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Student Loans

Colorado Northwestern Community College

Student Loan Information

 

Contact information

Jessica Wollman
Financial Aid Director
jessica.wollman@cncc.edu
970.824.1125

Federal Loans to Students

Unlike grants or work-study, a loan is money that must be repaid. You, the student borrower, are legally obligated to repay your loans so we encourage you to fully read and understand the terms and conditions before accepting a loan. Please note: You must repay your loans even if you do not complete your program. The minimum requirements for obtaining a federal loan are a completed FAFSA application, admission into a degree-seeking program, and at least half-time (6 credits) enrollment. At Colorado Northwestern Community College, we encourage students to make informed decisions when taking out a student loan. Only borrow the amount of funds that you need to successfully complete your education. The maximum amount a first-year student (29 credits and below) can borrow is $5,500; no more than $3,500 of this amount may be in subsidized loans. The maximum amount a second-year student (30 credits and higher) can borrow is $6,500; no more than $4,500 of this amount may be in subsidized loans.

What is a subsidized loan?

A Direct Subsidized Loan is a type of federal student loan that’s available to undergraduate students with financial need. If you accept a Direct Subsidized Loan, the U.S. Department of Education will pay the interest on your loan while you’re in school at least half time, during your six-month grace period after you leave school, and during a period of deferment.

What is an unsubsidized loan?

A Direct Unsubsidized Loan is a type of federal student loan that’s available to undergraduate, graduate, and professional students. Unlike a Direct Subsidized Loan, it’s not based on financial need. Interest accrues (adds up) on Direct Unsubsidized Loans during all periods, even when you’re in school.

For more information visit Financial Aid Dictionary: Top Terms Related to Grants, Work-Study, and Student Loans – Federal Student Aid

Federal Loans to Parents

If a dependent student needs additional funds to meet their estimated cost of attendance, parents can request a Parent Plus Loan to cover remaining educational expenses. Parents must contact the financial aid office to request a Plus Loan. Unlike grants or work-study, a loan is money that must be repaid. You, the parent, are legally obligated to repay your loans so we encourage parents to fully read and understand the terms and conditions before accepting a loan. Please note: You are responsible to repay your parent loans even if your student does not complete their program. Loan fees for Direct Plus Loans is 4.228%.

  • Beginning with the 2026-2027 school year, parents can no longer borrow up to the Cost of Attendance for the year.
  • Annual cap is $20,000 per dependent student per year.
  • Lifetime cap is $65,000 total per dependent student.

What are the interest rates for Federal Direct Student Loans?

The interest rate for a Federal Direct subsidized loan is 6.52% with a first disbursement date between July 1, 2026, and June 30, 2027, the interest rate for a Federal Direct unsubsidized loan is 6.52%, and the interest rate for the Federal Plus (parent loan) loan 9.07%. These rates are fixed, meaning the rate will not change for the life of the loan.

** Students must fill out a FAFSA at studentaid.gov/h/apply-for-aid/fafsa to be able to apply for a Federal Stafford Loan. **

To obtain your Stafford student loan follow these steps:

  1. Log into your “Crossroads” account at www.cncc.edu and accept your loans.
  2. Complete Loan Entrance Counseling at studentaid.gov. Select the “Grants and Loans” drop down to find loan entrance counseling under the “Get a Loan” section.
  3. Complete your Master Promissory Note at studentaid.gov. Select the “Grants and Loans” drop down to find master promissory note (MPN) under the “Get a Loan” section.

Once these steps have been completed, your loan will be certified by the financial aid office. Direct student loans pay out in two disbursements usually this is fall/spring, single semester loans are still paid out in two disbursements with the first half being paid out after the drop date of classes and the second approximately one month later. For first time borrowers the first disbursement is always 30 days after the first day of school.

Other important financial aid information

What about alternative/private loans?

(Alternative or Private loans are not administered through the Direct Loan program) Some programs, such as Aviation Technology, Aviation Maintenance and Dental Hygiene, have costs higher than the federal loan limits can cover. Other programs, such as refresher courses and short certificate programs (less than 15 weeks), may not be eligible for financial aid. An alternative loan may be the only option for meeting educational expenses.

*NOTE: Be sure to explore all sources of funding before applying for an alternative/private loan.

How do I get a private/alternative Loan?

It is against federal truth-in-lending laws for schools, or their representatives, to recommend specific lenders to students. 

The best way to find banks that provide private/alternative student loans is to do a web search and type in "alternative student loans". This will give you a list of potential funding sources. Once you pick a lender you need to make sure they will loan to you for attendance at Colorado Northwestern Community College. Note: not all banks loan to students attending a community college. Some lenders will require you to have a co-signer. The lender will do a credit check on both you and your co-signer so make sure you pick a credit worthy co-signer. Once your loan has been approved by the lender they will notify the financial aid office to certify the loan. The financial aid office will certify that you are enrolled and that you are eligible for a certain amount of money. Students cannot borrow more than their cost of attendance. Depending on the lender, and type of loan you choose, they may ask you for your cost of attendance.

You can contact the financial aid office at 970.824.1125 or by email to Jessica Wollman to obtain this information.

Review your loan history If you have forgotten who your lender is or how much you have borrowed; check out the NSLDS Student Access web site at www.nslds.ed.gov.  All Direct Loan and Parent Plus Loan information is submitted to NSLDS and accessible by authorized agencies, lenders and institutions.

Loan Disbursement

All loan funds will be sent to CNCC. Funds will not be mailed directly to your home. Loans are disbursed in two or more equal disbursements. Your first disbursement will be no earlier than the end of the drop/add period, with the second disbursement occurring midpoint through the loan period. Single semester loans are disbursed in two disbursements. Each loan disbursement will be assessed an origination fee, the origination fees are assessed by lenders to help offset the cost of processing the loan. The fee is 1.057% for loans disbursed between October 1, 2026, and September 30, 2027.

Starting with the 2026-2027 school year, Federal direct subsidized and unsubsidized loans will be subject to schedule of reduction. Loans will be reduced based on exact enrolled credit hours for the semester. Loans will not be disbursed if enrolled in less than half time (6 credit hours) enrollment. Loan eligibility is calculated each semester based on exact credit hours and will be calculated as a fraction of the maximum allowed loan amount.

Undergrad Enrollment Levels
Your loan amount relies directly on your enrollment status on the Term Census Date.

  • Full-Time: 12+ credits (100% of loan)
  • Three-Quarter Time: 9 to 11 credits (75% of loan)
  • Half-Time: 6 to 8 credits (50% of loan)
  • Less Than Half-Time: 1 to 5 credits (0% of loan)

The financial aid office will review your actual enrolled credits each semester before disbursing Direct Loans. Dropping or withdrawing courses mid-semester can cause a reduction in loan eligibility the following semester.

Once you are ready to graduate, or before transferring from CNCC, you must complete a Loan Exit Counseling Session. This session will focus on your rights and responsibilities as a student loan borrower, as well as repayment provisions. Exit loan counseling can be done by going to Exit Counseling | Federal Student Aid

Loan Repayment

Home | Federal Student Aid is the best resource for accurate and up to date information regarding federal student loans and parent plus loans. You are encouraged to review all available options and make decisions about borrowing and repayment that align with your individual needs and goals. When preparing for and entering repayment, Studentaid.gov offers a large variety of resources and tools such as:

*Official cohort default rates for institutions participating in federal student loan programs are public record and required to be released by the U.S Department of Education. These rates, measuring borrower defaults within three years of repayment, are published online for transparency. See the full CNCC Report by the National Center for Education Statistics.

Questions?

Do not hesitate to reach out to Jessica Wollman in the CNCC Financial Aid Department.

Contact information

Jessica Wollman
Financial Aid Director
jessica.wollman@cncc.edu
970.824.1125