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.  Beginning with the 2010-2011 academic year, UNCG will award and process 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.

Instructions for completing Entrance Counseling and Master Promissory Note

 

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. Graduate and professional students are no longer eligible to receive Federal Direct Subsidized Loans effective for loans made for periods of enrollment (loan periods) beginning on or after July 1, 2012. 

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

 

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.  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.  In order to obtain a PLUS loan at UNCG, the student must first complete the Free Application for Federal Student Aid (FAFSA).  Based on the student’s FASFA information, the Financial Aid Office will determine the maximum amount of PLUS loan eligibility.  Parents may opt to borrow less than the maximum amount awarded.  To initiate the PLUS loan borrowing process, a Federal Direct PLUS Loan Request form must be submitted to the Financial Aid Office.

• 2011-2012 Federal Direct PLUS Loan Request Form
• 2012-2013 Federal Direct PLUS Loan Request Form

The completion of a Master Promissory Note is required for all parents borrowing Federal Direct PLUS Loans for the first time. The PLUS MPN can completed at www.studentloans.gov.

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. 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. Students must first apply for all Federal Student loan eligibility before a Graduate PLUS loan can be awarded. In order to obtain a Graduate PLUS loan at UNCG, a student must first complete the Free Application for Federal Student Aid (FAFSA). Upon request, the Financial Aid Office will then determine the maximum amount of a student’s Graduate PLUS loan eligibility. To initiate the Graduate PLUS loan borrowing process, a Federal Direct Graduate PLUS Loan Request form must be submitted to the Financial Aid Office.

• 2011-2012 Federal Direct Graduate PLUS Loan Request Form
• 2012-2013 Federal Direct Graduate PLUS Loan Request Form

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

 

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.

• 2011-2012 Alternative Loan Consent Form
• 2012-2013 Alternative Loan Consent Form
• Information on Alternative Loans
  

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