Loans

 

Federal Direct Stafford Student Loans are low-interest loans for students to help pay for the cost of a student's college education. The lender is the U.S. Department of Education. Federal Stafford Loans have yearly limits.

There are two types of loans: Subsidized and Unsubsidized:

  • Subsidized Stafford Loan is a need based loan. Interest is paid by the Federal Government while you're enrolled in school. The Office of Student Financial Aid and Scholarships determines eligibility for this loan based on information reported the on the FAFSA.
  • Unsubsidized Stafford Loan is a non-need based loan. Interst is paid by the student while enrolled in school. The student does have the option to defer the interest until graduation or separates from the institution for any reason. If you choose to defer your interest, it will accumulate and capitalize onto your principal. The Office of Student Financial Aid and Scholarships determines eligibility for this loan based on information reported the on the FAFSA.

Federal Direct Parent Plus Loans  are offered to parents who have an acceptable credit history can borrow a PLUS Loan to pay the education expenses of a child who is a dependent student enrolled at least half time in an eligible program at an eligible school. The yearly limit on a PLUS Loan is equal to your cost of attendance minus any other financial aid you receive.  The school receives the money in at least two installments. If any loan money remains, your parents will receive the amount as a check or in cash, unless they authorize that it be released to the student. 

Private/Alternative Loans are offered by banks or lending institutions to help bridge the gap between the cost of education and the amount of financial aid received. These are loans that are not guaranteed by the federal government. Students and their families have the right to use a lender of their own choosing, will not be penalized in any way for exercising such an option and will receive assistance from the campus in processing the loan of the student's choice.

Cancellation

You have the right to cancel or reduce your loan within 14 days of  notification of disbursement. If you chose to cancel the loan after disbursement, you will be responsible for any unpaid balance due to the University. The University has the right to refuse cancellation of your loan after the 14 days unless the balance is paid in full.

 

Note: First time Direct Loan borrowers will need to complete both the entrance counseling and a master promissory note through www.studentloans.gov before any loan funds will be disbursed to Elizabeth City State University.

 Master Promissory Note (MPN)

The Master Promissory Note (MPN) is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the U.S. Department of Education. It also explains the terms and conditions of your loan.

The entire MPN process must be completed in a single session, so be sure you have enough time before you start. Please allow 3-5 business days for the financial aid office to receive notification.

Each MPN generally takes approximately 30 minutes to complete.

View Signing the Master Promissory Note video

 Entrance Counseling Requirement

Federal Direct Entrance Counseling is required for all first-time borrowers. The Counseling Session informs you of your rights and responsibilities as a borrower.

The entire counseling process must be completed in a single session. Most people complete counseling in 20-30 minutes.

View the Entrance Counseling video

 Exit Counseling Requirement

Exit counseling is required for all borrowers. The Counseling Session provides important information you need to prepare to repay your federal student loan(s). If you have received a subsidized, unsubsidized or PLUS loan under the Direct Loan Program, you must complete exit counseling each time you:

  • Drop below half-time enrollment  
  • Graduate          
  • Leave School/Withdraw

Please complete exit counseling and the Office of Student Financial Aid and Scholarships will receive your information electronically within 5 to 7 business days.

The entire counseling process must be completed in a single session. Most people complete counseling in 20-30 minutes.

View the Exit Counseling video

 Student Loan Repayment and Deferment Information

Federal and nonfederal student loans are funds that must be repaid, even if you experience financial difficulties.  Therefore, when deciding whether to borrow, you should examine your need for assistance and your future ability to repay. The precise terms of the both federal and nonfederal loans are contained in the promissory notes that borrowers must sign.

deferment is a period in which you are temporarily granted a reduction in your payment amount or allowed to stop making payments on your federal student loan for a specific amount of time.

Student Rights and Responsibilities for Loan Borrowing

 I understand that I have a right to the following:

  •  Written information on my loan obligations and information on my rights and responsibilities as a borrower.
  • A grace period and an explanation of what this
  • A disclosure statement, received before I begin to repay my loan, that includes information about interest rates, fees, the balance I owe, and the number of
  • Deferment of repayment or forbearance for certain defined periods, if I qualify and if I request deferment or
  • Prepayment of my loan in whole or in part anytime without an early-repayment
  • A copy of my Master Promissory Note (MPN) either before or at the time my loan is
  • Documentation that my loan is paid in
  • To cancel or reduce your loan within 14 days of notification of disbursement. If you chose to cancel the loan after disbursement, you will be responsible for any unpaid balance due to the University. The University has the right to refuse cancellation of your loan after the 14 days unless the balance is paid in

 I understand I am responsible for:

  •  Completing Exit Counseling before I leave school or drop below half-time
  • Repaying my loan even if I do not complete my academic program, I am dissatisfied with the education I received, or I am unable to find employment after I
  • Notifying the Direct Loan Servicing Center if I have:
    • Move or change my address
    • Change my name
    • Withdraw from school or drop below half-time enrollment
    • Transfer to another school
    • Fail to enroll or reenroll in school for the period for which the loan was intended
    • Change my expected graduation date or
    • Graduated
  • Making monthly payments on my loan after my grace period ends, unless I have a deferment or a forbearance and repayment options will be provided during Exit
  • Notifying the Direct Loan Servicing Center of anything that might alter my eligibility for an existing deferment or

National Student Loan Data Services (NSLDS) Disclosure:

Loan Information will be submitted to the National Student Loan Data Services (NSLDS) and will be accessible to authorized agencies, lenders, and institutions.

FSA Student Loan Ombudsman contact information

The Ombudsman Group is a neutral, informal, and confidential resource to help resolve disputes about your federal student loans. In order to reach the Ombudsman Group please use following information:

Via on-line assistance: http://studentaid.gov/repay-loans/disputes/prepare  

Via telephone:  877-557-2575

Via fax:           202-275-0549

Via mail:      U. S. Department of Education
                      FSA Ombudsman Group
                      830 First Street, N. E., Mail Stop 5144
                      Washington, D.C. 20202-5144

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