Student loans are processed in two parts each semester. The first half of a student loan will be applied to your account on the 5th week of the semester, if a refund is due at that time, a direct deposit or paper check will be made on the 6th week. The second half of a student loan will be processed on the 10th week of a term. If a refund is due at that time it will be processed on the 11th week of the term. “Late Start” classes can delay a refund check.
New 150% Rule
The U.S. Department of Ed has issued this information concerning first time student loan borrowers and the Department’s 150% rule. Please take the time to read this announcement.
Refunds and Late Start Classes
Not all classes start the first week of the semester. If you are enrolled in a late start class, your financial aid or refund may be affected. Students are not eligible to have aid applied for a late start class until the class begins and your instructor reports you as having attended. Refunds of excess aid may occur later for a class that begins after the first week of the semester. Please check your award letter and “Aid Award Notes” insert for more information.
Last day to request an increase or accept an offered student loan is the Friday of the 3rd week of each term.
Applying for a Direct Loan
After completing the general Financial Aid Application Process, the Financial Aid Office will automatically award you a Direct Loan in the “Offered” status on your Financial Aid Award Letter.
Accepting the Direct Loan
To receive the student loan you must:
- If you have had a loan at the College in the last four years and you do want to receive the loan awarded to you for this year, you need do nothing, the loan is approved and accepted.
- If you have not had a loan here in the last four years and you do want to receive the loan awarded to you for this year, you must “accept” the loan.You do this by completing both entrance counseling and a Master Promissory Note.
- Complete Entrance Counseling for the new Direct Loan at https://StudentLoans.gov, opens in a new window or follow the link provided at MyNC.
All new students, transfer students, and new loan borrowers must complete Direct Loan Entrance Counseling regardless of any previous Entrance Counseling for other loans or schools.
- Sign a Master Promissory Note at https://StudentLoans.gov, opens in a new window or follow the links provided at MyNC.
All students, new loan borrowers, and transfer students must complete an E-mpn.
- You will see the loan funds on MyNC within 5 business days of completion of these steps.
Print and keep your confirmations, Entrance Counseling and Master Promissory Note submissions.
- If you do not want the offered loan, or want a lesser amount, please use the Loan Adjustment/Cancellation Form for the current academic school year.
- Not in default on a Federal student loan and do not owe a repayment on a Federal grant; and
- Enrolled and actively attending/participating for at least six required credit hours in a program eligible for Federal aid; and
- Federal Pell Grant eligibility has been determined by completing the FAFSA; and
- Satisfactory Academic Progress standards are met; and
- You have unmet need (PDF), opens in a new window in paying for your NC State education; and
- You have completed all loan application procedures, ie: entrance counseling and e-mpn.
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, opens in a new window 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, opens in a new window.
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 https://StudentLoans.gov, opens in a new window
Things to know before signing the Direct Loan E-MPN:
- your FSA ID (PDF), opens in a new window
- 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.
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.
Please note, we will not process loan increases for the current term after the third week of that term unless the student owes a tuition bill.
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 (PDF), opens in a new window. 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 term for aid eligibility to be restored for that term. Any defaults cleared after the first week will be reviewed for the next term.