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Loans
Loans
Student loans are an option to help pay for your educational costs. The first step in getting federal student aid is to complete the Free Application for Federal Student Aid (FAFSA).
The loans that have been offered to you will be in your Student Center in ConnectCarolina. To assist in your borrowing decisions, you can also use the cumulative borrowing page in Student Center to keep track of previous loans you have borrowed. You should consider your financial needs and make well-considered decisions about student debt. Please budget carefully and borrow only what you need to be successful.
Loan Guide
Federal Subsidized and Unsubsidized Loans are available to help cover the educational cost of attendance.
- Federal Subsidized Loans are offered based on financial need. Interest on a subsidized loan is deferred as long as you are enrolled at least half-time.
- Federal Unsubsidized Loans are offered if you do not show financial need, or if you find you need additional loan funding to help in covering cost of attendance. If you have room in your cost of attendance budget, these additional loans can be requested by completing the unsubsidized loan request form on our forms page. Interest will begin to accrue on a Federal Unsubsidized Loan once you receive it.
Interest rates vary depending on when the loan is disbursed. Visit the Federal Student Aid Website for the most up to date interest rates and fees.
Once you decide to borrow money, you will have the option to accept, decline or adjust offered loan amounts. To receive your loans, you will need to complete loan requirements, such as loan entrance counseling and signing of a master promissory note. If you need to complete loan requirements, they will appear on your To Do list in the Student Center of ConnectCarolina after you have accepted one or more loans.
Accepting/Declining and Adjusting Loans
- You can view a video on how to accept/reduce/decline loans here.
- You can view a guide on how to accept/reduce/decline loans here.
Completing Entrance Counseling/Promissory Notes
- You can view a video on how to complete entrance counseling/master promissory notes here.
- You can view a guide on how to complete entrance counseling/promissory notes here.
- Log into your account at studentloans.gov and find the links for Complete Loan Counseling and Complete Loan Agreement. The Loan Agreement is your promissory note.
UNC Loans are based on financial need and administered by the University. If you complete a FAFSA and are found eligible, a UNC Loan may be offered as part of your overall financial aid package.
Interest rates are fixed at 5%, and interest is deferred as long as you are enrolled at least half-time. UNC Loans are repaid to ECSI, the loan servicer.
Once you decide to borrow money, you will have the option to accept, decline or adjust your offered loan amounts. To receive your loans, you will need to complete certain loan requirements, such as loan entrance counseling and sign a master promissory note. Any loan requirements you need to meet will appear on your To-Do list in the Student Center of Connect Carolina.
Accepting, Declining or Adjusting Loans
- A video on how to accept/reduce/decline loans is here.
- A guide on how to accept/reduce/decline loans is here.
Completing Promissory Notes
To receive a UNC Loan, you’ll need to complete a promissory note. Within a few days of accepting your loan in ConnectCarolina, you should get an email from ECSI with login information and a PIN number to help you complete this task.
The University Cashier’s Office handles ECSI promissory note issues. Visit their website for a step-by-step guide on these topics.
Once your electronic promissory note is complete, it may take up to five days for the loan to disburse.
Federal Parent Plus loans may be available for you. See our Parent Guide.
Private student loans are credit-based, non-federal student loans.
You can research private education loan lenders to determine if a private loan is best for your individual situation.
Factors to consider when choosing a private loan
| Amount of loan debt |
| Timeline for repayment. Is it possible for you to repay the loan quicker than the standard 10-year repayment period? |
| Best interest rate. Keep in mind that the Prime Rate will not always be as low as it is currently. |
| Your credit score and, if applicable, a co-signer’s credit score. Better credit often means better loan terms, such as borrower protections. |
repayment information
Borrowed loans require repayment once you complete your education. Carefully consider your anticipated future annual income before making borrowing decisions. You can use the Loan Payment Calculator to estimate monthly payments. Our goal is for you to only borrow what you need to be successful.
Borrower rights and responsibilities are disclosed through completion of the federally required Entrance Loan Counseling (before loan funding is disbursed) and Exit Loan Counseling (when enrollment falls below half-time).
Federal loan exit counseling provides important information to prepare you to repay your federal student loans. If you have received a subsidized, unsubsidized or PLUS loan under the Direct Loan Program or the FFEL Program, you must complete exit counseling each time you: drop below half-time enrollment, graduate or leave school. You can complete federal loan exit counseling here.
Federal Loan Repayment
Information about loan limits, loan fees, and repayment plans can be found on the Federal Student Aid Website.
| Loan Type | Repayment Information |
|---|---|
| Subsidized Loan | Begins six months after your last term of enrollment or if your enrollment falls below half-time (whichever comes first). |
| Unsubsidized Loan | Begins six months after your last term of enrollment or if your enrollment falls below half-time (whichever comes first). |
| Parent PLUS Loan | Begins 30 days after loan disbursement. Borrowers can request a deferment with their loan servicer to postpone payments. |
University Loan Repayment
Institutional Loans are repaid to ECSI. Additional information about repayment and interest rates can be found on the ECSI website.
| Loan Type | Repayment Information |
|---|---|
| UNC Loan | Begins six months after your last term of enrollment or if your enrollment falls below half-time (whichever comes first). |
| Institutional/Long Term University Loans | Begins nine months after your last term of enrollment or if your enrollment falls below half-time (whichever comes first). |
Private Loan Repayment
Private student loans are non-federal; credit based student loans granted from a lender such as a bank, student loan company, or other private organization. Check directly with your private loan lender for repayment terms and conditions.
understanding Exit counseling
Federal loan exit counseling provides important information to prepare you to repay your federal student loans. For subsidized and unsubsidized loans, you must complete exit counseling each time you: drop below half-time enrollment, graduate or leave school.
Exit counseling explains your rights and responsibilities as a student loan borrower and provides:
- Your outstanding loan balance
- An estimated monthly payment amount
- An explanation of the various repayment plans
- Pros and cons of loan consolidation
- Information regarding loan forgiveness, deferments, and forbearance
The type(s) of loan exit counseling you are required to complete depends upon which federal educational loan(s) you have borrowed.
You can check out the Direct Loan Exit Counseling Guide here.