When a lender accrues interest before the borrower starts repayment, then adds that amount to the principal. This is sometimes called "compounding." Capitalizing interest increases the total to be repaid and the size of the minimum monthly payment. Students can avoid capitalizing interest by paying interest as it accrues. Lenders may capitalize no more often than quarterly; the more frequently interest is capitalized, the more quickly it increases.
Students must be one of the following to receive federal financial aid: U.S. citizen; U.S. national (includes natives of American Samoa or Swain's Island); U.S. permanent resident who has an I-151, I-551 or I-551C (Alien Registration Receipt Card).
A signer other than the borrower who agrees to assume responsibility for repayment in the event that the borrower fails to repay. Private/Alternative lenders may require co-signers, but federal student loans do not.
Combining two or more loans into one new loan that has a longer repayment term and a single monthly payment that is smaller than the sum of previous monthly payments. By consolidating eligible federal student loans and extending the repayment term (up to 30 years, depending on the total loan amount), repayment can be easier. Note that while this may ease the borrower's cash flow, consolidation can add significantly to the amount of interest that is paid over time.
A consortium agreement is an agreement between two institutions for the financial benefit of a student who is simultaneously enrolled at both institutions. This agreement allows a student to receive Title IV funding from Northwest College for all of the eligible courses for which the student is enrolled. The student must be eligible for financial aid and be a degree-seeking student at NWC to be eligible for this consortium agreement.
Cost of Attendance (COA)
Cost of Attendance (COA) is based on government guidelines and average costs. A COA for Pell Grant includes allowance for tuition and fees, room and board, books and supplies. COA for Campus-Based funds (FSEOG, FWS, & Federal Loans) include the above plus transportation and personal expenses. COA can only include costs of attendance for the student. Additional living allowances for married students or additional family members are not included in student budgets.