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. Current interest rate information, loan calculators and repayment options are available on Direct Lending's Website.
Types of Loans
University Loan - This short-term loan is available to students on the first day of classes each semester. It is designed to help students make their first deferred payment (50% of the account balance plus a $50 fee) so that students may confirm their schedule while allowing them 30 days to get their financial aid in order. The application for this form is in electronic format. Students must complete the form online and then print and sign it. Forms turned into the financial aid office will be reviewed, and students will need to come back to the financial aid office to pick up their processed paperwork and follow additional directions to complete the loan process.
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 or fall below half-time enrollment. Graduate students are not eligible.
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 or fall below half-time enrollment.
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. Graduate students will have priority for these limited funds. For more information on Perkins Loan Forgiveness, 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 for their dependent undergraduate students. Student must complete a FAFSA. 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. Parent PLUS Loans are funded and credit decision made by the U.S. Department of Education. For more information on Parent Plus Loans, please check our PLUS loan page. Interest accrues while student is in school, however plus borrowers may be able to defer both interest and principle payments until the student leaves school or falls below half-time enrollment.
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. Alternative loans may or may not require a co-signer. 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 the Department of Education's Direct Lending Consolidation Website.
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.
**** 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.
All students not enrolled at least part time who have taken out Federal Direct Stafford Loans must complete Exit Counseling . You may complete this requirement online.
Maximum Federal Borrowing Limits
****Please take note of the following maximum federal borrowing limits for each class level and student status. These limits are effective for the 12 month academic year beginning Fall Semester, and continuing through Spring Semester and Summer Semester. These are the updated amounts beginning July 1, 2008 (unchanged as of July 1, 2012).
|Freshman (less than 30 completed hours)||5,500||9,500|
|Sophomore (completed between 30-59 hours)||6,500||10,500|
|Junior or Senior (more than 59 hours)||7,500||12,500|
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 $6,500 for the academic year could borrow:
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 $31,000 (with no more than $23,000 being subsidized). Independent undergraduate students may not borrow more than a total of $57,500 (with no more than $23,000 being subsidized). Graduate students may not borrow more than a total of $138,500.
Special Programs You May Qualify For
**** 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. Please send completed applications to your lender, not Tennessee Tech University.
**** 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 (needing to change??)