Federal Loans

In order to apply for a federal loan, a student must submit a FAFSA. Based on a 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 are eligible.

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 using the appropriate form if any changes need to be made to your loans after they have been web accepted.

Federal Direct 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 student must begin repayment of the loan six months after leaving school or dropping below half time.

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. Interest will begin accruing six months after leaving school at the same time as repayment.

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.

To view the current interest rates and fees visit the studentaid.gov

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 studentloans.gov.

Loan Limits

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).

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 students are not eligible to receive subsidized loans.

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

Federal Direct Parent PLUS

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.

If a parent is denied for the PLUS loan there is an option through which the dependent student can receive the independent student loan amounts.

To view the current interest rates and fees visit the studentaid.gov

Instructions for the PLUS loans can be found under our Important Forms.

Federal Direct Graduate PLUS

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.

To view the current interest rates and fees visit the studentaid.gov

Instructions for the PLUS loans can be found under our Important Forms.

Exit Counseling

Borrowers who receive loans under the Federal Direct Student Loan Program are required to complete an online exit counseling session when 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 counseling is completed on studentloans.gov

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).

Federal Perkins Loan

The Federal Perkins Loan is awarded on the basis of exceptional financial need to citizens or eligible non-citizens enrolled at the undergraduate level, who have no prior bachelor’s degree. Awarding is based off of the FAFSA but funds are limited. The Perkins loan is not serviced by Federal Loan Servicers but rather by the school, at UNCG they are serviced by the Cashiers and Student Accounts Office. For more information on the Perkins loan visit Federal Student Aid.

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.