The Unsubsidized Federal Stafford Loan is a non-need based loan program, in which the interest is charged to the student from the time the loan is disbursed until it is paid in full. If the student allows the interest to accumulate, it will be capitalized (the interest will be added to the principal amount of the loan and additional interest will be based upon the higher amount). The student has the option of paying the interest while in school on a monthly or quarterly basis, so it will not accumulate.

The interest rate on the Federal Stafford Loan Programs is a fixed 6.8%.

Remember, you may request your student/parent loan through any lender.  If your lender is not shown on the Lender Selection Form, you may write in the name of the lender you wish to borrow from and you must provide ETSU with the application.

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