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Student Loans

Direct Lending Information

Direct Loan (Federal Stafford)

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.

Direct Subsidized Loans

Subsidized loans are awarded on the basis of financial need as determined by the Free Application for Federal Student Aid (FAFSA). With a subsidized loan, the federal government pays interest on the student loan during:

• At least half-time enrollment in school,
• The six-month grace period after the student is no longer enrolled on at least a half-time basis
  
  

Direct Unsubsidized Loans

Student borrowers may qualify for this type of loan regardless of need or income. With unsubsidized loans, the student is responsible for interest that accrues on the loan 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). You can 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 ultimately repay less. If you defer the interest, it will capitalize, which will result in an increase in student loan debt and monthly payments.

Direct Loan Eligibility

In addition to the FAFSA, the following eligibility requirements must be met in order to qualify for a Federal Direct Student Loan:

• Half-time enrollment at an eligible institution, such as TSU, in an eligible degree seeking program
       - 6 hours for undergraduate students, and 5 graduate hours for graduate students
• Be a U.S. citizen or eligible non-citizen
• Maintain Satisfactory Academic Progress (SAP)
• Not be in default on an educational loan or overpayment on an educational grant
• Not have Title IV student loans that exceed the annual or aggregate loan limits

Student Loan Limits

Eligibility for all Federal Direct Loans will be based on cost of attendance, the estimated family contribution (EFC) as determined by FAFSA, other aid received, and the loan limits set by the U.S. Department of Education. Students may never qualify for more than the cost of attendance for the college or the annual loan limit. The charts below show the maximum amounts you may borrow.

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Undergraduate Student Loan Limits:

 

Graduate Student Loan Limits

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 Loan Counseling

Entrance  Counseling

The federal government  requires  all students that are first-time borrowers for the Federal Direct Stafford Loan and the Federal Direct Grad PLUS loan to complete an Entrance Counseling before their loan can be processed. You will need your FSA ID/password to complete the online counseling. *Our office will electronically notified.

Entrance Counseling for the Federal Direct Stafford and Grad PLUS Loans

Exit Counseling

The federal government requires all students who have stopped attending, applied to graduate (or whose enrollment has dropped below half-time) and have been a recipient of federal student loans. Repayment of federal student loans begins six months after graduation, or six months after a student is no longer enrolled at least half-time. This counseling is required for even if they plan to transfer to another school. You will need your FSA ID/password to complete the online counseling. *Our office will electronically notified.

Exit Counseling for the Federal Direct Stafford and Grad PLUS Loans

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PLUS Loans

In order to receive a PLUS loan, parents of dependent students and graduate students must complete the PLUS loan application procedure. 

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Alternative (Private) Loans

Alternative Signature Loans - Alternative student loans are privately funded loans that are NOT part of the federal student loan program. They are offered by banks, credit unions and other lending institutions.  Alternative loans are designed to supplement federal financial aid awarded to students.  Each private loan lender determines the interest rates, fees and eligibility criteria.  All private loans require a credit check to be performed to determine eligibility. 

Once you click the above link you will be taken to an external site called "FASTChoice."  Click "Continue" to review the borrowing essentials information which is 5 screens of information related to student borrowing.  Once you have reviewed the information you will be taken to our custom lender list.  Tennessee State University has electronic processing with these lenders which reduces processing time, however, we do not endorse or recommend any of these participants and the list is provided solely for your convenience.  You may choose a lender that is not on this list, however, you must provide us the certification information if you do so.  

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