receive subsidized loans, in the aggregate, to 150 percent of the published length of the student's current educational program. Once the student reaches that limit, he or she may borrow only unsubsidized loans, and interest begins to accrue on the student's outstanding subsidized loan.
You may review information about managing your federal student loans, completing your Master Promissory Note, information about entrance and exit counseling, consolidation, and repayment options at the Federal Student Aid website.
In order to apply for loans, you must have received your financial aid award notification from Normandale Community College for the appropriate term. Your award notification indicates your eligibility for federal student loans.
You may access your award notification at e-Services.
For information specific to loans at Normandale or if f you have questions concerning your rights and responsibilities of being a Federal Direct loan borrower, the terms and conditions of your loan or the loan application process, please contact the Student Services by email or phone 952-358-8100.
The total amount borrowed will be split equally and disbursed in TWO separate payments, half disbursed fall term and half disbursed spring term.
If you are borrowing a loan for only one term the total amount borrowed will be disbursed at the beginning of that term.
Federal Direct Loans can be either "subsidized," a need-based loan that the government pays the interest while you're in school and during eligible periods of deferment, or "unsubsidized," a non-need-based loan that you pay all the interest (although you can have the interest payments deferred).
The interest rate for a Subsidized or Unsubsidized Direct Loan is 2.75% on loans first disbursed on/after July 1, 2020.
For additional information regarding the Federal Direct Loan Program (DL) go to FSA's Direct Loans.
In order to apply for loans, you must have received your financial aid award notification from Normandale Community College for the appropriate term. Once you have received your award notification, you must complete Loan Entrance Counseling, a Master Promissory Note and Request your Direct Loan dollar amount through e-Services in order for us to disburse your loan funds.
PLUS Loans enable you, the parents, to borrow to help pay the education expenses of your dependent student who is enrolled for at least six credits. Your son or daughter must have completed the FAFSA and received a current award letter from Normandale if you are considering applying for a PLUS loan. The yearly limit on a PLUS Loan is equal to the cost of attendance minus any other financial aid your student has received.
To be eligible to receive a PLUS Loan you, the parent, will be required to pass a credit check. You can't be turned down for having no credit history — only for having an adverse one. If you don't pass the credit check, you may still be able to receive a loan if someone, such as a relative or friend who is able to pass the credit check, agrees to endorse the loan. An endorser promises to repay the loan if you fail to do so.
You may also qualify for a loan without passing the credit check if you can demonstrate that extenuating circumstances exist. You and your student must also meet other general eligibility requirements for federal student financial aid.
The interest rate is fixed at 5.30%. The first payment of the loan is due within 60 days after the final loan disbursement for the period of enrollment for which you borrowed. There is no grace period for these loans. Interest begins to accumulate at the time the first disbursement is made, and you will begin repaying both the principal and interest while your student is in school.
Effective July 1, 2008, you can choose to defer payments until six months after the date your student ceases to be enrolled at least half time. Accruing interest can be paid monthly or quarterly or be capitalized quarterly.
Loan funds are sent to Normandale. Loan funds will first pay any outstanding charges owed to Normandale for your student. If any loan funds remain, they will be disbursed to your student unless you notified us otherwise. Any remaining loan money must be used for educational expenses.
We encourage all students to begin the financial aid application process by completing the Free Application for Federal Student Aid (FAFSA).
If you require more financial assistance than appears on your award letter, you may apply for additional student loans from private education loan programs. These loans may have higher interest rates than federal loans and generally should be considered as a borrowing option after you have applied for your federal loans.
Normandale Community College will not recommend, and will not refer students to any specific private student loan program. Normandale Community College has certified private education loans in the past three years for the lenders available at the Fast Choice Lender List.
Please contact the lender for information regarding terms and conditions or to apply for a loan.
Under the Truth-In-Lending Act rules, private education loans are subject to self-certification, three consumer disclosures at specific times in the application process, and a three day delay in disbursement.
Due to the number of steps involved in the private loan application process, applicants should allow a minimum of three weeks for processing.
Neither Normandale Community College nor its employees receive benefits or remuneration as a result of your choice of lender. See our Student Loan Code of Conduct for additional information.
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 our web page. For general questions, please contact Student Loan Advocate Jabra Kawas at jabra.kawas@state.mn.us or 651-539-1022.
$31,000 - total of all Federal Subsidized and Unsubsidized loans (Direct and FFELP). However, no more than $23,000 can be Subsidized (Direct and FFELP).
$57,500 - total of all Federal Subsidized and Unsubsidized loans (Direct and FFELP). However, no more than $23,000 can be Subsidized (Direct and FFELP).
Grade 1: $3,500
Grade 2: $4,500
Grade 1: $5,500*
Grade 2: $6,500*
Grade 1: $9,500*
Grade 2: $10,500*
* Less total Subsidized loan for same enrollment period
During the in-school period, principal payments of Subsidized Federal Direct Loans can be deferred; government pays all interest.
Unsubsidized Federal Direct Loan can be deferred while in-school, but interest accrues to the borrower and must either be paid or capitalized (added to principal balance of loan).
Borrowers have a six-month period before the first payment must be made on a Subsidized or Unsubsidized Federal Direct Loan. The grace period begins the day after the borrower ceases to be enrolled half-time.
A servicer is the agency that services your loan account when you enter repayment. You communicate with the servicer, not your lender, when you have questions on your loan status, amounts owed, or changes in your enrollment status or address.
Visit My Federal Student Aid to view information about all of the federal student loans you have received and to find contact information for the loan servicer or lender of your loans.
You have a choice of repayment plans and the monthly payment will depend on the size of your debt and the length of your repayment period. FSA's Direct Loan Payment plans explains available repayment options as well as provides a loan repayment calculator. If you experience bankruptcy, your Federal Direct loan will not automatically be discharged.
View your Federal Student Loan History1st Floor, College Services
Hours: M-W 8 am - 5 pm; Th 10 am to 5 pm; F 8 am to 4:30 pm Closed weekends and holidays
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