Student Loans are a type of aid that students must repay to a lender with interest.
- Federal Direct Loans
- Stafford Loans
- Interest Rates
- Enrollment Requirements
- Student Requirements
- Guide to Repaying Your Loans
- Helpful Links
The FDL program offers subsidized, unsubsidized and PLUS loans through the federal treasury for students enrolled at least half-time in an eligible program. Dependent undergraduate students can borrow up to $5,500 if they are first-year students enrolled in a program of study that is at least a full academic year, and $6,500 if they have completed their first year of study and the remainder of their program is at least a full academic year. The maximum for an independent undergraduate student loan is up to $9,500 for the first year and up to $10,500 for the second year. A student completing prerequisites for an approved program of study may receive up to $2,625 for one academic year.
The aggregate amount a student will qualify for is $31,000 for a dependent undergraduate and $57,500 for an independent undergraduate (only $23,000 of this amount may be in subsidized loans). Regardless of the type of loan students borrow, they must complete entrance counseling before they can be given their first loan disbursement, and they must complete exit counseling upon dropping below half-time status, such as withdrawal, graduation or transfer. These counseling sessions are available online at StudentLoans.gov and provide student borrowers with important information about their loan, borrower rights and repayment.
According to federal guidelines, all student loans must come in two disbursements per loan period, and delivery to TCC for first year, first time borrowers must be delayed for thirty days. All students must complete a Master Promissory Note prior to receiving any loans from TCC. Master Promissory Notes may be completed at StudentLoans.gov
A subsidized loan is awarded on the basis of financial need. Student borrowers will not be charged any interest before they begin repayment or during authorized periods of deferments. The federal government “subsidizes” the interest during these periods.
An unsubsidized loan is not awarded on the basis of need. Interest is charged from the time the loan is disbursed until it is paid in full. If interest is allowed to accumulate, it will be capitalized — that is, the interest will be added to the principal amount of the loan and additional interest will be based upon the higher amount.
Both a subsidized loan and an unsubsidized loan may be received for the same enrollment period.
- PLUS Loan: PLUS loans enable parents with good credit histories to borrow to pay the education expenses of each child who is a dependent undergraduate student enrolled at least halftime. The yearly limit on a PLUS Loan is equal to the student’s cost of attendance at TCC minus any other financial aid he or she receives. Interest is charged on the loan from the date the first disbursement is made until the loan is paid in full. Parents will be notified by the service provider of interest rate changes throughout the life of their loan. Loan funds are sent to TCC by the U.S. Department of Education in two installments.
The current loan rates for Federal Stafford Loans:
Direct Subsidized: 3.86 percent
Unsubsidized Loans: 3.86 percent
Direct PLUS Loan: 7.9 percent
Students must be enrolled at least half-time in a semester to be receive loans. Half-time status is defined as six credit hours per term. A students will not receive his loans until he is attending at least six hours for the semester. Loan disbursement may not occur during the beginning of the semester if the student does not start attending at least six hours until later in the semester.
First-time student loan borrowers at TCC are required to participate in Entrance Counseling regarding their student loan before loan funds may be delivered. Online entrance counseling may be completed at Studentloans.gov. All students must complete a Master Promissory Note (or MPN) once every 10 years, which can also be completed at Studentloans.gov. According to federal guidelines, student loans must always come in two disbursements per loan period, and delivery to first-year, first-time borrowers must be delayed for at least 30 days. Before leaving TCC, student must also complete Exit Counseling.
Once borrowers drop below half-time status, they must complete Exit Counseling. Exit Counseling will inform the student of their rights and obligations related to the repayment of loans.
All student loans must be repaid, though there are numerous factors involved in when repayment begins and how much a student should pay in monthly payments. This guide will give students an overview of what is expected before and during loan repayment.