All students are eligible for some type
of student loan, provided they are not in default of any outstanding
student loans. There are several types of loans available to TTU
students. They include the subsidized and unsubsidized Stafford
loan, the Perkins loan, and Parent Plus loan.
Types of Loans
Subsidized Loan –
Eligibility for this is based on the income and asset information
you provided to us through your FAFSA. If you are eligible for
this type of loan, no interest accrues on this loan as long as
you are enrolled for at least 6 semester hours. Repayment begins
after you leave school.
Unsubsidized Loan
– Based on the results of your FAFSA, if you are not eligible
for a subsidized loan you would be considered eligible for an
unsubsidized loan. This type of loan is different from the subsidized
loan because you are responsible for the interest as it accrues
while you are in school. You may, however, defer payment of both
interest and principle until you leave school.
Federal Perkins Loan
– This loan is also based on the results of your FAFSA.
This is a loan that has a low interest rate (currently 5%). TTU
is your lender for a Perkins Loan. If you are attending school
at least part-time, you have nine months after you graduate, leave
school or drop below half time before you must begin repayment.
If you meet certain specific criteria, this loan may be forgivable
– especially for teachers, nurses, and law enforcement personnel
who meet the requirements. Seniors and Graduate students will have priority for these limited funds. For more information on Perkins Loans,
contact TTU’s Bursar's
office.
There are specific limits to how much
a student can borrow per academic year, based on the number of
hours a student has successfully completed, and dependency status.
Parent Plus Loan –
These loans allow a parent to pay for education expenses of their
dependent undergraduate students. There are specific regulations
as to how much a parent can borrow, depending on the amounts of
other financial aid received by the student. These loans are credit
based, and some parents will not qualify. You may use any lender that you wish (community bank, student loan lender, etc). For more information on Parent Plus Loans, please check our PLUS loan page.
Alternative student loans - These loans are credit based student loans. Some students may not qualify for this type of loan, which is usually taken in addition to the Stafford loans. You may use any lender that you wish (community bank, student loan lender, etc). For more information, visit our alternative loans page. If you wish to check on the status of your alternative student loan, please follow the link to ELM Resources.
Loan Consolidation - Are you considering consolidating your loans? Want to know more about what loan consolidation can offer you? Check out our Loan Consolidation Information Sheet, or go directly to the Department of Education's Direct Lending Consolidation Website.
First Time Borrowers
Graduating Seniors
Important Information About Single Semester Loans
Maximum Federal Borrowing Limits
Special Programs You May Qualify For
Loan Calculators
First
Time Borrowers
**** The first time
you take out a Stafford loan through Tennessee Tech, you will
be required to sign a promissory note. Each year you take out
a Perkins loan, you will be required to sign a promissory note
for Perkins.
**** The federal government
requires entrance interviews for all students
the first time they take out a Stafford loan.
Entrance and Exit Counseling
(http://www.dlssonline.com/exitcounseling/ecec-main.asp)
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Graduating
Seniors
**** The federal government
requires exit interviews for all students who
have taken out a Stafford loan and drop below full time status,
do not return to school, or graduate. Even if you plan on returning
to school, you need to complete an exit interview.
Entrance and Exit Counseling
(http://www.dlssonline.com/exitcounseling/ecec-main.asp)
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Important
Information About Single Semester Loans
**** All single semester
loans, for example a loan for the spring semester only, is subject
to the federal regulation that requires these loans be credited
in two disbursements. This means that if you take out a loan in
the spring only, you will receive the proceeds of only one half
your loan in the beginning of the semester. The second disbursement
of a one semester loan occurs at the midpoint of the semester.
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Maximum Federal Borrowing Limits
****Please take note of the the following maximum federal borrowing limits for each class level and student status. These limits are effective for the 12 month academic beginning Fall Semester, and continuing through Spring Semester and Summer Semester. These are the updated amounts beginning July 1, 2007.
| |
Dependent |
Independent |
| Freshman (less than 30 completed hours) |
3,500 |
7,500 |
| Sophomore (completed between 30-59 hours) |
4,500 |
8,500 |
| Junior or Senior (more than 59 hours) |
5,500 |
10,500 |
| Graduate |
------ |
15,900 |
If you borrow the maximum for your class level and student status during the Fall and Spring semesters of the academic year, you will not be able to use a student loan for the Summer semester. For example, a dependent sophomore student who is eligible to borrow $3,500 for the academic year could borrow:
| |
Fall |
Spring |
Summer |
Total |
| Example 1 |
$1,750 |
$1,750 |
0 |
$3,500 |
| Example 2 |
$1,000 |
$1,000 |
$1,500 |
$3,500 |
There are also federal limits on the maximum aggregate (total) amount you may borrow. Dependent undergraduate students may not borrow more than a total of $23,000. Independent undergraduate students may not borrow more than a total of $46,000.
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Special
Programs You May Qualify For
The link below requires the free Adobe
Acrobat Reader for viewing. Acrobat Reader is available for download
here.
**** If you are an
education major, you may have heard about a program called Teacher
Loan Forgiveness. This program forgives up to $5,000
of a qualifying Stafford student loan. The Teacher Loan Forgiveness
Application has detailed program regulations and information.
Teacher Loan Forgiveness
(PDF)
**** Veterans
Benefits Deferment. If you are receiving education benefits
from the U. S. Department of Veterans Affairs or other governmentally
funded education assistance, you may be eligible to defer your
tuition payment until the last day of the semester. You must file
a formal application within the first two weeks of the semester
for this. To see if you are elegible please go to visit the Records
site > http://www.tntech.edu/records/vets.html
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Loan Calculators
Student Loan Repayment Calculator
Student Loan Consolidation Calculator
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