Loans

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 it to be released to the student. 

Many private lending institutions offer loans to students and families seeking assistance to meet expenses related to attendance at ECSU. We strongly recommend that students utilize their federal loans prior to seeking private loans. Other options that may be available are the Federal Parent Loan and the tuition payment plan.

ECSU has selected ElmOne as a one-stop resource for students seeking alternative loans. Our websites below provides an interactive lender list, which assists students in selecting a loan that best meets their needs. Please note that the list is not comprehensive. We do not endorse or promote specific alternative/private loan lenders and will not discriminate against students’ chosen lenders.

Undergraduate Lender List    Graduate Lender List

When choosing a private loan, our office offers these suggestions:

• Review the terms and conditions of loans carefully
• Only borrow what you need (visit the Cost and Aid webpage for more information)
• Check minimum/maximum annual loan limits
• Compare the combination of interest rate, fees, and repayment terms to determine the total amount repaid over time
• Some offer interest rates that are adjusted monthly, some quarterly, and some annually
• Check for deferred interest and/or principle while enrolled in school

A good reference site for more information about private/alternative loans is FinAid - The SmartStudent Guide to Financial Aid.

Note: The Office of Student Financial Aid and Scholarship reminds you that before you apply for a private loan to fund your education, please use your federal student loan eligible first. A private loan can carry an interest rate as high as 15%. Other options that may be available are the Federal Parent Loan and the tuition payment plan.

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.studentaid.gov before any loan funds will be disbursed to Elizabeth City State University.

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

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 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

Federal and non-federal 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 both federal and non-federal loans are contained in the promissory notes that borrowers must sign.

The Department of Education has several loan servicers.

Student Rights

I understand that I have a right to the following:

• Repayment Plans: You have the right to choose from several repayment plans, including income-driven plans.
• Grace Period: You have the right to a grace period, typically six months after leaving school, before you must begin repaying your loan.
• Repayment Period: You have the right to a repayment period of at least 10 years
• Access to Information: You have the right to clear and accurate information about your loan, including interest rates, fees, repayment terms, and conditions.
• Borrowing Limits: You have the right to know the limits on how much you can borrow each year and in total.
• Deferment and Forbearance: You have the right to request a deferment or forbearance to temporarily postpone or reduce your loan payments under certain conditions.
• Loan Forgiveness: You have the right to explore options for loan forgiveness, such as Public Service Loan Forgiveness (PSLF), if you meet the qualifications.
• Loan Servicer Information: You have the right to know who your loan servicer is and how to contact them for any loan-related questions.
• Loan cancellation: You have the right to have your loan obligation cancelled if you die or become total and permanently disabled

 

Student Responsibilities

 I understand I am responsible for:

• Repayment: You are responsible for repaying your loan, regardless of your financial situation or whether you complete your education.
• Understanding Terms: You are responsible for understanding the terms and conditions of your loan agreement before borrowing.
• Communication: You are responsible for communicating with your loan servicer about any changes to your contact information, enrollment status, or financial situation.
• Timely Payments: You are responsible for making timely payments according to your repayment plan. Late or missed payments can lead to delinquency or default, affecting your credit score.
• Budgeting: You are responsible for budgeting and planning for your loan repayment to ensure you can meet your obligations.
• Seeking Assistance: You are responsible for seeking assistance if you encounter difficulties in repaying your loan. Reach out to your loan servicer to discuss alternative repayment options.

 

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

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 the following information: