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Financial Aid

Frequently Asked Questions (FAQ)

What is the difference between a subsidized Direct Loan and an unsubsidized Direct Loan?
No interest is charged on a subsidized Direct Loan while you are in school attending at least half-time. Interest does not begin to accumulate until after your 6-month grace period after you cease enrollment. An unsubsidized Direct Loan begins accruing interest immediately after you receive the funds.

What are the interest rates for Direct Loans?
The subsidized and unsubsidized Direct Loan interest rate for the 2023/2024 academic year is 5.50 percent. The Direct PLUS loan interest rate is 8.05 percent.

What is the maximum amount that I can borrow?

Dependent Student Independent Student

0-29 credits  

$3,500 subsidized

$5,500 total subsidized and unsubsidized combined

$3,500 subsidized

$9,500 total subsidized and unsubsidized combined

30-59 credits

$4,500 subsidized

$6,500 total subsidized and unsubsidized combined

$4,500 subsidized

$10,500 total subsidized and unsubsidized combined

Maximum Total

$23,000 subsidized

$31,000 total subsidized and unsubsidized combined

$23,000 subsidized

$57,500 total subsidized and unsubsidized combined


What is a Federal Perkins Loan?  (The Perkins Loan is no longer available.)

Do I need to do anything to accept my financial aid?
Your grant funds and other gift aid will automatically be applied to your account at Minnesota West. You will need to apply for any loans that you are eligible for. You can do that on your e Services Student Account.

What is a book voucher and how do I know if I qualify for one?
If you have submitted a valid FAFSA to Minnesota West, you are eligible to use a book voucher to purchase required textbooks. If your financial aid does not completely cover the cost of your books, you will be required to pay the balance owed. To use a book voucher please visit the online book site and at the payment processing screen, select payment type "Fin Aid/3rd pty/VA/PSEO/Nelnet".  You will need to know your 8 digit numerical ID. When making your purchase, if you are eligible, the system will allow the charge to be placed on your student account. For more information on Books, please go to the bookstore

When will I get my financial aid overage check/direct deposit?
If your financial aid paperwork is complete, your funds will be disbursed on the Financial Aid Overage Disbursement date found on the student calendar.

Please note:

  • All federal student loan requests are split into 2 disbursements (Fall and Spring) as we assume you will be attending both semesters.
  • Semester-only loans must be split into two disbursements. Half the loan amount will be disbursed starting the third week of classes. The other half will be disbursed mid-way through the semester.
  • First-time loan borrowers must wait 30 days after the start of the term before the first disbursement can apply to their student account.

How do I know if I qualify for work study? 
If you indicated on your FAFSA that you were interested in Work Study AND you qualify, your Award Letter will reflect the amount you are eligible to earn.  If you have any questions contact a Resource Specialist or the Communication Center.

Will my financial aid be affected if I withdraw from one or all of my classes?
You receive financial aid based on the number of credits that you are taking so any change in your credits may affect the amount of aid that you are eligible to receive. You may have to return funds that were previously disbursed to you. If you withdraw after 60% of the semester is over, you may not have to return your financial aid. Check with your Advisor to discuss your individual situation before you withdraw from any classes.

What is an overaward?
Federal and State regulations prohibit you from receiving financial assistance that exceeds your calculated financial need or the cost of attending Minnesota West. Therefore, if you receive additional assistance that we were not aware of when we processed your application, you may be overawarded and we may reduce, cancel or collect back some of your awards. 

No interest is charged on a subsidized Direct Loan while you are in school attending at least half-time. Interest does not begin to accumulate until after your 6-month grace period after you cease enrollment. An unsubsidized Direct Loan begins accruing interest immediately after you receive the funds.