Loans
Beginning Fall 2009, ETSU Main Campus (School Code 003487) began 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 subsidized and unsubsidized Direct Loans 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 Direct and/or PLUS borrowers must complete the Direct Loan Master Promissory Note (MPN)
- New Direct 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. Students are required to maintain regular and consistent attendance in all classes. Financial aid disbursements will be calculated on the student's class attendance. Students who drop a class, stop attending, or officially withdraw may owe money back to the federal financial aid programs, scholarships, or loan programs. Students should follow the procedures printed in the University catalogs for formally withdrawing from the University. Please contact a financial aid counselor and review the Bursar's Office Refund Policy before you drop a class, stop attending, or officially withdraw.
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.
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 Direct loans at the end of at least half-time enrollment. Effective July 1, 2009, the interest rate for undergraduate students is a fixed 4.5% for Subsidized Federal Direct Loans and a fixed 6.8% for Unsubsidized Federal Direct Loans. For graduate students, the interest rate for both Subsidized and Unsubsidized Federal Direct Loans 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%.
Special Direct Consolidation Loan Program:
The Department of Education is offering a short term consolidation opportunity from January 2012-June 2012. For more information visit the Student Aid on the Web site.
Direct Consolidation Loan Program:
You may be able to combine your existing Federal education loans into one new consolidated loan that offers several advantages. For more information, visit the Direct Consolidation Loan Program-Borrower Services website.
Federal Parent Plus Loan Program:
Federal PLUS loans are available to parents of dependent 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%.
*Note: Effective Fall 2010, after student's account is paid in full, all PLUS loan refunds will be mailed directly to the parent borrower from ETSU.
Alternative/Private Loans:
Before a lender can process a private/alternative loan, the applicant must complete a Private Education Loan Self Certification and submit it to the lender.