Student Loans - Full-Time MBA - UNC Kenan-Flagler Business School

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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: 6.8% fixed
  • Origination fee: 1.0%
  • 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

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

Application Process

In order to apply for Federal Direct loans, students should submit a Free Application for Federal Student Aid (FAFSA). The fastest way to submit a FAFSA application is online at www.fafsa.ed.gov. The priority deadline is March 1. While missing the deadline will not affect the type of funding you receive, it may affect processing time. Students receive financial aid notifications after all application requirements are complete. The notification process begins late in April.

Summer Loan Requirements

MAC Students MBA Students (Analytical Skills Workshop)
2012-2013 FAFSA 2012-2013 FAFSA
MAC Supplemental Application
for Student Loans
ASW Supplemental Application
for Student Loans

Academic Year Loan Requirements

All students must submit a 2013-2014 FAFSA (application available January 1, 2013) in order to borrow Federal Direct Loans for the academic year.

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: 7.9% fixed
  • Origination fee: 4%
  • 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: none, but deferred while student is enrolled (most loan servicers will defer repayment to match Direct Unsubsidized Loan grace period).
  • Repayment period: 10 years standard.

You can read more about Direct Graduate PLUS Loans 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 and normally based on either the Prime Rate or LIBOR.
  • Origination fee: Most lenders do not assess an origination fee of private education loans (i.e. loan amount disbursed equals 100% of the amount requested/ approved) but this may depend on a student's (and, if applicable co-borrower's) credit.
  • 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: 6-9 months, depending on loan product.
  • Repayment period: 10 years standard, but may vary depending on loan product.

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

How Students Receive Financial Aid

All financial aid funds transfer to the University Cashier's Office at the beginning of each term and students receive financial aid refunds around the first day of classes via direct deposit to their personal bank accounts. Students must meet all disbursement requirements in order for loans to transfer to UNC.

Tuition and fee charges are due before the beginning of each term. Students who receive financial aid can defer their charges. Instructions for deferment are included on the billing statement.

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 CitibankSallie Mae, and Wells Fargo.

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

UNC's Kenan-Flagler Business School offers a loan for international MBA students that does not require a co-signer through Coastal Federal Credit Union*. 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 $50,000 for each academic year (loan cannot be borrowed to cover expenses associated with summer enrollment prior to the academic year) and not more than $100,000 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 2%.
  • 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.

How Students Receive Financial Aid

All financial aid funds transfer to the University Cashier's Office at the beginning of each term and students receive financial aid refunds around the first day of classes via direct deposit to their personal bank accounts. Students must meet all disbursement requirements in order for loans to transfer to UNC.

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