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 Loans at NC State  

Do I need a school loan?

            Yes  – if grants and personal funds don’t cover all tuition and book expenses.

No  – if tuition and book expenses are already covered.  Loans are not meant to pay for your personal living expenses and cannot legally be used to purchase an automobile.

What loans are available?

Federal Stafford Student Loans are the main type of loan for NC State students.  They are provided by banks and are governed by Federal government rules.  They do not have to be repaid while you are attending the College at least half-time.  A Stafford loan is not the same as a “Direct” loan which students at some colleges, such as Ohio State or Ashland University, can receive.  Direct loans are not available at NC State.

Are there other college loans?

Federal PLUS Loans are made to parents of dependent students to help pay college expenses.  They are provided by banks and require credit approval.  Repayment begins soon after funds are paid out.  Contact the NC State Financial Aid Office for application materials.

Alternative Loans (also called Private Loans) are made by banks to students, but unlike Stafford Loans, they are not subject to government rules.  A credit check, and possibly a co-borrower, is required.  Alternative loans are typically taken out by those who don’t qualify for, or who want more than they can receive from, a Stafford loan. Click here for further Alternative Loan information.

How much can I borrow with a Stafford loan?

            First year students can borrow up to $3500 per year.

Second year students can borrow up to $4500 per year.  Second year students are those who have earned at least 36 credit hours at NC State.

Loans are not processed at NC State for those who have an outstanding student loan balance of $16,000 or more.

Am I eligible for a Stafford loan?

Yes, if:

You are not in default on a Federal student loan and do not owe a repayment on a Federal

 grant; and                       

You are enrolled for at least six credit hours in a program eligible for Federal aid; and

You have already had your Federal Pell Grant eligibility determined; and

You are meeting Satisfactory Academic Progress standards; and

You have unmet need in paying for your NC State education; and

You have completed all loan application procedures.

Who is involved in processing a student loan?

The borrower (student) applies for, receives, and repays the loan.

The school (NC State) determines eligibility and establishes the dollar amount of the loan.

The servicer (Great Lakes Higher Education Guaranty Corporation) represents the bank, and disburses and receives repayment of the loan.

What are the Stafford loan application procedures?

After you have:

1.  Filled out and filed the FAFSA, and have

2.  Completed all other general financial aid application procedures, and have

3.  Had your eligibility for a Federal Pell Grant determined,

you apply for a student loan by completing or submitting...

Entrance Counseling is required for all first time borrowers.  You will be provided with important information about student loans and how to manage indebtedness.  Entrance Counseling is completed on-line from this site. 

The NC State Loan Request Form gathers information from you which is needed to process a loan.  The form is accessed on-line from this site.

The Master Promissory Note (MPN) is the legal contract between you and the bank by which you promise to repay the loan.  The MPN requires you to provide your driver’s license number, and the names, addresses, and phone numbers of two people who know you well and who do not live with you nor with each other.  An MPN may be accessed on-line from this site.  It may be electronically signed using your Federal financial aid PIN.

The school, once all required procedures have been completed and it has determined that you are eligible for a loan, certifies your eligibility and requests that loan proceeds be disbursed according to an established schedule.

The servicer completes its specific processes and sends the loan’s proceeds, either electronically or by check, to the school.

The NC State Cashier’s Office receives the loan proceeds, credits them to the student’s account, and mails any refund of excess funds to the student.

Important Reminders

Student loans must be repaid.

Your loan will be canceled if your enrollment drops below six credit at any time during the loan period.

Who do I contact if I have questions about student loans?

            NC State Financial Aid Office  – 419-755-4899

            Great Lakes Higher Education Guaranty Corporation  – 800-377-9095

Are you ready to begin applying for a Federal Stafford Loan?