Financial Aid

    Many of NCAD’s students receive financial assistance from one source or another. To see if you qualify for financial aid, you must complete the Free Application for Federal Student Aid (FAFSA). Complete your FAFSA at: FAFSA.ed.gov. It is the responsibility of the student to complete all forms correctly and in a timely manner. Information will be sent upon the student’s acceptance. Allow at least two months for financial aid to be processed. Errors, omissions and corrections will cause delays.

    For more information about our graduation rates, the median debt of students who completed the program, and other important information, visit www.ncad.edu.

    The NCAD Federal school code is — 026021.

    Please call (253) 272-1126 or e-mail financial aid at Financial Aid for assistance or additional information.

     

    Start-up Costs

    Most Financial Aid is not received at the school until after school is in session. Students should allow for initial “start -up” costs and have their own funds to register and pay for books, supplies and relocation.

     

    Eligibility Requirements For Financial Aid

    1. You must be a U.S. citizen or an eligible non- citizen.
    2. You must be registered with the Selective Service if you are male and between 18 to 25 years of age.
    3. You must maintain satisfactory progress as defined by NCAD.
    4. Sign statements on the FAFSA stating that:
      • The federal student aid you receive will be used solely for education purposes
      • You are not in default on a federal student loan and do not owe money on a federal student grant.
    5. You must be enrolled or accepted for enrollment as a regular student in an eligible degree or certificate program.
    6. You must be enrolled at least half-time to be eligible for Direct Loan Program Funds.
    7. You must show that you’re qualified to obtain a college or career school education by: -Having a high school diploma or a recognized equivalent such as a GED certificate.
      • -Completing a high school education in a homeschool setting approved under state law.

    (While income is taken into consideration, it does not automatically prevent you from getting federal student aid.)

    Visit: ww.studentaid.ed.gov/eligibility/basic-criteria

    Grant Programs

    Federal Pell Grant

    The student may apply for a Federal Pell Grant by completing the FAFSA. This grant program is designed to assist needy students who desire to continue their education beyond high school. Eligibility is determined by the student’s need, the cost of education and the amount of money appropriated by Congress to fund the program. Federal Pell Grants are grants and do not carry repayment provisions like loan programs.

    Federal Work Study

    NCAD does not currently participate in Federal Work Study.

    State Grants

    The Washington Student Achievement Council administers state aid programs for resident students. Students must have completed the FAFSA. Family income and assets are a factor for eligibility.

    The student must have a family income below a specified income cutoff. The cutoff equals a percentage of the state’s median family income (MFI) and adjusts with the student’s family size. The Washington State Need Grant and other state aid programs are available to students who qualify. NCAD does not currently participate in State Work Study. For more information on State grants log onto: www.wsac.wa.gov.

    Loan Programs

    Federal Direct Subsidized Stafford Loan

    The Subsidized Stafford Loan is a need-based loan. The federal government subsidizes the interest while you are in school. If you are eligible, you can borrow up to your full need but not more than $3,500 for the first academic year, $4,500 for the second academic year, and $5,500 for the third and fourth academic years. Repayment is deferred until six months after graduation, withdrawal, or dismissal from school.

    Federal Direct Unsubsidized Stafford Loan

    The Federal Unsubsidized Stafford Loan provides up to $6,000 for 1st and 2nd year students and $7,000 for 3rd and 4th year students who do not qualify for all or part of the funds available under the Federal Subsidized Stafford Loan Program. Funds from this loan program may be borrowed in addition to the funds available through the Federal Subsidized Stafford Loan.You may defer payments on this loan until six months after you graduate, withdraw, or are dismissed from the school. You are responsible for the interest accruing on an unsubsidized loan.

    Federal Direct PLUS Loan

    The Federal Parent Loan for Undergraduate Students (PLUS) provides loans up to the cost of attendance less other financial aid to qualifying parents of undergraduate students. Repayment typically starts sixty days after the loan is fully disbursed but can be deferred until six months after graduation, withdrawal, or dismissal from school. The Federal Parent Loan for Undergraduate Students (PLUS) is an option for parents of students who may not qualify for other forms of aid, or to provide additional funding for those who need other assistance.

    NOTE: You do not need to complete the FAFSA if the following apply:

    • You do not want to see if you qualify for need-based aid (i.e. Pell grant, State grants).
    • You do not want to apply for low-interest federal education loans (i.e. Stafford, FPLUS).
    • You intend to apply only for private (non-federal) education loans.
    • You intend to make only tuition cash payments.

    Private Loan Programs

    Private loans are available through Sallie Mae. These are flexible loan programs, which can either supplement federal programs or be used as a sole means of financing college costs. Loan limits are greater than those available for the Federal Direct Loan Program. Private loan borrowers can defer repayment while in school at least half time. Normally, repayment begins six months after the student graduates, leaves school, or drops to less than half time. Students are usually required to have a creditworthy co-applicant..

    NOTE: You may apply online at salliemae.com, or you may apply by phone.

    Lender List Policy

    Northwest College of Art & Design (NCAD) is not affiliated with any lenders. NCAD does not have preferential arrangements or consortium agreements with lenders.

    Higher Education Tax Benefits

    Tax Credits

    For the latest information check with your tax consultant or the IRS to see which specific tax credits and benefits may apply to you. Families that pay college expenses should consider if they qualify for higher education tax credits and deductions when they file their federal income tax returns.

    The Lifetime Learning Credit

    The Lifetime Learning Credit can be claimed for higher education expenses incurred by the taxpayer, the taxpayer’s spouse, or a dependent. The Lifetime Learning Credit is usable for any year of school, for an unlimited number of years, and lets taxpayers claim up to $2,000.To learn more about The Lifetime Learning Credit and to see if you qualify, please visit www.irs.gov/Individuals/LL

    IRA Withdrawal

    The tax laws allow people under the age of 59 1/2 to withdraw money for higher education expenses from a regular IRA or Roth IRA without paying a penalty.

    To learn more about the Education Exception to Additional Tax on Early IRA Distributions, please visit www.irs.gov/publications/p970/ ch09.html

    Limitations Per Calendar Year

    An individual student can benefit from only one of these tax benefits during a calendar year. If taxpayers have more than one family member in college, they may use different tax benefits for different family members.

    Deductions

    Student Loan Interest Deduction

    Students may deduct interest on all loans made for qualified higher education expenses. In addition to Federal Stafford and Plus Loans, loans made by state or local governments, and loans specifically for education expenses qualify for interest deductions. Interest on a student loan can be deducted for the life of the loan. Individuals with income of $75,000 or less ($155,000 if filing jointly) can deduct up to $2,500 in interest payments for qualified student loans. This deduction is available even if an individual does not itemize deductions. Like most other IRS programs, additional restrictions apply. See your tax advisor for further guidance.

    To learn more about the Student Loan Interest Deduction and to see if you qualify, please visit www.irs.gov/publications/p970/ch04.html.
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    Tuition Deductions

    Tuition and fees paid during the year can be deducted up to $4,000 for the taxpayer, the taxpayer’s spouse or dependents who attend an eligible institution of higher education. This deduction can be claimed in place of the Lifetime Learning credit, and is especially useful for taxpayers whose adjusted gross income disqualifies them from using the credit. Only tuition and fees qualify. Room and board are not included in this deduction. Student activity fees and fees for text books, supplies and equiptment may be included if you are required to pay those fees in order to attend the institution.

    Savings Methods

    State Sponsored 529 Plans

    529 plans allow taxpayers to either prepay or contribute to an account for paying a student’s qualified higher education expenses. 529 plan distributions are tax-free as long as they are used to pay qualified higher education expenses including tuition, required fees, books and supplies. For someone who is at least a half-time student, room and board also qualify.

    Coverdell Education Savings Accounts

    The contribution limit to these savings accounts is $2,000 per child, per year. The interest earned is invested tax free until distribution. When you withdraw the money, you aren’t taxed as long as you use the funds for qualified college expenses. Higher education tuition, fees, and room and board are generally considered valid expenses.

    The IRS Web site

    The Internal Revenue Service’s website provides detailed information about tax laws. The above information is not viewed as tax advice or counsel, but is intended to inform you of possible options that should be discussed with your tax advisor before you make any decisions. Go to the IRS web site at irs.gov to obtain the latest information on tax benefits.