Student loans, unlike grants and work study, are borrowed money that must be repaid with interest. Before you take out a student loan consider carefully the amount that you will have to repay in the years after graduation. Financial aid recipients are eligible for either a Direct Subsidized Loan, a Direct Unsubsidized Loan, or a combination of both loans. Students must be enrolled in a minimum of six credits to qualify.

Federal Direct Student Loans

Students must complete entrance counseling and a master promissory note before loans can be disbursed. Exit counseling is required when a student graduates or is enrolled in less than six credits during the school year. Nicolet College will process all Federal Student and Parent Loans for Undergraduate Students (PLUS) through the William D. Ford Direct Loan (DL) Program. Information on student loans can be found at

Federal Direct Subsidized Loans

These loans are offered to undergraduate students on the basis of financial need. While attending school, the government pays the interest that accrues on these loans. Payments can be made at any time before repayment begins. Repayment of principal and interest begins approximately six months after:

• graduation 25
• attendance goes below half-time status
• withdrawn from program

Certain types of enrollment may cause students to become responsible for the interest that accrues on Direct Subsidized Loans when the US Department of Education usually would have paid it.

Federal Direct Unsubsidized Loans

These loans are offered to undergraduate and graduate students regardless of financial need. The student is responsible for paying all interest of any Unsubsidized Loan from the date of disbursement until the loan(s) is paid in full. If the student chooses not to pay interest while attending school, the interest will accrue and be capitalized. Repayment of principal and interest begins approximately six months after:

• graduation
• attendance goes below half-time status
• withdrawn from program

Loan Limits and Interest Rates

A student's award is based on eligibility, and additional steps may be required in order to receive the maximum amounts. The combination of subsidized and unsubsidized loans cannot exceed the federal direct loans limits. Information on student loans: National Student Loan Data System:

Loan Borrowing Requirements

If a student is a new loan recipient at Nicolet College and awarded a Federal Direct Loan, the student is required to complete: Loan Entrance Counseling and a Master Promissory Note.

Loan Entrance Counseling
The purpose of the Loan Entrance Counseling session is to inform students of their rights and obligation as Direct Loan borrowers. Nicolet College will be notified when the Loan Entrance Counseling requirement has been met.

Master Promissory Note (MPN)
The MPN is a legally-binding contract between the US Department of Education and the borrower. The promissory note contains the terms and conditions of the loan, including how and when the loan must be repaid.

Loan Exit Counseling
It is a requirement that any student who receives a loan(s) must complete a Loan Exit Counseling when graduating or if there are certain changes of status during the school year. Examples of a change of status would be withdrawing from school, falling below half-time status, not meeting satisfactory academic progress (SAP), or transferring to a different college.

Parent Plus Loans

Parent Loans for Undergraduate Students (PLUS) are education loans for parents of undergraduate dependent students (students are required to provide parent information on the FAFSA application). PLUS loans are available to parents regardless of income or assets, but a credit check is performed. Parents may borrow up to the Cost of Attendance, minus the Expected Family Contribution (EFC) derived from the FAFSA, minus any other financial aid, scholarships and other assistance the student has already received. The PLUS Loan goes into repayment 60 days after it is fully disbursed for the year and is the financial responsibility of the parents, not the student. If the student agrees to make payments on the PLUS Loan, but fails to make the payments on time, the parent will be held responsible. 26

Wisconsin Nursing Student Loan

Program Nursing Student Loans are available to Wisconsin resident students enrolled at least half-time in either the Associate Degree Nursing or Practical Nursing Technical Diploma programs. Students who participate in this program must agree to be employed as a licensed nurse in Wisconsin. For each of the first two years that a student works as a nurse or nurse educator and meets the eligibility criteria, 25% of the loan is forgiven.

Alternative Loans

Alternative or ‘private ’student loans can be an important funding source for students who need more loan funds than the federal programs can supply or who are ineligible for federal student loans. Alternative loan programs have various interest rates and terms of repayment. Alternative loans are not federally guaranteed and can take several weeks to process. All alternative loan programs require a credit check on either the borrower, co-signer, or both. Before applying for an Alternative Loan, we suggest meeting with a Nicolet College Financial Aid Office staff member to assess eligibility and to obtain more specific information regarding the application process.


The National Student Loan Data System (NSLDS) compiles all data involving federal student loans for undergraduate and graduate students. Because the NSLDS is keeping the personal, financial, and loan information of every student, the question of who can retrieve a student’s information might be a privacy issue that you are worried about. Below are questions and answers regarding privacy and security matters of student loan information.

What data is found in the NSLDS?
The data that can be retrieved in the NSLDS are the student's full name; Social Security number; date of birth; address; gender; citizenship; family income; school enrollment and status; course of study; and types of student loans obtained, including the amount and the status of the loan.

Who can obtain student information in the NSLDS?
The following private and government agencies as well as entities with the kinds of disclosure notices indicated may gather information from the NSLDS about a student account:

• Agencies under the federal and state governments
• Accredited consumer reporting agencies (Experian, Equifax, and Trans Union)
• Labor organization disclosure
• Administrative disclosures
• Contract disclosure
• Enforcement disclosure
• Department of Justice disclosure
• Congressional member disclosure
• Freedom of Information Act advice disclosure
• Employee grievance, complaint, or conduct disclosure
• Litigation and alternative dispute resolution disclosure
• Parties, counsel, representatives, and witnesses

When can student loan information be shared with the above-mentioned agencies or in response to the listed kinds of disclosures?
Private or government groups will be given the right to collect student loan information only when the purpose of the request adheres to the provisions stated in the Privacy Act. Any purpose for gathering the information that does not comply with the law is not allowed by the Department of Education.