Unsubsidized Stafford Loan
Student borrowers with no financial need are eligible for Unsubsidized Stafford Loans. Interest on these loans is not paid by the federal government and is the responsibility of the student at all times. Borrowers can either pay the interest while they are enrolled or have it added to the loan principal. Delaying the interest payment by adding to principal, however, will increase the cost of the loan. Repayment of the principal begins six months after the student is no longer enrolled.
The fixed interest rate is 6.8% for Unsubsidized Stafford Loans made on or after July 1, 2006.
To borrow either a Subsidized or Unsubsidized Stafford Loan from College Foundation, Inc. (CFI), you must meet federal guidelines for the loan and have a North Carolina Connection. You establish your North Carolina Connection if you are one of the following:
- A resident of North Carolina; or
- A previous CFI borrower; or
- A current or former participant or beneficiary in the
North Carolina College Savings and Investment Program (provided
that, the savings account was not closed due to a rollover to
another qualified tuition program); or
- Attending or have attended a North Carolina college or
university eligible to participate in the Federal Family Education
Loan Program.
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