Federal Student AiD
NWSWB is approved for Federal Student Aid (FSA), which encompasses Direct Student Loans and Pell Grants. To apply for Federal Student Aid, students must fill out the online FAFSA (Free Application for Federal Student Aid) form.
Completing the FAFSA is the first step to applying for financial aid. The information you provide determines whether you are eligible for federal financial aid, and the amount you are qualified to receive. Remember, the FAFSA is free — do not pay to submit your application.
New federal legislation has resulted in changes to the Free Application for Federal Student Aid (FAFSA) that will go into effect for the 2024-2025 aid year. As a result of these changes, the 2024-2025 FAFSA will become available in December 2023. NWSWB does not impose a deadline for completing the FASFA but it is highly recommended that students apply for financial aid concurrent with enrollment.
Steps for Applying for Federal Financial Aid
You’ll need to create your account to manage the student loan journey. You can create your account at: studentaid.gov/fsa-id/create-account
To apply for financial aid, you must complete the FAFSA (Free Application for Federal Student Aid) each academic year at www.studentaid.gov.
You can complete the FAFSA online and sign it electronically with your FSA ID. Your FAFSA application is used to apply for the Federal Pell Grant, FSEOG, and Federal Direct Loans. You will need to submit the school code for each school you are interested in.
The Northwest School of Wooden Boatbuilding’s school code is 041550.
Once you’ve completed the FAFSA application, you’ll receive a Student Aid Report (SAR) via email. You can also access your SAR by logging back into your FAFSA account. Review your SAR carefully and take the appropriate steps if required.
Tip: Your SAR determines your Estimated Family Contribution (EFC) which is important for determining the amount of federal financial aid you may qualify for. Your EFC will be used in Step 4.
After completing your FAFSA form, send your Student Aid Report (SAR) to the school’s Financial Aid Adminstrator, Katie Whalen, at [email protected]. Your SAR will be reviewed and you will be emailed an estimate of the Federal Student Aid you may qualify for.
After receiving the estimate of your financial aid award, confirm with the Financial Aid Coordinator ([email protected]) that you would like to proceed to the next steps. This notifies the school that you would like to receive an official ‘Financial Aid Award Letter’. This is the method through which you can accept the aid that has been offered to you.
REQUIREMENT #1:
Student Loan Entrance Counseling
Entrance counseling ensures you understand the terms and conditions of your loan and your rights and responsibilities. You’ll learn what a loan is, how interest works, your options for repayment, and how to avoid delinquency and default. When you’re finished, a record of your completion will be sent to the schools you selected, and you can then receive your loan money. Keep in mind that you cannot save and leave an incomplete session; you must complete entrance counseling in one sitting.
REQUIREMENT #2:
Master Promissory Note (MPN)
The Master Promissory Note (MPN) is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the U.S. Department of Education. It also explains the terms and conditions of your loan(s).
Understanding Available Federal Aid Options
Your FAFSA application is used to apply for the Federal Pell Grant, FSEOG, and Federal Direct Loans. You may qualify for all available options, just one, or none based on federal aid eligibility factors. There are three basic types of financial aid: grants, loans, and scholarships. Grants and scholarships are considered “gift aid” and are not generally required to be repaid and loans are funds that must be repaid with interest.
Direct Subsidized Loan:
Enrolled students with financial need may be eligible to receive a Direct Subsidized loan. No interest accrues while the borrower is enrolled, during the grace period, or during a deferment. A six month grace period begins when the student is no longer enrolled at least half-time or graduates. Loan repayment begins at the end of the six months.
Direct Unsubsidized Loan:
Enrolled students may be eligible to receive a Direct Unsubsidized loan. Interest begins accruing while the student is in school; choosing to repay interest while attending school results in savings to the student. A six month grace period begins when the student is no longer enrolled. Loan repayment begins at the end of the six months.
Federal Pell Grants usually are awarded only to students who display exceptional financial need as determined by their Estimated Family Contribution (EFC) and have not earned a bachelor’s, graduate, or professional degree.
A Federal Pell Grant, unlike a loan, does not have to be repaid, except under certain circumstances.
Information provided on the FAFSA form determines your eligibility for a Pell Grant, and if so, how much you’re eligible to receive.
Note: If you have received a Bachelors Degree or higher, you are not eligible to receive a Pell Grant.
This grant is available to qualifying undergraduate students pursuing their first degree who demonstrate significant financial need as determined by Estimated Family Contribution (EFC).
Note: If you have received a Bachelors Degree or higher, you are not eligible to receive a FSEOG Grant.
Understanding Federal Aid Eligibility Factors
Your eligibility for grants and loans depends on factors such as your age, highest level of education, past federal aid borrowing history, and estimated family contribution (EFC).
Your dependency status determines whose information you must report when you fill out the Free Application for Federal Student Aid (FAFSA) form.
Your answers to questions on the FAFSA form determine whether you are considered a dependent or independent student. In most cases for individuals applying for federal aid for our programs, a dependent student is considered as an individual that is under 24 years of age and is not married. An independent student is considered as an individual who is 24 years of age or older. Learn more about Dependency Status >>
- There are limits to the amount a student may borrow through Federal Student Aid for each program. For the 12-month AOS Degree program, the maximum Federal Student loan available to students is $13,000 for Independent students and $7,650 for Dependent students. For the 9-month Marine Systems Diploma program, the maximum Federal Student loan available is $9,500 for Independent students and $5,500 for Dependent students.
If you’re an independent student, you will report your own information (and, if you’re married, your spouse’s).
- There are limits to the amount a student may borrow through Federal Student Aid for each program. For the 12-month AOS Degree program, the maximum Federal Student loan available to students is $13,000 for Independent students and $7,650 for Dependent students. For the 9-month Marine Systems Diploma program, the maximum Federal Student loan available is $9,500 for Independent students and $5,500 for Dependent students.
Federal Pell Grants usually are awarded only to students who display exceptional financial need and have not earned a bachelor’s, graduate, or professional degree.
A Federal Pell Grant, unlike a loan, does not have to be repaid, except under certain circumstances.
Schools use the information on the FAFSA form to determine your eligibility for a Pell Grant, and if so, how much you’re eligible to receive.
