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Office of Financial Aid

Division of Student Affairs

Loan options available to ETSU students include federal, state and private sources depending on eligibility.  Typically, federal loans should be considered first, as they have the lowest interest rates and best repayment terms.  

 

Federal education loans should be the first form of financing considered when a family is deciding whether or not to borrow funds to help pay for a student's cost of education.

  • Undergraduate and graduate students can apply for Federal Direct Stafford Loans
  • Graduate students and parents of dependent undergraduate students can apply for funds through the PLUS Loan program.

Federal student loans are borrowed through programs supported by the federal government. These loans usually have low interest rates and offer attractive repayment terms, benefits, and options, and repayment generally does not begin until after the student leaves school. See the current interest rates for federal loans.

To be eligible for any of these federal loans, you must

There are several kinds of Federal Loans available: (Compare loan types)

  • [for Undergraduate and Graduate Students] Federal Direct Stafford
  • [for Parents or Graduate Students] Federal Direct PLUS Loans
  • [for Undergraduate and Graduate Students]  Perkins

If you already have at least one student loan or a Federal Family Education Loan you may qualify for a consolidation loan

  • Direct Consolidation
  • Special Direct Consolidation
Federal Direct Plus

What is the Grad PLUS Loan?

  • Requires credit approval.
  • Administered through the Direct Loan Program.
  • View current interest rates
  • Interest 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.

What is the Parent PLUS Loan?

  • Requires credit approval.
  • Administered through the Direct Loan Program.
  • Loan is taken by the parent on behalf of his/her dependent student.
  • View current interest rates
  • Interest charged to the parent 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.
  • After the student's account is paid in full, all PLUS Loan refunds will be mailed from ETSU directly to the parent borrower.

How does a graduate/professional student or parent apply for a PLUS Loan?

  • Complete the Free Application for Federal Student Aid (FAFSA) online.
  • Once a PLUS Loan has been awarded on the student's GoldLink account, the graduate/professional student or parent should follow the PLUS Loan Procedures.

How does a borrower repay Federal Direct PLUS Loans?

Direct Stafford Subsidized & Unsubsidized Loans

What is the Subsidized Direct Loan?

  • Need-based loan administered through the Direct Loan Program.
  • "Need" is determined by the FAFSA.
  • View current interest rates
  • Interest is deferred until after the student graduates or is no longer enrolled in at least 6 credit hours.
  • Awarded based on financial need, dependency status, cost of attendance, and grade level.
  • Limits for Financial Aid

What is the Unsubsidized Direct Loan?

  • Non-need based loan administered through the Direct Loan Program.
  • View current interest rates
  • 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.
  • Awarded based on dependency status, cost of attendance, and grade level.
  • Limits for Financial Aid 

How do I apply for Subsidized/Unsubsidized Direct Loans?

How does a borrower repay Subsidized/Unsubsidized Direct Loans?

Perkins Loans
 

What is the Federal Perkins Loan?

  • Need-based loan administered by the university through ECSI.
  • "Need" is determined by the FAFSA.
  • View current interest rates
  • Awarded based on application file completion date, exceptional financial need, cost of attendance, and funding level of the school from governmental funds.
  • Limits for Financial AidInterest is deferred until 9 months after student graduates or is no longer enrolled in at least 6 credit hours.

How do I apply for a Federal Perkins loan?

  • Complete the Free Application for Federal Student Aid (FAFSA) online as soon after October 1st as possible and promptly follow up on your application in order to complete all requirements as early as possible.
  • Accept all or part of the loan on GoldLink after it has been awarded.
  • Complete a Perkins Master Promissory Note online. This must be done each year that a student is awarded and accepts the Perkins Loan. The ETSU School Code for Perkins MPN is 5y.
  • NOTE: Students MUST be enrolled in at least 6 credit hours to be eligible for Federal Student Loans.

How does a borrower repay Perkins Loans?

  • Repayment begins 9 months after student graduates or is no longer enrolled in at least 6 credit hours.
  • Repayment is made to the university through ECSI.
  • Borrowers can view details on all previously borrowed federal loans at National Student Loan Data System (NSLDS)

Private or alternative loans are nonfederal loans issued by a lender such as a bank or credit union. These loans often have variable interest rates, require a credit check, and may not provide the benefits of federal student loans. Requirements, terms, and policies vary from lender to lender.

A quick Internet search will provide you with numerous private alternative student loan programs. It is in your best interest to consider private alternative education loans only after all other types of federal options have been exhausted. Contact ETSU Financial Aid to discuss financing options that are most suitable for your needs.

Private funding is generally based on a student’s credit and current debt. If you are a student seeking private funding, consider using a cosigner. A cosigner may lower the long-term cost of the loans and hasten the approval process.

It is important to pay careful attention to the details of the loan program, such as interest rates, fees, payment obligations, as these details can be drastically different depending on the loan program and lender. Keep in mind that most alternative loans do not offer deferment or forbearance options should you fail to repay the loan according to the loan program’s payment obligations.

Find out more information about private or alternative loans.

Students also have the option of applying for university sponsored loans.  The E.G. Hughes Kick-start Loan, The E.G. Hughes Enrollment Loan, The University Short Term Loan, the E.G. Hughes Emergency Event Loan and the Study Abroad Bridge Loan.

There are several loan types available which cover specific circumstances.  For example, there are loans to help cover 

 

Helpful Links and Resources

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Government Loan Information

Visit the Department of Education Federal Student Aid website for more information about loans.

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Direct Loan Help

If you have questions about your Master Promissory Note and/or Direct Loans, call Direct Loan Applicant Services at 1-800-557-7394.

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Finding My Loan Information

Direct Loan and Perkins Loan information is submitted to and accessible on the National Student Loan Data System (NSLDS).

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