All students are eligible for some type of student loan provided they are not in default on any outstanding student loans. There are several types of loans available to Tennessee Tech students and they include: Federal Direct Stafford Loans, Perkins Loans, Parent PLUS Loans, Grad PLUS Loans and Alternative Loans .
Types of Loans
University Loan - This short-term loan is available to students on the first day of classes each semester (Fall, Spring, and Summer). It is designed to help students with their account balance so that they may confirm their schedule while allowing them 30 days to get their financial aid in order. During Fall and Spring semesters the loan will only cover the amount needed to make their first deferred payment (25% of the account balance plus a $50 fee). During the Summer, the amount will vary since the deferred payment option is not available for that semester. The application for this form is in electronic format. Students must complete the form online and then if determined they are eligible, the student will receive an e-mail to their TTU email address with further instructions.
The University Loan is available starting on the first day of classes each semester.
Federal Direct Stafford Loans
Federal Direct Stafford Loans are low-interest loans for students to help pay for the cost of a students education after high school. The lender is the U.S. Department of Education rather than a bank or other financial institution. Current interest rate information for Federal Direct Loans, loan calculators and repayment options are available on the Direct Loan Website.
With Federal Direct Stafford Loans, the student will:
- Borrow directly from the Federal Government and have a single contact, which will be one of 12 possible loan servicers chosen by the Federal Government.
- Get on-line access to your Direct Loan information 24-hours a day, 7 days a week at http://www.studentloans.gov or view all loans at http://www.nslds.ed.gov .
- Choose from several repayment options which are designed to meet the needs of almost any borrower.
There are two types of Federal Direct Stafford Loans which a student may qualify for:
1) Federal Direct Subsidized Loan - Eligibility for this loan 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 undergraduate semester hours. Repayment begins after you leave school or fall below half-time enrollment once your 6 month grace period has been exhausted. Graduate students are not eligible.
2) Federal Direct 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 in that you are responsible for the interest as it accrues while you are in school, and you must be enrolled half-time (6 UG hours for an undergraduate and 5 GR hours for a graduate student). You may, however, defer payment of both interest and principle until you leave school or fall below half-time enrollment.
All loans are limited on how much a student can borrow per academic year, based on the number of hours a student has successfully completed, dependency status, and cost of attendance.
Federal Direct PLUS Loan (For Parents) - These loans allow a parent to pay for educational 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. Direct PLUS Loans are funded and credit decisions made by the U.S. Department of Education. For more information on Direct PLUS Loans, please check our PLUS loan page. Interest accrues while student is in school, however, Direct PLUS borrowers may be able to defer both interest and principle payments until the student leaves school or falls below half-time enrollment if requested with their loan servicer.
Alternative Student Loans - These loans are credit based student loans and may or may not require a co-signer. These loans are provided through a private lender and you may use any lender you choose (community bank, student loan lender, etc.). For more information, visit our Alternative Loans page. The amount of loan the student can receive may be limited by other aid the student receives and their cost of attendance.
Federal Direct Grad PLUS Loans - Grad PLUS Loans are Federal Loans which graduate students may borrow to help pay educational expenses. A student must be enrolled at least 5 credit hours per semester and may borrow up to the total of the Estimated Cost of Attendance less resources and other financial aid. To apply for a Grad PLUS loan you must complete the FAFSA. Additionally you will be required to sign a Grad PLUS Master Promissory Note and complete Entrance Counseling. To apply for a GRAD PLUS loan, please contact Geneva Phillips (firstname.lastname@example.org) for a preliminary application form to begin the process. These loans are credit based and may or may not require an endorser. Your completed application will allow TTU to authorize the required U.S. Dept of Education credit check.
Loan Consolidation - Are you considering consolidating your loans? Want to know more about what loan consolidation can offer you? Check out https://studentloans.gov/myDirectLoan/index.action for more information, and you can go to www.nslds.ed.gov to view a full listing of Federal Loans you have received.
First Time Borrowers
**** The first time you take out a Federal Direct Stafford Loan through Tennessee Tech, you will be required to sign a Master Promissory Note and Entrance Counseling.
**** Each year you take out a Perkins loan, you will be required to sign a Master Promissory Note.
Master Promissory Note (MPN)
*** The federal government requires that all students taking out a Federal Direct Stafford Loan also complete a Master Promissory Note. This can be completed here: https://studentloans.gov/myDirectLoan/index.action .
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 current amounts beginning July 1, 2008 (unchanged as of July 1, 2014).
|Freshman (less than 30 earned hours)||5,500||9,500|
|Sophomore (earned between 30-59 hours)||6,500||10,500|
|Junior or Senior (earned 60 hours or more)||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 (including loans borrowed as an undergraduate).
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 Federal Direct Stafford 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 eligible please visit the Tennessee Tech Veterans page at: https://www.tntech.edu/em/military-and-veterans-affairs/student-veterans