UNC Kenan-Flagler Business School

Shaping Leaders, Driving Results

UNC Kenan-Flagler Business School

Student Loans

Financial assistance options available through the University and UNC Kenan-Flagler:

You may find other options from the Graduate Management Admission Council (GMAC).

Contact Information

Contact with questions about financial aid.

Phone: 919.962.9096
Fax: 919.962.2927
CB# 3490, McColl Building
Chapel Hill, NC 27599

Federal Direct Unsubsidized Loans

The Federal Direct Loan program is available to all U.S. Citizens and Permanent Residents who meet basic Federal requirements (i.e. student has never defaulted on a Federal loan and/or is not currently involved in filing bankruptcy). The terms and conditions of the Federal Direct Unsubsidized Loan are:

  • Annual maximum: $20,500
  • Interest rate: 6.21% fixed*
  • Origination fee: 1.072%
  • Interest accrues interest upon disbursement. Payment of accrued interest is not required, but is suggested. Unpaid, accrued interest is capitalized into the principal loan amount when repayment begins.
  • Grace period: 6 months
  • Repayment period: 10 years standard, but up to 25 years if total Unsubsidized debt is more than $30,000.

*The interest rate is fixed for the life of the loan and applies to loans disbursed after July 1, 2014 and before July 1, 2015. The interest rate for loans disbursed after July 1, 2015 will be determined in the spring of 2015.

You can read more about the Direct Unsubsidized Loan Program online.

Additional Student Loans

Students can choose to borrow additional student loan funds to supplement the Federal Direct Unsubsidized Loan. A student's total financial aid (including: scholarships, fellowships, and all education loans) cannot exceed the total cost of attendance (the financial aid budget) for the academic year. The two loan programs used by MBA and MAC students are the Federal Direct Graduate PLUS Loan and private education loans. Note that these loans are approved based on a student's credit. Each loan considers credit in a specific way (see below for loan details).

Federal Direct Graduate PLUS Loan

  • Annual maximum: estimated financial aid budget minus other financial aid.
  • Interest rate: 7.21% fixed*
  • Origination fee: 4.288%
  • Interest accrues upon disbursement. Payment of accrued interest is not required, but is suggested. Unpaid, accrued interest is capitalized into the principal loan amount when repayment begins.
  • Credit requirements: A good credit history or no credit history (no delinquent accounts or bankruptcy on credit report).
  • Grace period: 6 months
  • Repayment period: 10 years standard, but up to 25 years if total Unsubsidized debt is more than $30,000.

*The interest rate is fixed for the life of the loan and applies to loans disbursed after July 1, 2014 and before July 1, 2015. The interest rate for loans disbursed after July 1, 2015 will be determined in the spring of 2015.

You can read more about Direct Graduate PLUS Loan Program online. Each student should review all of her/his options to determine the best loan product for her/him.

Private Education Loans

  • Annual maximum: estimated financial aid budget minus other financial aid.
  • Interest rate: Variable or fixed, based on either the Prime Rate or LIBOR.
  • Origination fee: Varies.
  • Interest accrues upon disbursement. Payment of accrued interest typically is not required, but is suggested. Typically unpaid, accrued interest is capitalized into the principal loan amount when repayment begins.
  • Credit requirements: Students may be required to have a minimum credit score to be approved for the loan funding without a co-borrower. Students with credit scores below the required minimum may be asked to provide a co-borrower for loan approval.
  • Grace period: 6 to 9 months
  • Repayment period: up to 25 years standard, depending on lender.

UNC Chapel Hill does not have a preferred lender list for private education loans. In the past , MBA and MAC students have borrowed private education loans most frequently through Discover, Sallie Mae, SunTrust, and Wells Fargo. Each student should review all of her/his options to determine the best loan product for her/him.


International Student Loan Options

Private Education Loans (for students with a U.S. co-signer)

International students who have a credit-worthy U.S. citizen co-signer or U.S. permanent resident co-signer may also be eligible for private education loans through lenders such as Sallie Mae, Wells Fargo, Discover (with a US Social Security Number), and CharterOne.

Private Education Loan (for students without a U.S. co-signer)

For pre-selected international MBA students, UNC’s Kenan-Flagler Business School offers a loan through Coastal Federal Credit Union* that does not require a U.S. citizen co-signer. The loan is not available to all international MBA students. It is a benefit offered to the most competitive international applicants admitted each year. The determination of loan access is made after the admission application is reviewed. Please note that MAC students are not eligible to borrow this loan. Below are terms and conditions of the loan program.

  • Maximum loan limit cannot exceed the $45,000 for each academic year (loan cannot be borrowed to cover expenses associated with summer enrollment prior to the academic year) and not more than $90,000 total for the MBA Program.
  • Minimum loan amount is $5,000.
  • Minimum monthly payment amount is $100 for standard repayment.
  • Prime Rate + 5.00% (annual adjustment) with origination fee of 3%.
  • Unpaid interest that accrues while the student is enrolled in school will be capitalized (added to the principal loan amount) at the time of repayment.
  • Repayment begins six months after graduation or separation from the University. There is never a penalty for prepayment of loans.
  • Possible interest rate reduction of 0.125% if automated payments are made during repayment period.

*In compliance with the Office of Foreign Assets Control (OFAC), Coastal Federal Credit Union may not grant loans to students from countries with comprehensive sanction programs.  As of December 2012, comprehensive sanctioned countries include Cuba, Iran, Northern Sudan, and Syria.  Other countries may have selective sanctions that could affect Coastal’s ability to grant a loan to students from that country. More information on OFAC sanctioned countries can be found here: http://www.treasury.gov/resource-center/sanctions/Programs/Pages/Programs.aspx

The Office of Foreign Assets Control (OFAC) is an agency of the United States Department of the Treasury under the auspices of the Under Secretary of the Treasury for Terrorism and Financial Intelligence.  OFAC administers and enforces economic and trade sanctions based on U.S. foreign policy and national security goals against targeted foreign state, organizations, and individuals.

Education Loans from the Student's Country of Citizenship

All students should explore loan options offered in their home countries. These programs will have specific requirements for the borrower as outlined by the lender, bank, or government so the student should contact the lending agency directly for details on each program. Below is a list of possible programs, but this is in no way a comprehensive list.

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