Loans
New Loan Program
May 18, 2010 NC State switched to a loan program called the William D. Ford Direct Loan. This has replaced the previous Stafford Loan program.
Direct Loan FAQs
How do I apply for a Direct Loan?
What are the eligibility requirements?
What is Entrance Counseling and Exit Counseling?
What is a Mastor Promissory Note?
What will happen to my previous Stafford Loans?
How much do I currently owe?
How much can I borrow?
Do I have to accept the loan offered in my Financial Aid Award Letter?
What if I need to borrow more money than the amount in my Financial Aid Award Letter?
What if I borrowed too much?
What if I didn't borrow enough?
How do I clear a previous loan default?
Applying for a Direct Loan
After completing the general Financial Aid Application Process, the Financial Aid Office will automatically "offer" you a Direct Loan in your Financial Aid Award Letter.
Accepting the Direct Loan
You can choose to accept or reject the loan shown in your Financial Aid Award Letter.
To accept the loan:
- Complete Entrance Counseling for the new Direct Loan at http://www.StudentLoans.gov
All borrowers must complete new Direct Loan Entrance Counseling regardless of any previous Entrance Counseling for other loans.
- Sign a Master Promissory Note at http://www.StudentLoans.gov
- You will see the loan as pending aid on MyNC within 10 business days of completion of these steps.
Print and keep your confirmations, Entrance Counseling and Master Promissory Note submissions.
To reject the Loan:
Fill out a Loan Adjustment/Cancellation Form and return it to the Financial Aid office.
Eligibility Reqirements
- 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.
Entrance/Exit Counseling
Counseling helps you understand all the details of the loan agreement and covers topics like:
- When to start repaying your loan
- The cost of interest
- Consequences of failing to repay your loan
All borrowers must complete Entrance Counseling for the Direct Loan program regardless of any previous Entrance Counseling for other loans.
If you have previous loans you must also complete Exit Counseling provided by the school that issued your previous loans.
When you graduate, become a less than half time student, or discontinue attending classes, you must complete Exit Counseling on-line.
Master Promissory Note
A Master Promissory Note is the legal contract between you and the lender by which you promise to repay the loan. Signing a MPN is the first step in accepting a Direct Loan from your Financial Aid Award Letter. A MPN may be signed on-line at http://www.StudentLoans.gov
Things to know before signing the Direct Loan E-MPN:
- your PIN
- you are an UNDERGRADUATE while attending NCSC
- you are completing an E-MPN for Subsidized/Unsubsidized loan. (Not a Graduate PLUS or Parent PLUS)
What You Owe
You can see all of your loan information at the National Student Loan Data System (NSCDS). This system lists all of the student loans you have received at various schools.
http://www.nslds.ed.gov
Please check this website BEFORE accepting more loans. The total amount you owe may be more than you realize.
Changing Loan Amounts
You can request a different amount than the number shown in your Financial Aid Award Letter. Use the Loan Adjustment/Cancellation Form to lower the amount, raise the amount or cancel the loan.
If you need to borrow more money after accepting the original Financial Aid Award Letter amount, please contact the Financial Aid Office.
Maximum Loan Amounts
A typical student receives $3500 to $4500 per year in loans. You can borrow larger amounts if you meet specific criteria.
Borrowing Too Much
Borrowing more than is needed to pay for tuition and books is highly discouraged. Direct Loans are meant to pay for tuition, books and school related expenses. Do not borrow more than you need to also pay for non-school related items. Direct Loans cannot legally be used to pay for your personal living expenses or to purchase an automobile.
If you borrowed too much:
- Pay the excess amount back to the lender
- Or save the excess amount for the next school year tuition and books
Clearing Previous Loan Defaults
If you are in default on a previous loan you will not be offered new loans at NC State. However, you can clear a default by submitting a Default Clearance Form. This will allow you to be reinstated for new loans at NC State.
All default clearance forms must be received by the first week of the quarter for aid eligibility to be restored for that quarter. Any defaults cleared after the first week will be reviewed for the next quarter.
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