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Students must complete a FAFSA to initiate the application process and are automatically considered for all Federal Loan programs and Federal Work-Study. Students may borrow up to $20,500 in Direct Student Loans per academic year.
Federal Unsubsidized Direct Student Loans
Federal Unsubsidized Direct Student Loans are available to graduate students who file the FAFSA and otherwise are eligible. Students may borrow up to $20,500 ($33,000 for some health professions) or the cost of attendance minus all other resources (including financial aid, tuition remissions). Interest begins accruing when the funds are disbursed to the student. Repayment begins when the student graduates or drops below half-time enrollment status. There are a variety of repayment plans. A portion of the loan may be cancelled upon completion of employment under certain terms and conditions. Students must be enrolled at least half-time to be eligible for Federal Direct student loans. More information about the terms and conditions are available at the following link: https://studentaid.gov/understand-aid/types/loans
PLUS Loans for Graduate or Professional Students
Graduate or professional students are eligible to borrow under the Federal Graduate Direct PLUS Loan Program up to their cost of attendance minus other estimated financial assistance. The terms and conditions applicable to Parent PLUS Loans also apply to Graduate/Professional PLUS loans. These requirements include a determination that the applicant does not have an adverse credit history, repayment beginning 60 days after the last disbursement of the loan, and a fixed interest rate of 7 percent in the Federal Direct PLUS Loan program. Applicants for these loans are required to complete the FAFSA. They must have applied for their annual maximum loan eligibility under the Federal Subsidized and Unsubsidized Direct Loan Program before applying for Graduate or Professional PLUS loan. They also must complete an entrance counseling session prior to first disbursement and an exit counseling session when the student leaves school.
Master Promissory Note
To receive a Direct Loan or PLUS loan for graduate students, the student is required to complete a Master Promissory Note (MPN) with the U.S. Department of Education Direct Loan Program at https://studentaid.gov. Students may use computers in the OSFA if desired.
Entrance and Exit Counseling
Students who receive a Federal Unsubsidized or Perkins Loan must complete loan entrance counseling prior to receiving the first disbursement of a loan. Students can complete this process at https://studentaid.gov. Students may use computers in the OSFA if desired.
These students must also complete exit counseling at the same location once they graduate or if they withdraw.
Non-Federal and Alternative Loans
Non-federal loans are often referred to as alternative loans because they represent an alternative to the federal loan program, and are typically the only funding option for students in non-degree programs.
The Direct Loans and PLUS Loans generally provide more favorable terms and conditions than non-federal loans, but not always. For that reason, we encourage students and their families to compare terms and conditions of each. Eligibility for non-federal loans is determined by the lender based on credit review. UNCW certifies the loan amount, but has no influence on the credit decision. A very small percentage of students are ineligible for federal loans. The most common reason for this ineligibility is failure to meet UNCW’s satisfactory academic progress policy. Please visit our website for more information on these financing options.
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