In early fall of 2007, detailed information on loan products, services,
and borrower benefits was requested of ten major lending institutions.
The information received was reviewed by a committee comprised of
University administrators outside of the Office of Student Financial
Aid. The goal was to select the best loan products in terms of
borrower benefits and cost savings over the life the loan to students
and parents. The costs of the loan products reviewed were derived
from a comparison chart verified by an independent accounting firm.
In November 2007, all lender participants were notified of the results
of the lender review process. As a result, College Foundation,
Chase Education Finance, and Sallie Mae were selected for inclusion on
our preferred lender lists for both Federal Stafford Loans and Federal
PLUS Loans.
It is University of North Carolina System policy to include at least
three lending institutions on preferred lender lists for the federal
loan programs. The Office of Student Financial Aid will not
discourage, refuse, or delay processing of a loan from a lender not on
the preferred list.
The preferred lender list will be reviewed and
updated on an annual basis. If you have any questions about this
policy or any of the loan processes at UNC Charlotte, please call the
Office of Student Financial Aid at 704-687-2461.
Students do have the option of selecting a different lender, and if so, OSFA
will promptly certify their loans. A database of lenders codes
can be found
here.
Federal Perkins Loan
The Federal Perkins Loan is a "need based", revolving loan fund utilizing both
federal and institutional funds. This award is a loan and must be repaid by the
borrower. The federal government pays the interest while the student is in
school at least half-time, during a nine-month grace period, and during periods
of deferment.
Federal Family Education Loan Programs (FFELP)
Federal Family Education Loan Programs (FFELP) are low interest loans that
undergraduates, graduates and parents of dependent undergraduates may obtain
from a lending institution such as a bank. They include the Federal Subsidized
Stafford Loan, the Federal Unsubsidized Stafford Loan and the Federal PLUS Loan.
These loan programs were created by Congress to help all eligible students and
parents, with and without financial need, pay for the student's educational
expenses.
Subsidized vs.
Unsubsidized Federal Stafford Loans
Regardless of the result of the FAFSA (i.e. whether or not you have financial
need as determined by the federal government), any degree-seeking student who is
a U.S. citizen or an eligible non-citizen may be eligible to receive a federal
student loan. For students with financial need determined by the FAFSA,
the loan is subsidized, which means the federal government will pay the interest
while you are in school. Students who do not have financial need may borrow an
unsubsidized loan. For these loans, the student is responsible for the interest
while in school.
Your financial aid award information will state whether your loan is subsidized,
unsubsidized, or a combination of both. You may then simply accept the
loans on-line via Banner Self-Service. For first-time borrowers, you must
complete a master promissory note and complete online loan counseling.
For continuing borrowers, upon award acceptance, your loans will be certified
with your previous borrower.
Information about Stafford Loan interest rates can be found
here.
Federal Stafford Loan Limits
(EFFECTIVE JULY 1, 2008)
Note: The below scenarios can reflect a combination of subsidized and
unsubsidized loans*
Dependent Undergraduates:
Freshmen may borrow up to $3,500* per year plus
an additional $2000 unsubsidized loan
Sophomores may borrow up to $4,500* per year
plus an additional $2000 unsubsidized loan
Juniors and Seniors may borrow up to $5,500* per year
plus an additional $2000 unsubsidized loan
Aggregate loan limits: $31,000* (no more than $23,000 of
which can be subsidized)
Independent Undergraduates:
Freshmen may borrow up to $9,500* per year (not to
exceed $3,500 in subsidized loans)
Sophomores may borrow up to $10,500* per year (not to
exceed $4,500 in subsidized loans)
Juniors and Seniors may borrow up to $12,500* per year
(not to exceed $5,500 in subsidized loans per year)
Aggregate loan limits (that all undergraduates may
borrow for all years) is: $57,500* (no more than $23,000
of which can be subsidized)
Graduate Students:
Graduate student may borrow up to $20,500* per year (not
to exceed $8,500 in subsidized loans per year)
Aggregate loan limits: $138,500* (no more than $65,500
of which can be subsidized)
Note: Students who have applied for and been approved for an
alternative loan and who have additional unsubsidized Stafford Loan
eligibility will have their alternative loan decreased by the amount of
unsubsidized Stafford Loan. The student will then be awarded the
remaining amount of the alternative loan.
Federal Parent PLUS Loans
Only eligible parents of eligible dependent
undergraduates may borrow through the Federal PLUS Loan Program. The
amount parents may borrow is the student's Cost of Attendance (COA)
minus the estimated financial aid to be received during the loan period.
Parents must begin repaying both principal and interest within sixty
days after the loan is disbursed. The lender charges interest on the
loan from the date the first disbursement is made until the loan is paid
in full. The current interest rate is 8.5% a credit check will be
performed.
Note: If due to poor credit a
parent is denied the Federal PLUS loan, an eligible student will
be awarded an additional unsubsidized loan. If the student does
not wish to borrow the additional unsubsidized loan, he/she will
need to notify the Office of Student Financial Aid of this decision in
writing.
Federal Graduate PLUS Loan
Graduate PLUS loans are federally sponsored loans
for students attending graduate school. With a Grad PLUS loan, you may
borrow up to the full cost of your education, less other financial aid
received including Federal Stafford loans. The current fixed interest
rate is 8.5% and a credit check is required.
Non-federal loans may be available to students who do not qualify for federal
student loans or to those who need additional loan assistance beyond the federal
loan maximums. Links to several of the more frequently used alternative
loans are provided below.
The amount of an alternative educational
loan is normally limited to the schools estimated total cost of attendance minus
scholarships, grants, and other loans received by the student.
Note: Students who have applied for and been approved for an
alternative loan and who have additional unsubsidized Stafford Loan eligibility
will have their alternative loan decreased by the amount of unsubsidized
Stafford Loan. The student will then be awarded the remaining amount of
the alternative loan.
