FINANCIAL AID

Loan Programs & Information


Applying for Loans at UNCG

As of July 1, 2010, the U.S Department of Education became the sole lender for federal education loans.  UNCG awards and processes all Stafford and PLUS loans through the Direct Lending Program.

Before applying for a federal loan, a student must submit a Free Application for Federal Student Aid (FAFSA). Based on the student's FAFSA report, the Financial Aid Office will determine the maximum amounts and types of loans for which the student and his or her parents may apply.

Requests for loans must be submitted no later than three weeks prior to the end of the semester. Loan funds cannot be disbursed until all necessary requirements are met. If all requirements have not been completed, loan amounts will not be able to be used to defer UNCG bill charges. You must notify the Financial Aid Office in writing if any changes need to be made to your loans after they have been web accepted.


Federal Direct Student Loans

The Federal Direct Student Loan Program consists of subsidized and unsubsidized loans. Repayment of Federal Direct Student Loans may be deferred while a student is attending the university on a half time or full time basis.

The Federal Direct Subsidized Loan is awarded according to demonstrated financial need. Interest is paid by the federal government as long as a student is enrolled at least half time at the university. The student must begin repayment of the loan six months after leaving school or dropping below half time.

The Federal Direct Unsubsidized Loan is awarded regardless of a student's demonstrated need. Interest begins accruing from the date of disbursement. By making interest payments while in school, a student can avoid capitalization of the interest. When interest is capitalized, it is added to the principal amount of the loan upon which further interest charges are based.

Entrance Counseling and the completion of a Master Promissory Note is required for all students borrowing Federal Direct Loans for the first time.  Both the Entrance Counseling and the Master Promissory Note can be completed at www.studentloans.gov.

Entrance Counseling Instructions:
  1. Go to www.studentloans.gov
  2. Sign in using your information and federal PIN number
  3. Click on Complete Counseling
  4. Click on Entrance Counseling
  5. Under "Select Your Schools," select UNIVERSITY OF NORTH CAROLINA_GREE and then click "add school"
  6. Select Student Type
  7. Complete the Entrance Counseling Session

Master Promissory Note Instructions:

First time direct loan borrowers will need to complete the Master Promissory Note at www.studentloans.gov. Sign in using your information and federal PIN number and click on Complete Master Promissory Note. Then follow the step by step instructions for completing the Master Promissory Note found here.

 

Knowing the Limits

For loan periods beginning after July 1, 2009, Dependent undergraduate students who are enrolled as regular students in eligible programs may be able to borrow per year up to:

  • $5,500 as a freshman ($3,500 of which can be in subsidized loans)
  • $6,500 as a sophomore ($4,500 of which can be in subsidized loans)
  • $7,500 as a junior or senior ($5,500 of which can be in subsidized loans)

The maximum aggregate loan amount a dependent undergraduate student may borrow is $31,000 (no more than $23,000 of which can be in subsidized loans).

For loan periods beginning after July 1, 2009, Independent undergraduate students (and dependent students whose parents have been denied access to a Federal PLUS Loan) who are enrolled as regular students in eligible programs may borrow per year up to:

  • $9,500 as a freshman ($3,500 of which can be in subsidized loans)
  • $10,500 as a sophomore ($4,500 of which can be in subsidized loans)
  • $12,500 as junior/senior ($5,500 of which can be in subsidized loans)

The maximum aggregate loan amount an independent undergraduate student may borrow is $57,500 (no more than $23,000 of which can be in subsidized loans).

Graduate students are generally allowed to borrow up to $20,500 each academic year in unsubsidized loans. As of July 1, 2012, graduate and professional students are no longer eligible to receive Federal Direct Subsidized Loans.  

The maximum aggregate loan amount a graduate or professional student may borrow is $138,500.

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Federal Direct PLUS Loans

Federal Direct PLUS loans are federally sponsored loans that parents can obtain to help pay the cost of education for their dependent undergraduate children. In order to obtain a PLUS loan, the student must first complete the Free Application for Federal Student Aid (FAFSA).  PLUS loans feature low interest rates and long-term repayment options.  While parents of all income levels are eligible a credit-worthiness evaluation is required.

Parents may borrow up to the cost of attendance less any other aid received by the student annually. They may also opt to borrow less than the maximum amount than they are eligible for. 

Effective beginning with Summer 2013, the PLUS application process at UNCG has changed.  Please follow the link below for help in filling out the Federal Direct Parent PLUS loan application.

Instructions for 2013-14 Federal Direct PLUS Loans

Instructions for Summer 2014 Federal Direct PLUS Loans

Instructions for 2014-15 Federal Direct Plus Loans - Online application will not be available until June 2, 2014

Federal Direct Graduate PLUS Loans

Federal Direct Graduate PLUS loans are federally sponsored loans that are available to graduate students who have borrowed up to their annual or aggregate limit under the Federal Student Loan program. In order to obtain a Graduate PLUS loan, the student must first complete the Free Application for Federal Student Aid (FAFSA). Graduate PLUS loans feature low interest rates and long-term repayment options.  While graduate students of all income levels are eligible a credit-worthiness evaluation is required.

Graduate students may borrow up to the cost of attendance less any other aid received by the student annually but must first apply for all federal student loan eligibility before a Graduate PLUS loan can be awarded.

Effective beginning with Summer 2013, the PLUS application process at UNCG has changed.  Please follow the link below for help in filling out the Federal Direct Graduate PLUS loan application.

Instructions for 2013-14 Federal Direct Graduate PLUS Loans

Instructions for Summer 2014 Federal Direct Graduate PLUS Loans

Instructions for 2014-15 Federal Direct Graduate PLUS Loans - Online application will not be available until June 2, 2014

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Exit Counseling

Borrowers who receive loans under the Federal Direct Student Loan Program are required to complete an online exit counseling session before withdrawing, graduating, or dropping below half-time attendance (even if transferring to another school). These loans include the Direct Subsidized, Direct Unsubsidized, and Direct Graduate PLUS loans.

The exit counseling session is intended to help you understand your rights and responsibilities as a student loan borrower and provides useful tips and information to help you manage your loans.

Please note that you must complete the entire session once you begin. If you exit the counseling before completing the session and return later, you will need to start over from the beginning. Be prepared to provide your driver's license number (if you have one), addresses and phone numbers for your next of kin, two references who live in the United States, and your future employer (if known).

Follow these instructions to complete the Exit Counseling Requirement:

  1. Go to www.studentloans.gov
  2. Sign in using your information and federal PIN number
  3. Click on Complete Counseling
  4. Click on Exit counseling
  5. Under Select Your Schools, select UNIVERSITY OF NORTH CAROLINA_GREE and then click Add School
  6. Complete the Exit Counseling Session

 

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Alternative Education Loans

Alternative education loans (also known as private education loans) are loans that are often used help bridge the gap between a student’s cost of attendance and the amount of federal, state and institutional financial aid that a student is awarded.  Alternative loans are credit based loans that are offered by private lenders and often require a good credit history and/or a co-signer with a good credit history.  These loans are usually more costly than federal education loans with interest rates and repayment terms that usually are not as advantageous to the borrower.

UNCG strongly encourages all students to complete the FAFSA and apply for federal and state programs before applying for an alternative loan.  Federal loans (Student, Perkins and PLUS) should always be the first option to consider when borrowing money to finance an education.  If you are considering an alternative loan, you should carefully evaluate each loan program to determine if it best meets your needs.

If you are planning to file a FAFSA it is best to wait to apply for an alternative loan until you receive your financial aid award from UNCG so you can see what financial aid you may be qualified for. 

Our office will certify an alternative education loan from the lender of your choice if the loan’s eligibility requirements are met.  However, if you choose not to apply for federal aid and want to use an alternative education loan to pay for school, the following consent form needs to be submitted to our office before certification can take place.

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Links to Loan Resources

National Student Loan Data System (NSLDS) is a U.S. Department of Education database. The NSLDS web site allows students to obtain information on their loan amounts, previous loans, outstanding loan balances, loan statuses, and disbursements.

Repaying Your Student Loans is a comprehensive resource guide on how to pay back student loans received from the U.S. Department of Education. This guide is available in both English and Spanish versions.

Department of Education Federal Direct Loan Information website provides a general overview of the Federal Direct Loan Programs. It includes information on the Federal Direct Loan process as well as loan features such as current interest rates and repayment plans.

CFI Student Loan Repayment Calculator

CFI PLUS Loan Repayment Calculator




 


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