Federal Direct (Stafford) Loan Program
Direct Loans are low-interest loans for students to help pay for the costs of student's education after high school. The lender is the US Department of Education rather than a bank or other financial institution. Eligibility for this loan program will be determined upon completion of the Free Application for Federal Student Aid (FAFSA). Detailed information can be found at The Student Guide.
Federal Stafford Loans are made in the student's name and are unsubsidized for graduate students.
For an unsubsidized loan, you are charged interest from the time the loan is disbursed until it is paid in full. If you allow the interest to accumulate, it will be capitalized-that is, the interest will be added to the principal amount of your loan and additional interest will be based upon the higher amount. This will increase the amount you have to repay.
Under federal law, you must complete a Loan Entrance Counseling session before funds may be disbursed. It is important that you know and understand your rights and responsibilities as a student borrower. Please contact Office of Student Financial Aid if you have any questions.
Further, you must complete a Master Promissory Note (MPN). In most cases, you will sign only one promissory note that will be used for all loans at North Georgia. Students may complete the MPN electronically at the Direct Loans web site. By signing the MPN, students are confirming their understanding that North Georgia may make new loans for the duration of their education (up to ten years), without having to sign another MPN. Each academic year, North Georgia will disburse loan proceeds to student's accounts as indicated on the on-line Award Letter viewed from the North Georgia Banner Student Information System.
Federal Direct Loan Graduate (PLUS) Program
Direct Loans are low-interest loans for students to help pay for the costs of student's education. The lender is the US Department of Education rather than a bank or other financial institution. PLUS Loans enable graduate students with good credit histories to borrow money. These funds are designated to help pay the educational expenses. The yearly limit on a PLUS loan is equal to your cost of attendance minus any other financial aid you receive.
In order to receive the PLUS loan, need to complete an electronic master promissory note (MPN) at the Direct Loan web site.
Students must have completed the Free Application for Federal Student Aid for eligibility to be determined. Detailed information may be found at the Student Guide.
Disbursement of Loan Funds
For all loan funds, you must be enrolled at least half-time (five or more hours for graduate students).