Undergraduate Bulletin > Expenses and Financial Aid > Financial Aid > Loans

Loans

UNCG offers loan assistance through the programs listed below to graduate and undergraduate students. Students are considered for loan assistance when they complete the Free Application for Federal Student Aid (FAFSA). The Financial Aid Office determines loan eligibility from the program that is most suitable to the student’s circumstances. When receiving a loan, the student must sign a promissory note. Students are encouraged to manage their loan debt load and to be aware of debt levels when they receive additional loans.

Short-term loans for emergency expenses of up to $700 are available through the Financial Aid Office during the time students are enrolled. Contact the Financial Aid Office regarding the terms and conditions applicable to the Emergency Loan Program.

Federal Student Aid Loans

All students who are U.S. citizens or permanent residents, regularly admitted to UNCG, and who are enrolled at least half-time are eligible to be considered for assistance through the Federal Student Aid Loan Program. Repayment on Student Aid Loans normally begins six months after the borrower graduates or terminates half-time enrollment.

The two types of Federal Student Aid Loans are Subsidized and Unsubsidized. The Subsidized loan is awarded on the basis of financial need. The federal government pays the interest on this loan until repayment begins and during authorized periods of deferment. The Unsubsidized loan is not awarded on the basis of need. Interest accrues on the Unsubsidized loan from the time the loan is disbursed until it is paid in full. Interest may be paid as it accumulates, or may be added to the loan principal (capitalized). The FAFSA determines your eligibility for each type of loan.

For the Subsidized Student Aid loan, annual borrowing is limited to $3,500 for freshmen, $4,500 for sophomores, $5,500 for juniors and seniors, and $8,500 for graduate study. Total Subsidized loan assistance at the undergraduate level may not exceed $23,000. The aggregate limit for Subsidized Student Aid loans through the graduate level is $65,500.

Independent students, including graduate students, or dependent students whose parents are unable to get a PLUS Loan (see below) may be eligible to borrow additional monies under the Federal Unsubsidized Student Aid Loan Program. Freshmen and sophomores may be eligible to borrow an additional $4,000, upperclassmen an additional $5,000, and graduate students may be eligible to borrow an additional $12,000 in Unsubsidized Student Aid loans.

The interest rate on Student Aid loans is variable if your loan is disbursed on or after July 1, 1994. The variable rate is adjusted each year and will never exceed 8.25%.

Federal regulations govern the Federal Student Aid Loan program, including but not limited to eligibility criteria, entrance and exit interviews, and fund disbursement.

Federal PLUS Loans

This federal government program allows parents of dependent students to borrow to meet educational expenses. These loans are available in addition to the Federal Student Aid Loans up to the cost of attendance. The Federal PLUS program provides nonsubsidized loans at a variable interest rate that is not to exceed 9%. The amount borrowed under this program may not exceed the cost of education minus other aid received. Repayment usually begins 60 days after the loan is disbursed.

Federal Perkins Loans

Students with exceptional need may be eligible for a Federal Perkins Loan. The interest rate on the Perkins loan is 5%. Repayment is made to the school, and normally begins nine months after the borrower graduates, leaves school, or drops below half-time enrollment. UNCG will automatically consider any student who files the FAFSAfor the Perkins Loan.

North Carolina Student Loans for Health, Science and Mathematics

Legal residents of North Carolina accepted as full-time students in accredited associate, baccalaureate, master’s, or doctoral programs leading to a degree in health, mathematics, nursing, or science may be eligible for this type of loan. Maximum loans range from $3,000 to $8,500 depending on the degree level. Recipients are selected according to major, academic capabilities, and financial need.

Interested students should request information and applications as soon as possible after January 15 from the North Carolina Student Loan Program for Health, Science, and Mathematics, PO Box 13223, Research Triangle Park, NC 27709, telephone: 919/549-8614.