Loans
Applying for a Federal Direct/Stafford Loan
1. The FAFSA results must be received and correct in our office. You may complete the FAFSA at www.fafsa.ed.gov . You will need a pin # to sign the FAFSA and to sign your Master Promissory Note. You may get or view your PIN here.
2. Complete the Summer Financial Aid Eligibility Application and submit it to the financial our office.
3. Go to your MYTSU account, click on financial aid, click on award, click on award for aid year, accept all or partial loan offers.
4. You must also complete an entrance interview one time at each school you attend.
5. You must sign a Direct Loan Master Promissory Note one time, even if you have already signed a promissory note with a bank or other lender, because the Federal government will be your lender.
Applying for Federal Direct Parent Plus Loans
TSU is changing to the Federal Direct Loan Program. The banking and credit markets have been very troubled for the past year, with many lenders dropping out of the student and parent loan programs. As a result, all parents who have had previous parent Plus loans with banks and other lenders will have to complete the steps below to receive a Parent loan beginning Summer 2009. For more information about why TSU is changing to Direct Loans, click here .
1. The FAFSA results must be received and complete in our office. If you have not completed the FAFSA you may complete it at www.fafsa.ed.gov
2. Complete a Federal Direct Parent Loan request sheet and return it to our office (fax, mail, or drop it off). This will allow us to start the credit approval process with the Federal government and certify the loan.
3. You must also complete a Federal Direct Master Promissory Note with the Federal government one time. This must be completed with the Federal government even if you have signed a Master Promissory Note with a bank or lender earlier.
4. We have created a FAQ about the Federal Direct Lending Program if you would like additional information about the program, click here.
TSU offers a variety of student and parent-based loans to help families pay for educational expenses. Loans must be repaid and are considered a "self-help" form of assistance. Budgeting is very important when considering how much to borrow.
Be sure you and your family have set realistic borrowing levels so you will be able to
repay the student loans after you graduate.
Stafford Graduate PLUS Loan
General Stafford Loan Information
There is a grace period of 6 months after graduation or dropping below half-time attendance before repayment of the principal of the loan begins. Loan amounts are awarded based on grade level and cannot exceed the established cost of attendance for the school, including other aid received. Your awards may include both subsidized and unsubsidized loans.
Stafford Subsidized Loan
The Stafford Subsidized loan is awarded on the basis of financial need as determined by the FAFSA. The federal government pays the interest on the loan until the student begins repayment and during authorized periods of deferment.
Stafford Unsubsidized Loan
The Stafford Unsubsidized loan is not always based on financial need. For unsubsidized loans, the student is responsible for accrued interest from the time the loan is disbursed until it is paid in full. You may choose to pay the interest as it accrues while you are enrolled, or you may defer the interest payments and allow them to accumulate (capitalize). If you choose to pay the interest as it accumulates, you will repay less in the long run. If you defer the interest, you will increase the amount you have to repay.
Stafford Loan Limits
Undergraduate Student Total School Year Loan Limits:
FRESHMAN | SOPHOMORE | JUNIOR | SENIOR | LIFETIME | |
Maximum Subsidized | $3,500 | $4,500 | $5,500 | $5,500 | $23,000 |
Maximum Unsubsidized | $4,000* | $4,000* | $5,000* | $5,000* | $34,500* |
Additional Unsubsidized | $2,000 | $2,000 | $2,000 | $2,000 |
*Independent and/or dependent students with a Federal Parent PLUS loan denial.
Graduate Student Loan Limits
- Subsidized Stafford loan limit of $8,500 for the school year.
- Unsubsidized Stafford loan limit of up to $12,000 for the school year.
- Lifetime Stafford loan limit of $138,500, which includes all subsidized and unsubsidized graduate and undergraduate loans.
- Generally out-of-state students are eligible to receive the maximum annual loan limit.
Please note: All loans are based on cost of attendance, EFC, other aid received and the above loan limits. STUDENTS MAY NOT QUALIFY FOR THE FULL AMOUNTS LISTED ABOVE.
Graduate and professional student have a low-cost option for financing their education. The interest rate on the Grad PLUS loan is a variable rate and can change annually on July 1 but will not exceed 9%. The Grad PLUS loan is not a need based loan, however credit guidelines apply in determining the student eligibility. Grad PLUS loans allow the student to borrow up to 100% of the cost of education minus any other financial aid received. For more information on the Graduate PLUS Loan, click here. To apply for a Graduate PLUS loan you must complete the Direct Grad PLUS Loan Application and sign the Master Promissory Note. All Grad PLUS borrowers must complete the Online Entrance counseling for the Grad PLUS loan even if you have previously taken out Stafford Loans.
If you apply for a loan that covers two semesters, loan funds will be disbursed by the lender in equal amounts at the first of each semester.
To be eligible to receive a loan disbursement, all students must be officially enrolled in a degree-seeking program and be attending at least half time (6 hours for undergraduate and 5 hours for graduate).
Stafford Loan Entrance Counseling
All first-time borrowers at TSU must complete an Entrance Interview before receiving any loan funds.
Stafford Loan Exit Counseling
The federal government requires all students who stop attending school to complete an Exit interview. This exit counseling session will give you important information about repaying your loan. This counseling session must be completed by students who drop below half-time, withdraw or graduate from TSU.
Stafford Loan Application Procedure
v The results of your Free Application for Federal Student Aid (FAFSA) MUST be on file in the Financial Aid Office and all verification must be complete.
v Loan eligibility will be listed on your MYTSU account for the Fall/Spring. You must accept your awards for the loan to be processed. DO NOT BORROW MORE THAN YOU NEED!
v All first-time borrowers at Tennessee State University for Stafford and Grad PLUS Loans must complete the Entrance Loan counseling session. by going to and selecting Entrance & Exit Counseling at the top of the page.
v Beginning Summer 2009, all borrowers at Tennessee State University must complete the Master Promissory Note with Direct Lending.
v You will be required to use your U.S. Department of Education issued PIN(the one used to complete the FAFSA) number to complete the MPN
Loan Servicer Information
To find out who services your student loan and how to contact them, you can access the
National Student Loan Data System (NSLDS) for students.
Loan Ombudsman
After many unsuccessful attempts to resolve loan problems, students may contact the Federal Student Loan Ombudsman office for help in resolving their issues.
Phone | Mail | Internet |
1.877.557.2575 | Office of the Ombudsman | |
Student Financial Assistance | ||
U.S. Department of Education | ||
Rm. 3012, ROB #3 | ||
7th and D Street, SW | ||
Washington, DC 20202 |
With the cost of education increasing each year, many parents need help in paying for their students postsecondary education. The Federal government created the PLUS loan Program for this purpose.
PLUS (Parent Loan for Undergraduate Students) is a low-interest federally funded loan for parents of dependent students. The interest rate on the Direct Parent PLUS loan is 7.9%. These loans enable parents with good credit histories to borrow funds to pay educational expenses. The amount of the loan may not exceed the cost of attendance minus other financial aid the student will receive. The loan amount can not exceed the cost of attendance. Repayment for a PLUS loan begins 60 after the loan is fully disbursed. A parent borrower is classified as:
1. The natural parent, adoptive parent or spouse of a remarried parent of an eligible dependent, undergraduate student.
2. A U.S. citizen, U.S. national or eligible non-citizen
3. Not in default on any Title IV loan program
4. Must have a good credit history. Any adverse credit may cause the application to be denied
5. Student must be enrolled at least half-time
6. Student must be maintaining Satisfactory Academic Progress
For more information on the Federal Parent PLUS Loan, click here. To apply for the Direct Parent PLUS loan please complete the Parent PLUS application. You must also complete the Master Promissory Note. If the parent is denied by Direct Lending for the Parent PLUS loan the student might be eligible for additional funds.
Private alternative education loans my assist students with the gap between the actual cost of education and the federal loan amount limits you are able to borrow. We encourage student to first look into the federal loan programs. These loans may assist students who have reached their aggregate Stafford loan limits to complete their education. Eligibility for private student loans often depends on the students credit score. These loans are offered by private lenders. The actual amount you may borrow varies and depends on each individual students circumstances.
Please look at the preferred lenders for Tennessee State University.
NOTE: Borrowing should be done conservatively to avoid heavy loan debt and the potential for default.