Educational loans must be repaid, so consider your anticipated future annual income before you take out a loan. Estimate your monthly payments with the Loan Payment Calculator. Never borrow more than is needed to attend school.
To disclose borrower rights and responsibilities, the federal government requires the completion of entrance loan counseling before loan funding is disbursed. Exit counseling is also required when a student ceases attendance.
Review additional information about loan limits, interest rates and the application process on the US Department of Education website.
- Direct Subsidized Loans – Subsidized loan eligibility is based on financial need. Interest is not paid on subsidized loans until the borrower enters repayment. Repayment commences after the borrower is no longer enrolled at least half time.
- Direct Unsubsidized Loans – Unsubsidized loans are available to students regardless of their financial need. Interest on unsubsidized loans will accrue if not paid while the borrower is enrolled. Repayment commences after the borrower is no longer enrolled at least half time.
Direct PLUS Loans for Parents of Dependent Students
- Parents of a dependent undergraduate student may apply for a Federal Direct PLUS loan. Repayment commences 30 days after the loan is fully disbursed.
- PLUS loan borrowers are required to pass a credit check. If a parent’s application for a PLUS loan is denied based on the borrower’s credit history, the dependent student may be eligible for an additional unsubsidized student loan.
Direct PLUS Loans for Graduate Students
- Graduate and Professional students may apply to borrow a Graduate PLUS loan after Federal Direct Loan eligibility has been exhausted. Repayment commences after the borrower is no longer enrolled at least half time.
- Graduate PLUS loan borrowers are required to pass a credit check.
Federal loans are generally the best options and should be your first consideration. Laws passed by Congress set federal loan interest rates and fees, and define clear terms and conditions for these type of loans.
However, private loans, also known as alternative loans, provide another borrowing option. Although the FASFA is not required, private loans may have varying interest rates and limited repayment options. You should consider alternative loans as a “last resort” lending option.
An option that you can use to review and compare private lenders is available at www.credible.com/NCState.
The Office of Scholarships and Financial Aid does not endorse, recommend, or promote any lender for private loans. The listing shown on Credible are not preferred lender lists, nor do they represent every lender that provides private educational loans. NC State will certify private education loan requests for any lender you choose, regardless if they appear on Credible or not.
The lender you choose will provide you with current interest rates, processing fees, and co-signer requirements. The lender based on the student and cosigner’s credit worthiness determines interest rates for loans.