Best no-interest loans that won't affect my credit for son's NC State/UNC education?

Hi there! I went through this with my daughter last year (she's at NC State now). Unfortunately, there's no such thing as a no-interest loan for college - even federal loans have interest. The closest thing to what you're looking for is your son taking out Federal Direct Loans in HIS name after completing the FAFSA. These don't impact your credit, and they have the most favorable terms.\n\nYour son can get up to $5,500 in Direct Loans his first year ($3,500 subsidized + $2,000 unsubsidized). The subsidized portion doesn't accrue interest while he's in school. They also don't require repayment until 6 months after graduation.\n\nParent PLUS loans would be in YOUR name, affect YOUR credit, and start accruing interest immediately, though you can request deferment while he's in school.

Thank you so much! I didn't realize the subsidized loans don't accrue interest during school - that sounds closest to what I'm looking for. Do you know if the $5,500 is the maximum for the whole year? That doesn't seem like enough to cover what we'll need after scholarships.

theres NO such thing as a loan without interest lol. banks dont give out free money!! ur best bet is to have ur son take out the max federal loans in HIS name. parent plus are in YOUR name and WILL affect ur credit and start building interest right away. trust me i found out the hard way!

Actually, the subsidized federal student loans don't accrue interest while the student is in school, so that's pretty close to what the OP is asking about. But you're right that there's no completely interest-free option and that Parent PLUS loans are in the parent's name.

I work in financial aid, so let me clarify a few things:\n\n1. Federal Direct Subsidized loans are the closest to \

Thank you for such detailed information! We did use the Net Price Calculator and it looks like we'll need about $14,000 per year beyond what the federal loans will cover. I'm concerned because we don't qualify for much need-based aid, but taking on that much debt is scary. I hadn't heard of the NC Assist Loan - I'll definitely look into that!

My daughter goes to UNC Chapel Hill and let me tell u the FAFSA process was a NIGHTMARE. We called the financial aid office like 20 times and kept getting nowhere!!! So frustrating. Ended up using this service called Claimyr (claimyr.com) to get through to a actual person at the federal aid office when we had problems with our SAI calculation. They have a video that shows how it works: https://youtu.be/TbC8dZQWYNQ\n\nAnyway for loans, definitely max out the subsidized ones first, then maybe look at a part-time job for ur son? My daughter works 15 hrs a week in the library and it helps!

I've heard about Claimyr from someone else too. Did it actually work? I've been trying to call about my daughter's verification for weeks and just get disconnected. The hold music is driving me insane!

Yep it worked! Got through in like 20 minutes instead of being on hold for hours or getting disconnected. Worth it for my sanity alone lol. My daughter's working on campus helps a lot too - some departments are really flexible with student schedules.

have u considered community college first??? My son did 2 yrs at wake tech then transferred to state. Saved us like 30k and he still got the same degree!!!! just saying

We've definitely discussed that option! My son is really set on the

nope! he actually liked it better cuz smaller classes and professors knew his name. plus he still went to all the state football games with his friends and then when he transferred he joined a frat anyway. best of both worlds and wayyyy cheaper!

JUST A WARNING - parent plus loans are TERRIBLE!!! I took them out for my oldest 3 years ago and regret it so much. The interest rate is outrageous (7.54% right now) and they start charging interest immediately. I owe $15,000 more than I borrowed and my son hasnt even graduated yet!!!! Plus they show up on your credit report and count toward your debt-to-income ratio if you ever need a mortgage or car loan. I WISH someone had warned me.

same!!! nobody tells u this stuff when ur signing up. and they make it soooo easy to get approved its like a trap

Thank you both for the warnings! I was considering Parent PLUS because the limit is higher, but hearing about your experiences has me reconsidering. Did either of you look into private loans as an alternative?

Coming back to add some additional options for you to consider:\n\n1. NC State and UNC both offer payment plans that let you spread each semester's costs over 4-5 months instead of paying in one lump sum. This can reduce how much you need to borrow.\n\n2. If your son has strong academic credentials, he could apply for departmental scholarships even after starting - many aren't awarded until sophomore or junior year.\n\n3. Work-study positions (if awarded through FAFSA) provide on-campus jobs that work around class schedules.\n\n4. Some private lenders offer student loans with co-signers that can be comparable to Parent PLUS rates, and many have co-signer release options after a certain number of on-time payments.\n\n5. Consider applying to both UNC/NCSU plus one of the excellent NC private colleges that might offer better merit aid packages (Davidson, Wake Forest, etc).\n\nRemember that the sticker price isn't always what you'll pay. Have you had your son reach out directly to the financial aid offices? Sometimes they can identify additional resources.

These are great suggestions, thank you! We haven't looked into payment plans, but that could definitely help. My son does have good grades (3.8 GPA), so maybe there are more scholarship opportunities than I realized. We've been so focused on the big national scholarships that we might have missed smaller departmental ones. I'll have him contact the financial aid offices directly - we've only used the online calculators so far.

One thing no one has mentioned yet - if you're looking at both UNC and NC State, make sure you consider the true cost difference between them. My son applied to both, and we were surprised that after all aid was calculated, NC State was actually about $3,000/year cheaper for our family situation even though the published tuition rates are similar. The financial aid packages can vary quite a bit between schools.\n\nAlso, don't forget to factor in living expenses! Off-campus apartments might be cheaper than dorms after freshman year, especially if roommates are involved. Food costs can vary wildly too depending on meal plan vs. cooking.

good point! Chapel Hill is WAY more expensive for apartments than raleigh too. my daughters rent in chapel hill is crazy, like $950/month WITH roommates!!

Exactly! And then there's the cost of parking permits, which are insanely expensive at UNC compared to State. These \

I just wanted to circle back to your original question about loans not affecting YOUR credit. To be perfectly clear:\n\n• Federal Direct Loans (both subsidized and unsubsidized) are in your SON'S name only and won't affect your credit\n• They don't require a credit check\n• They offer income-based repayment options after graduation\n• They qualify for Public Service Loan Forgiveness if he works in qualifying jobs\n• They can be consolidated and have fixed interest rates\n\nThese are BY FAR the best option, but unfortunately, they're limited to that $5,500 freshman year amount.\n\nFor everything beyond that, either you take Parent PLUS (in your name, affects your credit) or your son takes private loans (likely needs you as cosigner, which affects your credit).\n\nThere's no perfect solution that meets all your criteria, but I would absolutely max out the Federal Direct Loans first, then consider a combo of payment plans, work-study, and possibly Parent PLUS for the smallest amount possible.

Thank you for breaking this down so clearly! I definitely understand better now. It sounds like we should focus on maximizing all other options (scholarships, payment plans, work-study) to minimize what we need to borrow beyond the Federal Direct Loans. I appreciate everyone's help - this process is so much more complicated than I expected!