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 Stafford Loans
The Federal Stafford 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). Federal Stafford Loans cannot exceed a combined total of $20,500 per academic year. The two types of Federal Stafford Loans are:
Subsidized Stafford
- Annual maximum $8,500.
- Does not accrue interest until repayment begins.
- Repayment begins 6 months after graduation.
- Fixed interest rate of 6.8%.
- During repayment, some lenders offer interest rate reductions related to making on-time payments, auto-draft of payments, and/or electronic statements.
Unsubsidized Stafford
- Annual maximum cannot exceed $20,500 when combined with Subsidized Stafford.
- Accrues interest upon disbursement. Payment of accrued interest is not required, but is suggested.
- Repayment begins 6 months after graduation.
- Fixed interest rate of 6.8%.
- During repayment, some lenders offer interest rate reductions related to making on-time payments, auto-draft of payments, and/or electronic statements.
You can read more about Stafford Loans online. UNC Chapel Hill is not a Direct Lending institution.
Application Process
In order to apply for Federal Stafford 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. Paper copies of the FAFSA are available at any university, community college, or public library. 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
Academic Year Loan Requirements
All students must submit a 2009-2010 FAFSA (application available January 1, 2009) in order to borrow Federal Stafford Loans for the academic year.
Additional Student Loans
Students can choose to borrow additional student loan funds to supplement the Federal Stafford Loan program. A student’s total financial aid (including: scholarships, fellowships, and all education loans) cannot exceed the total cost of attendance for the academic year. The two loan programs used by MBA students are the Federal Graduate/Professional 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 Graduate/Professional PLUS Loan
Most Stafford Loan lenders offer the Federal Graduate/Professional PLUS Loan program.
- Credit requirements: Generally speaking, most lenders require a good credit history or no credit history (no delinquent accounts or bankruptcy on credit report).
- Interest rate: 8.5% fixed
- Origination fee: 3% (i.e. loan amount disbursed equals 97% of the amount requested/approved).
- Repayment period: Up to 10 years and begins immediately after student graduates or separates from the University.
- Interest rate reductions are often applied during repayment and are related to making on-time payments, auto-draft of payments and/or electronic statements.
Private Education Loans
Some Stafford Loan lenders offer some type of private education loan program.
- 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.
- Interest rate: Variable 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.
- Repayment period: Up to 10 years and begins 6 months after a student graduates or separates from the University.
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. Since the Cashier's Office is on main campus, it is often inconvenient to go there in order to pick up a refund check. Refunds are sent to students' bank accounts if they complete a Direct Deposit Consent Form[PDF:48KB]. In order to assure timely processing of this request, students should print the form and return it to the University Cashier's Office. 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.
The North Carolina EXTRA MBA Loan
MAC students are eligible to apply
CFI cannot confirm funding availability for the EXTRA MBA Loan Program for the 2010-2011 academic year at this time. This will be finalized in January/February 2010.
The Kenan-Flagler Business School, through a partnership with College Foundation Inc. (CFI), offers the EXTRA MBA Loan for international students. The EXTRA MBA Loan is available to students who are not eligible to borrow Federal Stafford Loans. Students should direct all questions about the EXTRA MBA Loan to
.
Requirements
- You are accepted in UNC Chapel Hill's Kenan-Flagler Business School MBA, EMBA or MAC Program. (Students must be enrolled for loan funds to disburse)
- You are at least 17 years old.
- You have never defaulted on a student loan.
- You can provide 2 valid references upon application for the loan.
(References are not co-borrowers. They are people who will always be able to contact you. These people are not financially obligated to this loan but only serve as contacts for the lender in case a borrower does not make repayment in a timely fashion.)
- No cosigner is required.
Terms and Conditions
- The minimum loan amount a student can borrow is $200.
- The maximum loan amount covers the cost of tuition and mandatory fees.
- An origination and guaranty fee equal to 8.5% of the approved loan amount is deducted from each loan disbursement.
- Six-month grace period before starting repayment after graduation. Unpaid, accrued interest will be added to the principal balance of the loan at the beginning of the repayment period
- There is no penalty for early repayment and no repayment fees.
- The interest rate for loans first disbursed on or after July 1, 2009 will always be 3-month LIBOR + 3% (with a minimum rate of 7%) and is adjusted quarterly. The rate is determined on the day that is two business days prior to the beginning of the applicable quarter.
- Students do not make payments while enrolled in classes. At the beginning of repayment, all unpaid, accrued interest is added to the principal balance of the loan.
- All EXTRA MBA Loans have a standard repayment period of 120 months. Borrowers may request to extend this period to no more than 180 months. During repayment, the minimum monthly payment amount is $50 on all EXTRA MBA Loans, but the actual monthly payment is based on total loan amount borrowed.
- Once the repayment period starts, there is a .25% interest-rate reduction for monthly payments by automatic withdrawal and an additional .50% interest-rate reduction if you make 48 consecutive on-time payments during the first 60 months of repayment.
Application Requirements
- In order to apply for the EXTRA MBA Loan, students must submit a printed loan application to CFI. The EXTRA MBA Loan application is emailed, in PDF format, directly to all international students once loan processing begins (normally in April of each year). All loan applications must be printed and then sent to CFI for processing.
- 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. Since the Cashier's Office is on main campus, it is often inconvenient to go there in order to pick up a refund check. Refunds are sent to students' bank accounts if they complete a Direct Deposit Consent Form [PDF:48KB]. In order to assure timely processing of this request, students should print the form and return it to the University Cashier's Office. 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.
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Full-Time MBA
