Prospective Teachers Scholarship Loan Program (PTSL) Cash Repayment FAQ
Prospective Teachers Scholarship Loan Program (PTSL) Cash Repayment FAQ
You made a commitment to repay this loan when you signed the promissory note accepting education funding from NCSEAA. If you cannot repay the loan through loan forgiveness, then you must repay it in cash within ten (10) years of graduation or withdrawal from the PTSL program. You may repay the loan in one lump sum or remit monthly installment payments. Please contact Repayment Services staff for a payoff amount should you decide to repay it in one lump sum. If you opt to repay it in monthly installments, you will be billed monthly by NCSEAA.
Payments are due on the first day of each month and should be mailed to:
NCSEAA – Repayment Services
P.O. Box 41349
Raleigh, NC 27629
When is my first monthly payment due?
Your first payment is due October 1st after graduation or 90 days after withdrawal from the program. NCSEAA will mail a billing statement to the current address on record approximately fifteen (15) days prior to the payment due date. It is your responsibility to notify NCSEAA promptly of any name or address change. If you do not receive a bill due to an incorrect address, you are still responsible for remitting your payments on time.
When does interest begin to accrue on this loan?
Interest at the rate of 10% begins to accrue September 1st after graduation or 90 days after withdrawal from the program.
Is there a penalty for prepayment of this loan?
No, there is no penalty should you decide to pay off this obligation early. Please contact Repayment Services staff at (919) 549-8614, ext. 4654, or (800) 700-1775, ext. 4654 for the correct payoff amount.
What should I do if I cannot remit a payment when due?
If you cannot remit a scheduled payment when it is due, you are responsible for contacting NCSEAA prior to the due date for assistance. You may be eligible to temporarily postpone or delay payments; however, you must submit a Postponement/Deferment Form to NCSEAA for approval. Eligible deferments include: personal illness, family medical leave, full-time student enrollment, and unemployment. You must continue to remit your scheduled payment until you receive deferment approval from NCSEAA.
Does interest continue to accrue during periods of approved deferment?
Yes. Interest at the rate of 10% continues to accrue during periods of approved deferment.
What if I do not qualify for deferment? Are there other options available for borrowers who are experiencing financial difficulty?
Yes. You may apply for a temporary payment reduction by submitting a Financial Statement to NCSEAA. You must continue to remit your scheduled monthly payment until you receive approval from NCSEAA.
Can I consolidate my loan?
No. Consolidation is an option available for federal loan borrowers. The PTSL loan is funded by the State of North Carolina.
Can I cease making cash payments if I become eligible for loan forgiveness?
You may cease making cash payments once you qualify for loan forgiveness. Click on the Loan Forgiveness link for information on how to apply for loan forgiveness.
I am disabled and unable to work or pay the loan in full. What options are available to avoid default?
If your disability is permanent and total, you may be eligible to have your loan cancelled. You must complete a Disability Request Form and have your disability certified by a licensed physician.
What are the consequences of default?
NCSEAA will pursue collection actions to collect the balance due on your account should you fail to repay your loan as promised. You also will lose the eligibility to receive future State-funded education assistance and derogatory credit information may be reported to national credit reporting agencies. Collection actions may include the following:
- Refer your account to an external collection agency;
- Seize your State tax refunds;
- Contact your employer, if you are a State employee, for wage garnishment up to 10% of your disposable income;
- Refer your loan to the State Attorney General’s Office for collection/legal action.
Whom should I contact if I have additional questions concerning my PTSL loan?
Additional information is available in the PTSL Rules and Regulations or you may contact Repayment Services staff between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday.