Federal Direct Loans*

Many students who think they are not eligible for aid actually ARE eligible for Federal Subsidized and/or Unsubsidized Loans.
                           It isn't "free money" but it helps!
Federal Direct Loans allow students to borrow federal funds for education directly from the government.  The subsidized amount that may be borrowed depends on the student's need and year in school, as well as limits set by the U.S. Department of Education.  The interest rate for new  loans first disbursed between July 1, 2010 and June 30, 2011 is fixed at 4.50% for subsidized loans and 6.80% for unsubsidized loans.  The minimum monthly payment is $50 (subject to change) and begins 6 months after the student ceases to be enrolled at least half-time (6 credit hours).  Eligibility for these loans depends upon the student's previous federal loan balance and current financial need. 
There are two types of Direct Loans that Carolinas College offers: subsidized and unsubsidized.  With a subsidized Stafford Loan, the government agrees to pay any interest accrued on the loan while the student is enrolled in school.  With an unsubsidized Stafford Loan, the student is responsible for the interest accrued while they are in school.
How to Apply for Federal Direct Stafford Loan Funds
  1. Complete the FAFSA for the appropriate academic year.  Carolina College's academic year begins in Fall and ends in Summer.
  2. Review your award letter (provided by the Carolinas College Financial Aid Office) and accept, decline or reduce your awards as necessary. 
  3. Sign, date, and return the award letter to the Carolinas College  Financial Aid Office.
  4. Go to www.studentloans.gov and enter the information as directed to sign on.  Once logged on, complete entrance counseling and your electronic Master Promissory Note (eMPN).  Carolinas College is listed as Charlotte Mecklenburg Hospital Authority.  
*Please note:  Students must be enrolled in at least 6 credit hours each semester to receive Federal Direct Loans.

PLUS Loans

A PLUS loan is often referred to as a "Parent Loan"
Federal Direct Parent Loans for Undergraduate Students allow parents of dependent students enrolled at least half-time to borrow directly from the federal government.  For loans first disbursed between July 1, 2010 and June 30, 2011, the fixed interest rate is 7.90%.  The loan is not based on need, and the amount of the PLUS loan may not exceed the student's cost of attendance (as determined by the college) minus the student's financial assistance.  Repayment of the principal (unless deferred) and interest begins 60 days after the loan is disbursed.

Last modified: Thursday, July 8, 2010, 9:54 AM