School loan options for grad students help bridge the gap between aid and the cost of attendance

This article was written for our sponsor, NC Assist Loans.

The cost of tuition is rising.

In fact, tuition prices have more than doubled since 1986 and, while they held steady through the first couple of years of the pandemic, inflation is causing some universities to increase their cost, according to Inside Higher Ed.

With master’s degree programs costing anywhere from $30,000 to $120,000, according to the Education Data Initiative, many graduate students are turning to loans to lighten the financial load.

“A student loan is a great option to fill the financial gap between the cost of attendance at an institution and financial aid awarded to a student,” said Amy Denton, a regional representative for the College Foundation of North Carolina. “It’s so rare for students to have 100% of their college costs covered by other sources of financial aid, grants and scholarships. It affords students the opportunity to attend college to fulfill their educational goals when they otherwise may not be able to attend.”

Luckily, there are federal loans, private loans and loans available through local nonprofit lenders like the College Foundation of North Carolina’s NC Assist Loan program that can help offset costs for grad students of all ages.

The NC Assist Loan in particular can help grad students with a North Carolina connection.

“The loan is available to students who are North Carolina residents, as well as students who reside outside of North Carolina but are attending an eligible North Carolina school,” said Denton.

Other qualifications include the following:

• Be at least 17.
• Be enrolled or accepted for enrollment at least half-time at an eligible non-profit Title IV institution in a degree-seeking program.
• Be credit-worthy and have the required credit score (currently 700) or have a co-signer who meets the credit requirements.
• Be a U.S. citizen or eligible non-citizen.
• Meet other federal student eligibility requirements as certified by the student's school.

Additionally, grad students can qualify for more than undergraduate students, since they are not required to include their parents’ financial information.

How to apply

The process of applying for an NC Assist Loan is outlined on the organization’s website. After answering the eligibility questions, grad students will then fill out an application, their school will certify eligibility, and the loan will be processed.

NC Assist also offers support throughout the process, in case there are any issues.

“Being the state-based nonprofit lender, we’re committed to providing personal customer service via our call center right here in Raleigh,” said Denton.

Grad students can apply for the cost of attendance minus any other financial aid they’ve received. Each university calculates a cost of attendance per year for undergraduates, graduates, residents and non-residents. This total includes the average cost of books, supplies, room and board, transportation and personal expenses like food and toiletries. The loan may be used for any of these expenses.

There are some restrictions, however.

“Student loans cannot be used for nonessential educational expenses or anything for personal gain like personal travel, vacations, entertainment, electronics beyond a computer, mortgage or auto loans or credit card debt,” said Denton.

Repayment

Students who attend school less than half time, which is usually six credit hours, must begin paying back their loans right away. Otherwise, they have a six-month grace period after graduation before they must begin paying back their NC Assist Loans. This gives them extra time to get settled and find a job.

From there, they have a 10-year payment period with a minimum monthly payment of $50. Unlike some other loan options, there are no fees or penalties for paying the loan off early.

“The NC Student Assist Loan is a viable option for graduate students,” said Denton. “It has no application or origination fees, unlike federal student loans, and the interest rate is comparable to federal rates. Students can borrow up to their college’s cost of attendance minus any other financial aid they’ve received to fulfill that financial obligation to the college.”

This article was written for our sponsor, NC Assist Loans.