Apply Today Request Information Plan a Visit Giving to NCWC

Loans

Federal Education Loans

North Carolina Wesleyan College participates in the major federal student loan programs to give our students the full range of options available for paying for college. The federal loan programs offer a secure, government-regulated and reasonably affordable way to invest in yourself and your goal of a higher education.

Student Loans are financial obligations that must be repaid. While some loans are based on financial need, there are loan programs available to all federally-eligible students regardless of income. Keep in mind that you should not borrow more than you need or can comfortably repay after leaving school. We recommend using the Loan Repayment Calculator on the Federal Student Aid website as a guide as to what your monthly payments will be once you enter repayment.

  • Federal Perkins Loan Program
  • Federal Direct Loan Program
  • Federal Direct PLUS Loan Program

Federal Perkins Loan - The Federal Perkins loan is a low interest rate loan (5%), offered to students who demonstrate exceptional financial need.  There are no fees charged for this loan, and the federal government pays the interest while you are enrolled at least half-time.  There is a nine-month grace period which begins once you graduate, withdraw from school, or your enrollment drops to below half-time status.  Repayment begins at the end of the grace period.

Federal Direct Loan Program (Subsidized and Unsubsidized) - North Carolina Wesleyan College participates in the Direct Loan program, which offers Stafford Loans for students as well as supplemental PLUS loans for graduate students or parents of dependent undergraduate students.  Direct loans offer a variety of deferment and repayment options, and are financed directly by the U.S. Department of Education so there’s no need to choose a lender.  Please refer to the Stafford Annual Loan Limits Chart for the maximum amount students may borrow in Federal Stafford Loans per academic year.     

Federal Direct Loan - A Federal Direct loan is a low-interest loan available to college students who are enrolled at least half-time, enrolled in a degree granting program, and meet other general requirements.  These loans do not require credit approval; eligibility is determined by filing the FAFSA application.  Payment of principal is deferred while students are enrolled in school at least half-time.  After you graduate, withdraw, or drop to less than half-time enrollment, you will have a six-month grace period – during which time no payment on principal will be due.  Repayment on the principal amount begins at the conclusion of the grace period. 

  • Direct Subsidized Loans

A subsidized loan is awarded on the basis of financial need.  The U.S. government pays (or subsidizes) the interest on this loan while you are enrolled at least half-time, and until the end of the six-month grace period.

Interest Rates

Undergraduate Students Only

First Disbursement of a Loan

Made on or after

Interest Rate

July 1, 2010

4.5 %

July 1, 2011

3.4 %

July 1, 2012

6.8%

Loan Origination Fee

There is a 1.0% Origination fee on the Direct Subsidized Loan; (if you borrow $3,500, you will actually receive $3,482.50 – or $17.50 less).  Once you enter repayment, if you make your first 12 monthly payments on time, the rebate becomes permanent.  If you fail to make the first 12 monthly payments on-time, however, a charge for the rebate amount (i.e., $17.50) will be added to the outstanding balance of the loan.

  • Direct Unsubsidized Loans

An unsubsidized loan is awarded regardless of need.  You are charged interest on the amount disbursed from the date of disbursement and you may either make – or defer – interest payments while you are in school and during the six-month grace period.  If you defer your interest payments, the accumulated interest will be capitalized, or added, to the principal of your loan when you enter repayment.  All future interest charges are then based on the new, higher principal amount.

Interest Rate:

All Direct Unsubsidized Loans have a fixed interest rate of 6.8% for the life of the loan, regardless of whether the student is an Undergraduate or Graduate student.

Loan Fee:

There is a 1.0% Origination fee on the Direct Unsubsidized Loan (if you borrow $3,500, you will actually receive $3,482.50 – or $17.50 less).  Once you enter repayment, if you make your first 12 monthly payments on time, the rebate becomes permanent.  If you fail to make the first 12 monthly payments on-time, however, a charge for the rebate amount (i.e., $17.50) will be added to the outstanding balance of the loan

PLUS Loan - The Direct PLUS Loan is a government-insured loan made to either graduate / doctoral students or to parents of dependent undergraduate students.  The PLUS loan is a non-need based loan, and eligibility is based on the credit history of the borrower.  The maximum amount borrowed cannot exceed the student’s cost of education minus any other financial assistance (including scholarships, work-study awards, and the Federal Stafford Loan).  PLUS Loans do not have an interest subsidy – interest begins accruing on the amount disbursed, from the date of disbursement.

Interest Rate:

The Direct PLUS Loan has a fixed interest rate of 7.9% for the life of the loan.

Loan Fee:

There is a 4% Origination fee on the PLUS Loan (if you borrow $10,000, you will actually receive $9,750 – or $250 less).  Once you enter repayment, if you make your first 12 monthly payments on time, the rebate becomes permanent.  If you fail to make the first 12 monthly payments on-time, however, a charge for the rebate amount (i.e., $250) will be added to the outstanding balance of the loan.


Parent (PLUS) for Parents of Dependent Undergraduate Students

Parents of dependent undergraduate students can take out a Parent PLUS Loan to supplement their student’s aid package.  Parents may choose to defer payments on a PLUS Loan until six months after the date the student ceases to be enrolled at least half-time and to pay the accruing interest monthly or quarterly, or to defer interest payments and allow interest to be capitalized quarterly.  A parent also has the option to choose not to defer payment, and can begin repaying both principal and interest while the student is in school.

Alternative Loan - Student loans available and should be used as a last resort. Interest rates and repayment benefits will vary depending on the loan chosen.