Loans

In addition to scholarships, the Foundation's Student Aid Program is able to offer low-interest student loans to individuals pursuing college degrees.  

WHAT YOU NEED TO KNOW ABOUT LOANS FROM THE WINSTON-SALEM FOUNDATION:

• The current non-variable interest rate is 4%.
• The maximum amount of loan money available per student for an academic year is $5,000.
• students from Forsyth, Davie, Davidson, Stokes, Surry, Wilkes, and Yadkin counties will primarily be considered for educational loans.
• Limited loan funds are available to other North Carolina residents.
• Out-of-state students are typically not eligible for loan consideration.
• Undergraduate and graduate level students may be considered for loans.
• Loan checks are issued in the student's name only.
• A new application must be completed for each academic year.
• The interest rate for new student borrowers is reviewed for relevance each year by the Foundation Committee.
• Student loan funds are limited and applications are reviewed on an ongoing basis; therefore the earlier completed loan applications are received, the greater the possibility that loan funds will still be available. 

LOAN PROGRAM SPECIFICS:

• A student borrower must sign a promissory note and obtain the co-signatures of two adults.
• Co-signers may be parents, guardians, or any other North Carolina resident with the exception of spouses, boyfriends, or girlfriends.
• The student borrower and co-signers must have good credit ratings and be acceptable to The Winston-Salem Foundation's Student Aid Committee.
• Interest charged for a loan is payable annually, quarterly, or monthly while a student is enrolled in school.  Capitalization of interest is not an option.
• Repayment of the principal amount is deferred until the student-borrower leaves school.  There is a 60-day grace period prior to commencement of repayment.

INTEREST RATE REDUCTIONS:

• During the repayment phase of a loan, both principal and interest are paid.  As the principal is reduced per payment, the amount of interest is reduced.
• Borrowers electing automatic bank draft for monthly payments will receive a 1/4% interest rate reduction.
• Borrowers will be rewarded for on-time payments with a 1/4 % interest rate reduction at 12-month intervals concluding in the 72nd month.

For more detailed information regarding student loans, click to view a summary of the Foundation's Student Loan Program.