Federal Perkins Loan

The Federal Perkins Loan Program provides need-based, low-interest loans to students. If you qualify, you may borrow up to $12,000 during your four years of undergraduate study. In cases of very high need, this loan may be used in association with the Stafford Loan. The simple interest rate on these loans is 5%. Repayment begins nine months after you graduate (or terminate your studies).

Federal Stafford Student Loans

The Federal Stafford Student Loan Program provides low-interest loans from the federal government.

There are two types of Stafford loans: subsidized and unsubsidized. If you have a subsidized loan, the federal government pays the interest on the loan while you're enrolled. If you have an unsubsidized loan, you must pay the interest while you are in school, or you may choose to defer interest payments until graduation. However, if you defer paying the interest, it will be capitalized (that is, added to the loan amount). Capitalization costs you more in interest charges over the life of the loan, but it provides an alternative if it is impossible to pay the interest while you're enrolled. These loans have a variable interest rate and require that repayment begin six months after you graduate or terminate your studies.

If you qualify for subsidized loans, you may borrow up to $3,500 in the first year of enrollment, up to $4,500 in the second year, and up to $5,500 per year starting the junior year. If you're a dependent undergraduate, your total outstanding loans from this program may not exceed $23,000.

Unsubsidized loans are meant for independent students who need to supplement other loans and financial-aid resources. To qualify, you do not have to demonstrate financial need, but you must have a good credit record and receive a determination of eligibility (or ineligibility) for both the need-based Stafford Loan Program and the Pell Grant. Your program of study must lead to a degree or certification. You may borrow up to $4,000 each academic year for the first two years of undergraduate study and $5,000 per academic year for the remainder of your undergraduate program. The total amount is limited to $23,000.

Federal Plus Loans to Parents

Federal PLUS Loans are low-interest loans that are available to families of students enrolled at least half time. These loans do not require submission of the FAFSA or demonstration of financial need, but borrowers must complete a Financial Aid application. The interest rate is variable but capped by the government. Repayment begins within 45 days of the disbursement of the loan.

Additional Information

For complete information on all of these loans, visit the US Department of Education's Web site: studentaid.ed.gov.

When you're ready to apply for a federal loan, you can electronically sign the paper work with an e-Signature. The link will tell you more.

Already applied for a loan?

Check your loan's status:

College Foundation of North Carolina

ECMC Inc. (all lenders other than CFI)

You can find out who has your loan at studentclearinghouse.org