Federal Student Loans
Student loans, unlike grants and work-study, are borrowed money that must be repaid, with interest. You cannot have these loans canceled because you didn’t get a job in your field of study or due to financial difficulty. Loans are legal obligations, so before you take out a student loan, think about the amount you’ll have to repay over the years. A repayment estimator may help you to plan for your loan repayment.
Financial need is not a requirement to obtain certain student loans. However, if you demonstrate financial need and are eligible for a Subsidized Loan, the federal government (U.S. Department of Education) will pay the interest that accrues on this type of loan during certain periods of enrollment.
All loans will be reported to NSLDS and are accessible by all authorized agencies, lenders, and institutions.
How to Accept
1st time Loan Borrowers
Accepting your loans is a three part process!
- Complete Loan Entrance Counseling at studentloans.gov.
- Complete the Master Promissory Note (MPN) at studentloans.gov.
- Accept/Reject your loans on Web Advisor.
Repeat Loan Borrowers
- Accept/Reject your loans on on WebAdvisor.
- Previous Direct Loan recipients who have not had a loan at Navarro College must complete Loan Entrance Counseling at studentloans.gov.
To reduce the amount of any of your loan(s), cancel Grants or scholarships, or reinstate loans you previously rejected: Complete the Change Request Form PDF, and return it to the Financial Aid Office.
First Time Borrowers and New Students
If you’re a first-time borrower, your first disbursement cannot take place until 30 days after the first day of your enrollment period begins (see loan refund dates).
Please Note: First-time borrowers will not receive the loans in time to pay for tuition or books. A student who does not have enough grant or scholarship money to cover tuition will need to make alternative payment arrangements or they will be dropped for non-payment.
Navarro College “packages” Direct Loans for students who have submitted a Free Application for Federal Student Aid (FAFSA) for the fall and spring semesters. Awards are based on first year (students with less than 30 hours completed) status. If you have more than 30 hours completed, you may contact us regarding your eligibility to be awarded based on second year status.
Direct Loan Eligibility Requirements
- Must complete the FAFSA.
- Must meet satisfactory academic progress as determined by the Financial Aid Office.
- Must be enrolled at least half-time (six hours) each semester. You must be pre-registered at the time your disbursement arrives at the college in order for the funds to post to your account in the Business Office. Registering after the scheduled disbursement date may delay the release of your balance check.
- Must be a citizen or eligible non-citizen.
- Must not be in default on any federal loan or owe a refund back to any federal program (nor your parent when applying for a PLUS loan.)
Maximum Eligibility Amounts
First Year (less than 30 completed hours)
Dependent Undergraduate Student = $5,500 (No more than $3,500 of this amount may be in subsidized loans) Independent Undergraduate Student = $9,500 (No more than $3,500 of this amount may be in subsidized loans)
Second Year (more than 30 completed hours in a two-year program)
Dependent Undergraduate Student = $6,500 (No more than $4,500 of this amount may be in subsidized loans) Independent Undergraduate Student = $10,500 (No more than $4,500 of this amount may be in subsidized loans)
Note: Dependent students whose parents are denied a PLUS loan are eligible for up to an additional $4,000 after proof has been received.
Direct Loan Counseling
Federal regulations require that all students who receive a Direct Loan (DL) must complete Entrance Counseling at studentloans.gov. Federal regulations also require that all students who receive a Direct Loan (DL) must complete Exit Counseling at studentloans.gov prior to graduation or dropping below half-time attendance. You may not be able to get a copy of your college transcript until you have completed this important step.
Viewing Financial Aid History
Students can view their financial aid history via the studentloans.gov website. To view your information click on “My Financial Aid History” under “Tools and Resources”, then “Financial Aid Review”. Student’s will need their FAFSA Pin number to be able to view the information.
Loan 150% Rule
If you are a first-time borrower on or after July 1, 2013 there is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized Loans. The maximum period is 150% of the published length of your current program. Any student that does not graduate with 150% of the program length and continues to enroll will be responsible for the interest that accrues on their Direct Subsidized Loan from that point forward.
Spring Loans and Withdrawal from Navarro College
If you withdrew from Navarro College in the fall semester and are returning for the spring semester, or if the spring semester is your first at Navarro College, you must request student loans. If you wish to request loans for the spring semester, please fill out the Change Request Form. Please be aware that the new spring loans will be disbursed in two disbursements, one at the beginning of the semester and one at the half-way point (see our Refunds Page for specific dates). They may not be the same amount as the original amounts you were awarded.
Eligibility for a summer loan depends on your grade level, degree plan, and amount of loans you have already borrowed for the academic year. To qualify for summer student loans you must have unused funds remaining from the school year and must be registered for at least 6 hours. After registering for classes, submit the Change Request Form to the financial aid office. If your enrollment status changes before or during the semester, you must notify the financial aid office so that your award can be adjusted.
A parent of a dependent undergraduate student who is enrolled at least half-time (six credits) may be able to borrow a Parent PLUS Loan (Parent Loan for Undergraduate Students) through the DL (Direct Loan) program to help pay for educational expenses while attending Navarro College. The Parent PLUS Loan is based on credit and usually requires a parent begin repayment 60 days after the last disbursement is received.
- Complete Direct PLUS Loan Request. (sign in using parental information)
- E-Sign the Parent PLUS Loan Master Promissory Note. (sign in using parental information)
A Parent PLUS Loan application will authorize a credit check by Navarro College. If the parent does not pass the credit check, she might still be able to receive a loan if someone credit-worthy, such as a friend, agrees to cosign the loan. A cosigner promises to repay the loan if the borrower fails to do so.
If the parent does not pass the credit-check, then the student may be eligible for up to an additional $4000 unsubsidized loan.
How much can a parent borrow?
The yearly limit on a Parent PLUS Loan is equal to the student’s cost of attendance minus any other financial aid he receives. If the student’s cost of attendance is $6,000, for example, and he receives $4,000 in other financial aid, his parent can borrow up to $2,000.
Who gets the Parent PLUS Loan money?
Once approved and awarded (e-signed MPN and credit check passed), the PLUS loan will be applied to the student’s Navarro College account, and if the student owes any money to the college, it will be taken out of the loan. Any credit balance leftover from the PLUS loan will be refunded according to the option chosen on the application.
What’s the interest rate?
Parent PLUS Loans are currently at a fixed rate of 6.41% for loans disbursed on or after July 1, 2013.
Student loans are generally released in multiple disbursements. You will receive one half each semester in which you are enrolled at least six hours and meet Navarro College satisfactory academic progress as determined by the Financial Aid Office.
Example: You were awarded $3,500 for the Fall/Spring term. You will receive $1,750 (minus what you owe the school) at the beginning of the Fall semester and $1,750 (less what you owe the school) at the beginning of the Spring Semester (see sample award letter and our disbursement schedule).
Please remember that the lender may retain an origination fee. Origination fees are charged by the federal government for processing the loan. The fee is deducted from the proceeds of your loan by your lender and paid to the federal government.
IMPORTANT!!! You must be registered as at least a half-time student at the time your loan disbursement arrives at the college in order for your funds to post to your account in the Business Office. Registering after your scheduled disbursement date may cause a delay in the release of your funds.
If you are a first-year undergraduate student and a first-time borrower, Navarro College cannot disburse your first payment until 30 days after the first day of your enrollment period. This practice ensures you won’t have a loan to repay if you don’t begin classes or if you withdraw during the first 30 days of classes. This 30 day “wait” period does not apply to your second disbursement.