FAQs

Loans

Are there Lenders that do not require a student to be degree seeking, less than half-time or for a past due balance?

Yes to all.

Can you defer a Private loan until after graduation?

Each lender has different borrower benefits and it is important to review them all carefully before choosing an option.

Does the money come directly to me or is it posted to my student account?

The money is posted to your account.

How do I apply for a Parent Plus Loan?

  • In order to obtain a plus loan, the student must first complete the FAFSA (Free Application for Federal Student Aid).
  • To initiate the Plus loan process, a  Parent Plus Loan Request form must be completed and returned to the  Financial Aid Office. The form can be found here.
  • If you applied at Direct Loans we still need the Parent Plus Loan Request Form to create an electronic certification record that will be sent to the Department of Education.
  • All Plus Loan Funds credit to the student’s account.  If there is a credit on the student’s account after all charges for the semester have been paid, then it will be returned to the parent borrower, or the student, as you have indicated on the request form.
  • You do have the option to defer payments.  When you go to sign the Master Promissory Note at Studentloans.gov you may select the deferment option at that time.

 

How do I sign the Mastery Promissory Note?

To sign the Master Promissory Note for a Stafford or Parent Plus Loan please go to  Studentloans.gov.  You will sign the Master Promissory Note electronically using a Federal Pin number the same that was used on the FAFSA.  Be very careful that you sign your Master Promissory Note so that it exactly matches your name on your Social Security Card.  This will prevent any delays in the releasing of your funds.

How long will it take for an alternative loan to process?

It can take up to 3 to 4 weeks for the loan to post to the student's account.

I want to change my loans. How do I do that?

To update or make changes to your loan account, please complete the Loan Change Request form. Once received, we will be able to process your request. 

 

 

What is a Parent PLUS loan?

Parent PLUS loans are loans that are applied for by the parent(s) of the student.  Parents of a dependent undergraduate student may apply for a Federal Direct PLUS loan to help meet the student's cost of attendance not covered by other financial aid. Interest rates and repayment provisions on PLUS loans are generally more favorable than other alternative loans available for educational expenses. FAFSA is required, and parents must submit a PLUS loan request form to the Office of Student Financial Aid for certification of the student's cost of attendance as well as other anticipated financial aid.

 

 

What is an alternative loan?

Alternative loans are private education loans that help bridge the gap between the actual cost of your education and the amount the government allows you to borrow in its programs. Private loans are offered by private lenders and there are no federal forms to complete. Eligibility for private student loans often depends on your credit score. 

 

 

What is Loan Entrance Counseling?

The U.S. Department of Education requires that students complete an online loan entrance counseling session before loan funds can be disbursed.Loan entrance counseling provides students with information regarding their rights and responsibilities in regard to their federal student loans.  It can be completed at StudentLoans.gov.

What is the current interest rate on a Federal Direct PLUS Loan?

The current Interest Rate for the Parent Plus Loan is 7.9%. 

What is the interest rate for a Private loan?

The interest rates currently range from 3% to 13% depending on the lender and your credit score.

What’s the difference between a “Subsidized” and an “Unsubsidized” Loan?

A federal subsidized student loan is considered need-based financial aid, as determined by the FAFSA. The student must have need in the financial aid package to qualify for a subsidized loan. The interest on a subsidized loan is paid by the government while the student is in school and through the six-month grace period.

An unsubsidized student loan begins accruing interest from the time the loan is disbursed. Students may pay the interest on the unsubsidized loan or let it accumulate.

When will my loans begin processing?

At UNC Charlotte, the Office of Student Financial aid begins to process loans for the upcoming academic year after July 1st (when the university's new fiscal year begins). Unfortunately, until then we are unable to download Master Promissory Notes for new students. As long as you have completed it on the federal website (www.studentloans.gov) we will receive it when we begin processing new loans in July. 

 

 

 

Where can I find a Lender?

You may choose any lender of your choice.  This handy FASTChoice loan tool walks you through important information about types of funding and money management. It also presents your new responsibilities if you go on to borrow money.

After you review this information, you will see a list of lenders offering loan products in a way that makes it easy to compare them.

Why can’t I get enough federal student student loan money to take care of my costs?

Federal student loan limits, for each academic year, are established by congress to help students manage loan debt.

  • Freshmen may borrow up to $5,500 ($9,500 for independent students and students whose parents are denied the PLUS Loan)
  • Sophomores may borrow up to $6,500 ($10,500 for independent students and students whose parents are denied PLUS Loan)
  • Juniors and seniors may borrow up to $7,500 ($12,500 for independent students and students whose parents are denied PLUS Loan)

Why did I not receive any financial aid other than loans?

Students with a large EFC number may not be eligible for need-based financial aid. Federal stafford loans are considered financial aid and are available to help students meet educational costs. Students may accept or decline any loan, or accept a portion of loans offered.

Why do I have to complete a Master Promissory Note (MPN) to receive my loans?

A Master Promissory Note is a promise to repay the loan you have been given to help with the cost of your education. An MPN is usually signed online, using the 4-digit FAFSA PIN number as the signature.

Why is there an Exit Counseling requirement on my account?

Exit Counseling is a federal requirement for all Federal Stafford Loan recipients and Federal Perkins Loan recipients. Exit counseling was created to ensure that you understand your rights and responsibilities as a borrower. During the counseling, you will learn how to make payment of your loans easier and how to get help and protect your credit rating if you have problems.