Federal and North Carolina Student Aid Programs
In order to be considered for aid awarded through the Federal Student Aid program, students must first file the Free Application for Federal Student Aid (FAFSA). The FAFSA must be completed for each year a student is enrolled. The results of the FAFSA are used to determine a student’s eligibility for each aid program. To be considered for the North Carolina grant programs, students must also have their residency confirmed through the Residency Determination Service.
The Pell Grant is the largest federal grant program offered to Davidson-Davie students and is designed to assist those from low-income households. To qualify for a Pell Grant, students must be enrolled in an eligible academic program, have not yet earned a bachelor’s degree, and must demonstrate financial need through the FAFSA. The amount awarded will vary each year depending on the results of the FAFSA, a student’s enrollment each semester, and federal funding.
A Federal Supplemental Educational Opportunity Grant (SEOG) is awarded to students with extremely high financial need. Funding for the grant is extremely limited with priority given to students who are eligible for the Federal Pell Grant. In order to be considered, students must file the FAFSA each year of their enrollment at Davidson-Davie Community College.
The NC Community College Grant and the NC Education Lottery Scholarship have been combined into the Next NC Scholarship. The Next NC Scholarship works with federal aid to provide a guaranteed amount of financial assistance with additional state funding provided to students with exceptional need.
Students enrolling at a North Carolina Community College with an Adjusted Gross Income (AGI) of $80,000 or less and an Expected Family Contribution (EFC) of 7,500 or less, as reported on the FAFSA, are guaranteed at least $2,800 from combined federal and state aid.
Eligibility
- Be a North Carolina resident as defined by North Carolina Residency Manual
- Enroll for at least 6 credit hours
- Be admitted, enrolled, and classified as an undergraduate student in matriculated status in a degree, certificate or diploma program at one of the 16 institutions of The University of North Carolina or at a North Carolina Community College
Application Requirements
Applicants must complete the Free Application for Federal Student Aid (FAFSA) listing a UNC institution or North Carolina Community College.
Other Information
Consideration for funding is automatic once the FAFSA is filed. The FAFSA priority filing date is August 15 for North Carolina Community Colleges. Applicants completing the FAFSA after these dates may be denied if insufficient funds are available.
The Longleaf Commitment is a grant program for 2021 North Carolina high school graduates who enrolled at a NC community colleges starting in the Fall 2021 or Spring 2022 semesters. High school students may be eligible to receive this grant for tuition and fees toward a degree or to attain transfer credit. Full-time eligible students are guaranteed to receive $700 to $2,800 per year, for a total of two years. Less than full-time students may receive a partial award. The Longleaf Commitment Grant Program ends at the conclusion of the 2023 spring semester.
Applicant must meet the following eligibility requirements:
- Be a December 2020 or 2021 NC high school graduate
- Be a North Carolina resident according to the NC Residency Determination Service
- Be a first-time college student (Career & College Promise (CCP) and Early/Middle College High School students are not eligible)
- Enroll in a curriculum program during the Fall 2022 semester
- Enroll in at least 6 credit hours per semester
- Complete the Free Application for Federal Student Aid (FAFSA) for 2022-23 and subsequent years
- Have an Expected Family Contribution (EFC) from $0 – $15,000
- Renew FAFSA for the 2022-23 academic year and meet the Satisfactory Academic Progress requirements of the college
The Longleaf Commitment is a grant program for 2022 North Carolina high school graduates who will a NC community colleges starting in the Fall 2022 semester. High school students may be eligible to receive this grant – not a loan – for tuition and fees toward a degree or to attain transfer credit. Full-time eligible students are guaranteed to receive $700 to $2,800 per year, for a total of two years. Less than full-time students may receive a partial award. The Longleaf Commitment Grant Program ends at the conclusion of the 2024 spring semester.
Applicant must meet the following eligibility requirements:
- Be a December 2021 or 2022 NC high school graduate
- Be a North Carolina resident according to the NC Residency Determination Service
- Be a first-time college student (Career & College Promise (CCP) and Early/Middle College High School students are not eligible)
- Enroll in a curriculum program during the Fall 2022 semester
- Enroll in at least 6 credit hours per semester
- Complete the Free Application for Federal Student Aid (FAFSA) for 2022-23 and subsequent years
- Have an Expected Family Contribution (EFC) from $0 – $15,000
- Renew FAFSA for the 2023-24 academic year and meet the Satisfactory Academic Progress requirements of the college
Federal Loan Programs
Federal Direct Loans
Federal Direct Loans are available to Davidson-Davie students who complete the FAFSA and are enrolled at least half-time in an eligible academic program. Half-time at Davidson-Davie is defined as six credit hours each semester. Federal Direct Loans can be subsidized and/or unsubsidized. These loans do not require a credit check and currently carry an origination fee of 1.057%. The origination fee is deducted from the loan amount prior to its disbursal to the college. The Federal Direct Loan is borrowed directly from the U.S. Department of Education as part of the William D. Ford Direct Loan Program.
There are two types of Federal Direct Loans, subsidized and unsubsidized:
Federal Direct Subsidized Loan
Direct Subsidized Loans are awarded on the basis of financial need as determined by the FAFSA and Davidson-Davie. For students who enrolled half-time or more, any interest that accrues while they are in school and during their six month grace period is paid for them by the federal government. Interest will begin to accrue once the loans enter repayment.
Federal Direct Unsubsidized Loan
Direct Unsubsidized Loans are not awarded on the basis of financial need. Unlike a subsidized loan, interest will begin to accrue immediately from the time the loan is disbursed to Davidson-Davie until it is repaid in full. Students are permitted the option of paying the interest typically once every three months or deferring interest payments until they enter repayment. If the student allows the interest to accrue while they are in school or during other periods of nonpayment, the interest that has accumulated during that time will be added to their loan when they enter repayment. This is also known as capitalization.
Depending on a student’s financial need, their Federal Direct Loan could be a combination of both subsidized and unsubsidized, or completely unsubsidized.
Dependent Students |
||
| Academic Level | Direct Loan Amount | |
| Year 1: 0 – 30 credits earned | $5,500 (Up to $3,500 may be subsidized) | |
| Year 2: 31 or more credits earned | $6,500 (Up to $4,500 may be subsidized) | |
Independent Students |
||
| Academic Level | Direct Loan Amount | |
| Year 1: 0 – 30 credits earned | $9,500 (Up to $3,500 may be subsidized) | |
| Year 2: 31 or more credits earned | $10,500 (Up to $4,500 may be subsidized) | |
Independent Students |
||
| Dependency Status | Maximum Subsidized | Total Direct Loan |
| Dependent Students | $23,000 | $31,000 |
| Independent Students | $23,000 | $57,500 |
A student’s dependency status is determined by the FAFSA. The loan amount offered to a student in their Financial Aid Offer will vary depending upon the results of their FAFSA, the Cost of Attendance, and other financial aid offered. Loan amounts may not exceed the Cost of Attendance when combined with other financial aid
Federal Direct Loan Interest Rate
The interest rate for any loans borrowed for the 2023 – 2024 academic year (July 1, 2023 – June 30, 2024) is fixed at 5.50% for the life of the loan.
Repayment
Repayment begins six months after a student graduates, leaves school, or drops below half-time enrollment. This period of time is called a grace period. Students are granted one grace period. Students may have longer than six months if they are on active duty in the military. There are a number of different repayment plans
| Repayment Plan | Eligible Borrowers | Monthly Payment and Time Frame |
|---|---|---|
| Standard Repayment Plan | All Federal Direct Loan borrowers | Payments are a fixed monthly amount that ensures the loans are paid off within 10 years. |
| Graduated Repayment Plan | All Federal Direct Loan borrowers | Payments are lower at first and then increase, usually every two years, and are for an amount that will ensure the loans are paid off within 10 years. |
| Extended Repayment Plan | Borrowers with than $30,000 in outstanding Federal Direct Loans | Payments may be fixed or graduated, and will ensure that your loans are paid off within 25 years. |
| Revised Pay As You Earn Repayment Plan (REPAYE) | All Federal Direct Loan borrowers | Monthly payments will be 10 percent of discretionary income. Payments are recalculated each year and are based on your updated income and family size. You must update your income and family size each year, even if they haven’t changed. If you’re married, both your and your spouse’s income or loan debt will be considered, whether taxes are filed jointly or separately. Any outstanding balance on your loan will be forgiven if you haven’t repaid your loan in full after 20 years. |
| Pay As You Earn Repayment Plan (PAYE) | You must be a new borrower on or after Oct. 1, 2007, and must have received a disbursement of a Direct Loan on or after Oct. 1, 2011 | Your monthly payments will be 10 percent of discretionary income, but never more than you would have paid under the 10-year Standard Repayment Plan. Payments are recalculated each year and are based on your updated income and family size. You must update your income and family size each year, even if they haven’t changed. |
| Income-Based Repayment Plan (IBR) | Borrowers must have a high debt relative to their income | Your monthly payments will be either 10 or 15 percent of discretionary income (depending on when you received your first loans), but never more than you would have paid under the 10-year Standard Repayment Plan. Payments are recalculated each year and are based on your updated income and family size. You must update your income and family size each year, even if they haven’t changed. If you’re married, your spouse’s income or loan debt will be considered only if you file a joint tax return. Any outstanding balance on your loan will be forgiven if you haven’t repaid your loan in full after 20 years or 25 years, depending on when you received your first loans. You may have to pay income tax on any amount that is forgiven. |
| Income-Contingent Repayment Plan (ICR) | All Federal Direct Loan borrowers | Your monthly payment will be the lesser of 20 percent of discretionary income, or the amount you would pay on a repayment plan with a fixed payment over 12 years, adjusted according to your income. Payments are recalculated each year and are based on your updated income, family size, and the total amount of your Direct Loans. You must update your income and family size each year, even if they haven’t changed. If you’re married, your spouse’s income or loan debt will be considered only if you file a joint tax return or you choose to repay your Direct Loans jointly with your spouse. Any outstanding balance will be forgiven if you haven’t repaid your loan in full after 25 years. |
| Income-Sensitive Repayment Plan | Available only to those who borrowed a Federal Stafford Loan from a private lender; these federal student loans were not part of the William D. Ford Federal Direct Loan program | Your monthly payment is based on annual income, but your loan will be paid in full within 15 years. |
Federal Direct Parent PLUS Loans
Federal Direct Parent PLUS Loans are loans parents can borrow to pay for their dependent student’s educational expenses. Students must be considered a dependent by the FAFSA, enrolled in a qualifying academic program, and be enrolled at least half-time. Eligible parents who can borrow a Parent PLUS Loan include a student’s biological parents, whether they were listed on the FAFSA or not, and stepparents whose income was reported on the FAFSA. Parents must also pass a credit check in order to be approved for this loan.
Federal Direct Parent PLUS Loans currently carry an origination fee of 4.228%. The origination fee is deducted from the loan amount prior to its disbursal to the college. The Parent PLUS Loan is borrowed directly from the U.S. Department of Education as part of the William D. Ford Direct Loan Program. Parents may borrow for each year of their student’s undergraduate career, though subsequent credit checks will be required. Credit checks are valid for up to ninety days.
Repayment
Parents are given two options in repaying the Parent PLUS Loan. Typically, repayment begins within sixty days after the final loan disbursement for the academic year the loan was borrowed. Alternatively, parents can choose instead to defer loan repayment until after their student graduates or drops below half-time enrollment. Interest will still accrue and parents will be given the option of paying or capitalizing the interest. Regardless of the repayment option the parent selects, interest begins to accumulate at the time the first disbursement is made.
Federal Direct Parent PLUS Loan Interest Rate
The interest rate for any loans borrowed for the 2023 – 2024 academic year (July 1, 2023 – June 30, 2024) is fixed at 8.05% for the life of the loan.