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.</p.

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</4>

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.

Code of Conduct for Education Loans:

The Higher Education Opportunity Act of 2008 (HEOA) requires that institutions participating in the federal student loan programs develop, publish and enforce a code of conduct with respect to student’s loans.
NCAD is committed to the highest standard of ethics and conduct and therefore, the Office of Financial Aid is bound by the institution’s Code of Conduct and Ethics for Business Activities, which requires each individual to comply with legal and regulatory requirements, policies and procedures that apply to his or her particular duties. Additionally, to comply with the HEOA, NCAD has adopted the following Code of Conduct which applies to the officers, employees and agents of NCAD.

The institution and its employees are banned from any revenue sharing arrangements with lenders.
No employees of financial aid offices and those employees who have responsibilities with respect to education loans shall solicit or accept any gift from a lender, guarantor, or servicer of education loans.

Gifts are defined as any gratuity, favor, discount, entertainment, hospitality, loan or other item having a monetary value of more than a de minimus amount, consistent with NCAD’s Conflict of Interest and Commitment Policy, and includes a gift of services, transportation, lodging, or meals, whether in kind, by purchase of a ticket, payment in advance or reimbursement. Gifts do not include: standard material activities or programs related to a loan, default aversion/prevention, or financial literacy (e.g. workshops, training); food, refreshments, training or informational material furnished to an employee of an institution as an integral part of a training session designed to improve the service of a lender, guarantor or servicer of educational loans to the institution, if the training contributes to the professional development of the employee; loan benefits to a student employee if they are comparable to those provided to all students at the institution; entrance and exit counseling services provided to borrowers to meet the requirements of the HEA provided that the institution retains control of the counseling and the counseling is not used to promote the lenders products; philanthropic contributions to the institution by the lender.

Employees of the University’s financial aid offices and those employees who have responsibilities with respect to education loans shall not accept from a lender or affiliate or any lender any fee, payment, or other financial benefit as compensation for any type of consulting arrangement or other contract to provide services to a lender or on behalf of a lender relating to education loans.

NCAD will not for any first-time borrower, assign through award packaging or other methods, a borrower’s private loans to a particular lender; or refuse to certify, or delay certification of, any loans based on the borrower’s selection of a particular lender or guaranty agency.

NCAD shall not request or accept from any lender any offer of funds for private loans, including funds for an opportunity pool loan, to students in exchange for providing concessions or promises to the lender for a specific number of federal loans made, insured, or guaranteed, a specified loan volume, or a preferred lender arrangement.
NCAD shall not request or accept from any lender any assistance with call center staffing or financial aid office staffing (there are exceptions such as professional development training, providing counseling materials-debt management materials, etc. provided that the lender is disclosed on the materials; short term nonrecurring assistance during emergencies).

Employees of NCAD’s financial aid office and those employees who have responsibilities with respect to education loans and who serve on an advisory board, commission, or group established by a lender, guarantor, or group of lenders of guarantors, shall be prohibited from receiving anything of value from the lender, guarantor, or group of lender or guarantors, except that the employee may be reimbursed from reasonable expenses incurred in serving on such advisory board, commission, or group.