Loans
Beginning Fall 2009, ETSU Main Campus (School Code 003487) will be using the Direct Loan Program administered by the U.S. Department of Education in order to make the student loan process as easy as possible. All students (including new, transfer, and continuing) and parents who choose to borrow through student loan programs, except the Alternative/Private loan industry, must have their Stafford and PLUS Loans borrowed/processed through the Direct Loan Program.
**This eliminates one step in the process, since you will not need to select a lender for your loans.**
- All Stafford and/or PLUS borrowers must complete the Direct Loan Master Promissory Note (MPN)
- New Stafford borrowers must complete Entrance Loan Counseling
If you are a continuing student and you previously borrowed a student loan from a lender on ETSU’s lender list, your lender will automatically be notified that you are still attending school. You will receive an automatic deferment of repayment on your previous loan while you are attending college. You must be enrolled in and attending at least 6 credit hours every semester to receive an automatic deferment.
If you have both Direct Loans and loans from other lenders, before your repayment is scheduled to begin you can apply to consolidate your loans. This can greatly reduce the monthly payment on your loans. For more about Direct Consolidation Loan program,, click here.
Students MUST be enrolled in at least 6 credit hours before loan funds will be disbursed from the Direct Loan Program.
The Free Application For Federal Student Aid (FAFSA) must be completed before eligibility can be determined. A variety of loan programs are available.
Federally funded loans borrowed from the university at five percent interest for both undergraduate and graduate students. Repayment begins nine months after a student ceases at least half-time attendance.
Federal Stafford Loan Program:
Loans awarded based on a student's dependency status, financial need, cost of attendance, and grade level. Both undergraduate and graduate students may borrow in this program. These loans will be subsidized when based on need, and the federal government will pay the interest while the student remains enrolled at least half-time. Unsubsidized loans are also available based on the student's cost of attendance and other financial aid. These loans require the student to pay or accrue the interest while enrolled, although the principal amount of the loan is deferred. Borrowers begin repaying both subsidized and unsubsidized Stafford loans at the end of at least half-time enrollment. Effective July 1, 2009, the interest rate for undergraduate students is a fixed 5.6% for Subsidized Federal Stafford Loans and a fixed 6.8% for Unsubsidized Federal Stafford Loans. For graduate students, the interest rate for both Subsidized and Unsubsidized Federal Stafford is a fixed 6.8%.
PLUS loan program to help graduate students and professional students pay for college. With benefits similar to the traditional PLUS loan for parents, the graduate student PLUS loan program (Grad PLUS) allows graduate students or professional students to borrow up to the cost of education at a particular institution minus any other financial aid. The interest rate is a fixed 7.9%.
Federal Parent Plus Loan Program:
Federal PLUS loans are available to parents of undergraduate students. Repayment begins 60 days after the loan is disbursed, and continues while the student is enrolled. The maximum repayment period is 10 years. The interest rate is a fixed 7.9%.
Counselors are available to assist students with any questions or concerns regarding their eligibility. Contact Us!