Consolidation Loans Ombudsman Information Students who need help paying for college should check out several different kinds of loans. Loans must be repaid. For parents seeking assistance in paying for their child's education, see information about our Federal PLUS Loans or our state-sponsored savings program, College Vision Fund . The Federal Stafford Loan is the most widely used student loan program, available to students who have financial need as the Subsidized Stafford Loan and to students who do not have financial need as the Unsubsidized Stafford Loan.
Federal guidelines contain the maximum interest rates and repayment terms for borrowers.
However, we offer special, lower rates through our NC Advantage Program . Based on financial need, the federal government pays the interest for the student while the student is enrolled in college at least half-time and for six months after the student is no longer enrolled. After the six-month period, interest and repayment begin on the loan. Repayment of the principal begins six months after the student is no longer enrolled. The Federal Consolidation Loan Program was established to help people who borrowed from multiple lenders or had to borrow large sums of money to finance their college educations and then struggle to make the required monthly payments in the early parts of their careers when their income is the lowest.