Loans can be a helpful resource when paying for college as long as you keep your borrowing to a minimum. Being informed, knowing what to look for when choosing a loan, and understanding the terms for repayment are all very important. So before you apply for a loan, let’s go over some things you should consider…
Types of Loans
There are three different sources of educational loans – Federal government, State government, and Private lenders. All three offer loans for students and parents.
A student loan is a debt in the student’s name, for which the student is responsible for repaying. Because undergraduate students don’t have as much credit history as their parents, the interest rate for private student loans is usually higher for students than for parents. A student loan with a co-signer who has good credit will lower the interest rate.
Parent loans are not in the student’s name, they are in the parent’s name only. The student does not have any responsibility for repaying a parent loan.
Loan Limits
Often, especially with federal loans, there are annual and aggregate limits on the amount you may borrow. An annual limit is the most you can borrow each year while an aggregate limit is the most you can borrow over a lifetime.
Cost of borrowing
There are few different factors that contribute to the cost of borrowing – interest rate, origination fee, when interest begins to accrue, and how long it takes you to repay your loan.
Interest Rate is the rate you are charged for borrowing and is usually represented as an Annual Percentage Rate such as 5% APR. Interest rates can be fixed or variable. Meaning that the rate will always stay the same (fixed) or it can change over time depending on the index used (variable).
Origination Fee is an additional cost that can be charged by the lender as a way to recoup some of the lender’s processing costs. It’s a fee that is charged upfront and deducted from the amount disbursed.
Interest accrual refers to when the lender begins charging interest. Depending on the type of loan, interest accrual will either begin on the day of disbursement (unsubsidized loan) or when the loan enters repayment (subsidized loan), usually 6 months after you leave school.
Repayment
Whenever a borrower’s enrollment drops below half-time, their loans will enter repayment. The repayment begins with a grace period, usually 6 months. During the grace period, no payment is required.
Most loans have a 10-year repayment period. Only Federal loans offer lower monthly payments based on your income.
Loan Forgiveness
The Federal Direct Loans and the NC Forgivable Loan offer debt forgiveness for borrowers who meet certain work requirements. For more information about these programs please refer to their websites.
Studentaid.gov
Federal Parent Plus Loan
NC Forgivable Educational Loan
NC Assist Loan Program
federal Student loans
| Interest Rate/ Origination Fee | Yearly Borrowing Limits | Eligibility | Payment Plans & Forgiveness | |
|---|---|---|---|---|
| Direct Subsidized | Rate: 6.53% Orig Fee: 1.057% | Varies from $3,500-$5,500 |
• Must complete a FAFSA |
• Payment Plans (Y) |
| Direct Unsubsidized | Rate: 6.53% Orig Fee: 1.057% | Varies from $2,000-$7,500 (Independent students may be eligible to borrow more) | • Must complete a FAFSA • Must demonstrate financial need • Interest is not charged while in school | • Payment Plans (Y) • Forgiveness Options (Y) |
NC Assist Student loans
| Interest Rate/ Origination Fee | Yearly Borrowing Limits | Eligibility | Payment Plans & Forgiveness | |
|---|---|---|---|---|
| NC Assist | Rate: 6.95% Orig Fee: 0% | Up to cost of attendance | Must be credit-worthy and have the required credit score or have a co-signer who meets the credit requirements | • Payment Plans (N) • Forgiveness Options (N) |
| NC Forgivable Educational Loan | Rate: 8% Orig Fee: 0% | Up to $7,000 | • Must meet certain eligibility requirements and approval from NCSEAA • After graduation, if the work requirement is fulfilled, the loan is canceled. If the work requirement is not fulfilled, the loan goes into repayment. • Application opens December-January | • Payment Plans (N) • Forgiveness Options (N) |
parent plus loan
| Interest Rate/ Origination Fee | Yearly Borrowing Limits | Eligibility | Payment Plans & Forgiveness | |
|---|---|---|---|---|
| Parent Plus | Rate: 8.05% Orig Fee: 4.228% | Up to cost of attendance | Cannot have an adverse credit history | NA |
NC parent loan
| Interest Rate/ Origination Fee | Yearly Borrowing Limits | Eligibility | Payment Plans & Forgiveness | |
|---|---|---|---|---|
| NC Assist | Rate: 6.25% Orig Fee: 0% | Up to cost of attendance | Must be credit-worthy and have the minimum required credit score | NA |
PRIVATE LOANS
| Interest Rate/ Origination Fee | Yearly Borrowing Limits | Eligibility | Payment Plans & Forgiveness | |
|---|---|---|---|---|
| Private Loans | • Varies by lender & based on credit score • Orig Fee: 0% | Usually up to the cost of attendance | Refer to our recommended lender list for more information. | NA |
Recommended Lender List
In an effort to make the lender selection process easier for our students and parents, and to ensure that they are choosing reliable and stable lenders, Watts College of Nursing publishes a list of “Recommended Private Lenders.”
In making our selection, we carefully review the loan products of the lenders, their financial stability, customer service, and the efficiency by which they process their loans. You are not required to select a lender from this list, and if you wish to use a different lender, we will process your loan in the same manner without delay.
The College has also established a set of publicly available principles and policies that govern our educational lending practices for undergraduate, graduate, and professional students
To find out which private loan may be best for you for studying at Watts College of Nursing, we encourage you to use the Elm Select lender comparison tool.
Students - Elm Select Lender Comparison Tool (Students)
Parents - Elm Select Lender Comparison Tool (Parents)
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Non-Tax Filer Statement
Financial Aid Asset Verification Form
Identity & Statement of Educational Purpose
Policies and Procedures
Student Lending Policies and Procedures
Satisfactory Academic Progress (SAP) Policy
Watts College of Nursing does not discriminate in the educational program or activities of the college on the basis of race, color, religion, national origin, disability, veteran status, sexual orientation, gender identity, gender expression, sex, genetic information, or age.