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.

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 Unsubsidized Loans and 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 Direct Loans will be unsubsidized loans and 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 Unsubsidized and Plus 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.

Interest Rate on Direct Unsubsidized and Graduate Plus Loans

Interest rates for Direct Loans disbursed July 1, 2022 thru June 30, 2023 **CURRENT** are 6.54% fixed rate for Unsubsidized and 7.54% fixed rate for Plus.  

Interest rates for Direct Loans disbursed July 1, 2021 thru June 30, 2022 are 5.28% fixed rate for Unsubsidized and 6.28% fixed rate for Plus.

Interest rates for Direct Loans disbursed prior to July 1, 2021 are 4.30% fixed rate for Unsubsidized and 5.30% fixed rate for Plus.

For Federal 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

Loans disbursed on or after Oct 1st, 2019 and before Oct 1st, 2020 will have an origination fee of 1.059% for Direct Unsubsidized Student Loans and 4.236% for Direct Plus Student Loans.

New Rates: Loans disburing on or after Oct 1st, 2020 and before Oct 1st, 2023 will have an origination fee of 1.057% for Direct Unsubsidized Student Loans and 4.228% for Direct Plus Student Loans.

Rights and Responsibilities

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