Federal Direct (Stafford) Loan Program
Direct Loans are low-interest loans for students and parents 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 can be either subsidized or unsubsidized.
A subsidized loan is awarded on the basis of financial need. You will not be charged any interest before you begin repayment or during authorized periods of deferment. The federal government "subsidizes" the interest during these periods. This loan must be repaid.
An unsubsidized loan is not awarded on the basis of need. You will be 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 our office 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 website. By signing the MPN, students are confirming their understanding that North Georgia may make new loans for the duration of their education (up to 10 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 (PLUS) Program
Direct Loans are low-interest loans for students and parents 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. PLUS Loans enable parents with good credit histories to borrow monies. These funds are designated to help pay the educational expenses of each child who is a dependent undergraduate student enrolled at least half-time (6 semester hours). 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, parents must complete an NGCSU application for the PLUS loan that can be obtained from our office or from the link below, and parent borrowers will also need to complete an electronic master promissory note (MPN) at the Direct Loan website.
Repayment usually begins within 60 days after the final loan disbursement for the period of enrollment for which you borrowed. Applications for the PLUS loan may be obtained from the Financial Aid Office or you may download the application and fax or mail it to the Financial aid Office. 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.
Federal Perkins Loans
The Federal Perkins Loan is a low-interest (5 percent) loan for students with exceptional financial need. North Georgia is the lender. The loan is made with government funds with a share contributed by North Georgia, so your payments are through the university.
Eligibility for this loan program will be determined on a first-come first-serve basis upon completion of the Free Application for Federal Student Aid. 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 (6 or more hours for undergraduate students and 5 or more hours for graduate students).