fbpx
North Central State College North Central State College

Loans

Loan Disbursements

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.

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.

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.

A Minute to Learn It - Borrowing Student Loans
Thumbnail of A Minute to Learn It - Borrowing Student Loans

Accepting the Direct Loan

*Please allow 5 days office processing time after completing E-MPN ,Entrance counseling and Annual Student Loan Acknowledgement  for loans to appear on your account*

To receive the student loan you must:

  1. If you want the loan offered to you for this year, you must “accept” the loan. You do this by completing the entrance counseling, Master Promissory Note and Informed Borrowing Confirmation/Annual Student Loan Acknowledgement
  2. Complete Loan Entrance Counseling  at https://studentaid.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.
  3. Complete a Loan Agreement (Master Promissory Note) at https://studentaid.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.
  4. 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.

Eligibility Requirements

  • 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.

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, 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://studentaid.gov/(opens in a new window)

Things to know before signing the Direct Loan E-MPN:

What You Owe

You can see all of your loan information your dashboard of your Student Aid Portal.  This system lists all of the student loans you have received at various schools.

www.studentaid.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 Offer Use the Loan Adjustment/Cancellation Form to lower the amount, raise the amount or cancel the loan.

Students are offered the maximum they are eligible for in student loans at the time the offer is made. If you need to borrow more money after accepting the original Financial Aid Award Offer amount, please contact the Financial Aid Office.  Please note that completing a loan increase form does not guarantee that an increase will occur.   The office looks at all student loan increase forms on a case-by-case basis.

Maximum Loan Amounts

Dependent Undergraduates       Total (Subsidized and Unsubsidized)   Maximum Subsidized
First Year                                                           $5,500                                                           $3,500
Second Year                                                      $6,500                                                           $4,500

Independent Undergraduates    Total (Subsidized and Unsubsidized)  Maximum Subsidized
First Year                                                           $9,500                                                            $3,500
Second Year                                                      $10,500                                                           $4,500

Third Year + (Bachelor’s degree students) $12,500                                                            $5,500

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.

Cohort Default Rates

The U.S. Department of Education annually produces federal student loan cohort default rates.  This rate is the percentage of William D. Ford Federal Direct Loan (Direct Loan) borrowers in repayment, who during a federal fiscal year, entered default on their loan(s)

Year     Default Rate     Borrowers in Repayment    Borrowers in Default

2022     0.0%                        354                                                    0

2021     0.0%                        391                                                    0

2020     0.0%                        435                                                    0

For more information on the Cohort Default Rate of NC State as well as schools nationwide visit Federal Student Aid’s Cohort Default Rate school search tool at https://nsldsfap.ed.gov/cdr-searchable-database/school/search, opens in a new window.

A Minute to Learn it - Student Loan Repayment Thumbnail of A Minute to Learn it - Student Loan Repayment

Related Websites

General Federal Student Aid
studentaid.ed.gov, opens in a new window
800.433.7327

Federal Student Aid Ombudsman
nslp.org/borrowers/ombudsman
To resolve disputes and issues with your loan servicer.
877.557.2575

 

Direct Loan Interest Rates for Loans First Disbursed on or After July 1, 2024

6.53%

Direct Unsubsidized Loans – Undergraduate

6.53%

Direct Unsubsidized Loans – Graduate or Professional

8.08%

Direct PLUS Loans – Parents and Graduate or Professional Students

9.08%

2024/25 Loan Dates

Fall 2024
  • Funds Disbursed to College  09/10/24 & 10/22/224
  • Refunds by Direct Deposit 09/13/24
  • Refunds Mailed to Students  09/17/24 & 10/29/24

Spring 2025

  • Funds Disbursed to College  02/11/25 & 03/25/25
  • Refunds by Direct Deposit 02/14/25
  • Refunds Mailed to Students 02/18/25 & 04/01/25

Servicer Contact Info

MOHELA
888.866.4352
mohela.com

NelNet
888.486.4722
nelnet.com, opens in a new window

Sallie Mae
800.722.1300
salliemae.com, opens in a new window

Student Aid
800.433.3243
studentaid.gov, opens in a new window

ESA/Edfinancial
855.337.6884
edfinancial.com/DL, opens in a new window