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Office of Financial Services

Student Affairs

Federal Direct Loans

For all incoming M1 students, please wait to complete these steps below until you have returned your signed award letter accepting student loans.


Beginning Fall 2010, ETSU Quillen College of Medicine (School Code E00171) began using the Federal 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) must have their subsidized and unsubsidized Loans and Graduate PLUS Loans borrowed/processed through the Federal Direct Loan Program .  

All federal loan borrowers must complete the Direct Loan Master Promissory Note (MPN) and Entrance Loan Counseling.

Federal Direct Loan Program
Loans awarded based on a student's dependency status, financial need, cost of attendance, and grade level. 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 Federal Direct loans at the end of at least half-time enrollment.

Direct PLUS Loans are federally guaranteed loans for graduate/professional students who have additional financial need beyond
what their Direct Unsubsidized Loans may cover.
To learn more about PLUS Loans, review SALTs article: Grad PLUS Loan: Before You Borrow.

Interest Rate on Stafford and Graduate Plus Loans
Interest rates for Stafford Loans disbursed prior to July 1, 2017 will be 5.31 percent fixed rate. Interest rates for Graduate Plus Loans will be 6.31 percent fixed rate. Interest rates for Stafford Loans disbursed on or after July 1, 2019 will be at a 6.0 percent fixed rate. Interest rates for Graduate Plus Loans will be fixed at 7.0 percent fixed rate.

For Stafford loans disbursed July 1, 1998 through June 30, 2006 the interest rate is variable. This rate is based on the final auction of 90-day Treasury Bills held prior to June 1.

Federal Direct Loan Origination Fee Changes
Due to the Federal Sequester, any new federal loan requests that disburse for the first time on or after October 1, 2016 will receive the new origination fee of 1.069% for the Direct Unsubsidized Loans and 4.276% for the Direct Graduate Plus Loans. Loans that were disbursed prior to October 1, 2016 will retain the original 2016-2017 academic year origination fee of 1.068% for Direct Stafford Loans and 4.272% for Direct Graduate Plus Loans. 

Rights and Responsibilities
Here you can find Student Borrower Rights and Responsibilities Statement information.

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