To proceed with the application process for the Federal Stafford Loan Programs, the student must receive and return the Financial Aid Award Notification letter to the Office of Financial Aid at ETSU and accept the offer of the loan(s), complete the enclosed Stafford Loan Preferred Lender Selection Form choosing a lender. If the student chooses not to use one of lenders listed on the selection form, he/she will need to contact a lender, request a Master Promissory Note for the Loan Program, complete and sign the application, and return it to the Office of Financial Aid at ETSU. The Office of Financial Aid would then receive an actual paper check, not an electronic transfer of funds from the lender.

Once the Federal Stafford Loan Loan is guaranteed, if the student chose one of the lenders from the selection form, the student will receive a Master Promissory Note to sign and return to the designated lender. Please keep in mind, the promissory note the student receives will be a Master Promissory Note. The Master Promissory Note will not be sent to the student again, signed, or returned to the lender as long as the student borrows funds through the same lender and remains as a degree-seeking student with ETSU. The student will only need to sign the Financial Aid Notification letters as received.  However, students may choose to electronically sign the Master Promissory Note at http://www.etsu.edu/finaid/Loans/E-sign.htm

All students borrowing at ETSU from the Federal Stafford and Federal Perkins Loan Programs are required to complete Entrance Loan Counseling. Federal Stafford Loan Entrance and Exit Counseling may be done electronically online at http://mapping-your-future.org/oslc. Federal Perkins Loan Entrance counseling may be done electronically online at http://mapping-your-future.org/services/oslcidx.htm. Upon online completion, you must submit your online form. This form will be sent to the Office of Financial Aid at ETSU confirming your completion of the required loan counseling session. However, Federal Perkins Loan "Exit Interview" must be completed with the ETSU Perkins Loan Department, which can be reached by phone (423 439-6117/6118) or email (bursar@etsu.edu) for details. Entrance Loan Counseling is mandatory before receiving loan funds for the first time while attending ETSU. Entrance Loan Counseling must be completed at ETSU and not at another institution. Federal regulations require all student loan borrowers to participate in Exit Loan Counseling whenever you drop below half-time enrollment status, withdraw, graduate, or transfer from ETSU.

There is a charge for processing a student loan. A student will pay a fee of up to 3% of the guaranteed loan amount. The percentage charged depends upon the lender chosen by the student. The fee is deducted proportionately from each disbursement of the loan before the funds are received in the Office of Financial Aid at ETSU.

Please be aware that the benefits offered by lenders to student loan borrowers vary and are subject to change.  Before selecting a lender, please contact various lenders of interest and review their borrower benefits to determine which lender best meets your educational borrowing needs.  The lenders listed in our Preferred Lender list have demonstrated their commitment to offering ETSU students the best overall terms and services over the life of their loan.

ETSU does not receive any monetary benefit from any lender.

HOW DOES ETSU SELECT ITS PREFERRED LENDERS?  Our preferred lenders are selected on the basis of:

·        Ability to transmit/process loan information electronically

·        Advantages offered to students

·        General student feedback, student preferences over time

·        Track record of performance with ETSU

·        General input from the business community; professional contacts in the student financial aid community, and ongoing review of appropriate professional business and trade journals

·        Determinations are made on an annual basis by the Director in close consultation with the Assistant Directors