Private and Federal Student Loans

Private Student Loans

Alternative student loans are privately funded loans that are NOT part of the federal student loan program. Private loans are generally more costly than federal loans and may be available to both students and parents who need assistance beyond their federal and state financial aid eligibility. They are offered by banks, credit unions and other lending institutions. Each private loan lender determines the interest rates, fees and eligibility criteria. All private loans require a credit check to be performed to determine eligibility. Tennessee State University has electronic processing with these lenders which reduces processing time, however, we do not endorse or recommend any of these participants and the list is provided solely for your convenience. You may choose a lender that is not on this list, however, you must provide us the certification information if you do so.

Apply for Private Loan Once you click this link you will be taken to an external site titled "FASTChoice." Click "Continue" to review the borrowing essentials information which is 5 screens of information related to student borrowing. Once you have reviewed the information you will be taken to our custom lender list.

Federal Student Loans

Federal Direct Student loans are made available through the William D. Ford Federal Direct Loan Program. This program offers two types of Federal Direct Loans: subsidized and unsubsidized loans. These loans must be used for educational expenses during attendance at Tennessee State University. There is a grace period of 6 months after graduation or dropping below half-time attendance before repayment of the principal of the Federal Direct Student Loan begins. Loan amounts are awarded based on dependency status and grade level and cannot exceed the established cost of attendance for the school, including other aid received. Your TSU financial aid award offers may include both subsidized and unsubsidized loans.

The federal Stafford loan programs carry both annual and cumulative(lifetime) limits. Eligibility for all Federal Direct Loans will be based on cost of attendance, the estimated family contribution (EFC) as determined by FAFSA, other aid received, and the loan limits set by the U.S. Department of Education. Students may never qualify for more than the cost of attendance for the college or the annual loan limit. The charts below show the maximum amounts you may borrow. For additional information on federal student loans, you may visit studentaid.gov

Annual Federal Stafford Loan Limits

**Dependent student annual loan limits.**
Dependent Students (except in cases of Parent PLUS denial)	Subsidized¹	Additional Unsub Eligibility	Current Combined Maximum
Freshman (up to 30 semester hours)	$3,500	$2,000	$5,500
Sophomore (30-59 semester hours)²	$4,500	$2,000	$6,500
Junior or Senior (60+ semester hours)	$5,500	$2,000	$7,500

**Independent student ( and dependent student with a Parent PLUS denial) annual loan limits.**
Independent Students (& Dependent Students with a Parent PLUS denial)	Subsidized¹	Additional Unsub Eligibility	Current Combined Maximum
Freshman (up to 30 semester hours)	$3,500	$6,000	$9,500
Sophomore (30-59 semester hours)²	$4,500	$6,000	$10,500
Junior or Senior (60+ semester hours)	$5,500	$7,000	$12,500
Graduate Student		$20,500	$20,500³

Subsidized (interest-free for the student while in school) loan, unsubsidized (interest-bearing) loan, or a combination of both based on eligibility determined by financial need.
Students in associate degree programs cannot be classified higher than sophomore.
Beginning July 1, 2012, graduate and professional students will no longer be eligible for in-school subsidy; the maximum $20,500 in borrowing will be made available to students in unsubsidized (interest-bearing while in school) loans based on eligibility.

Loan funding is also influenced by your attendance. Students who attend year-round should be aware of annual loan limits and the possible need to reserve some loan funds for summer.

Lifetime Aggregate Limits

	Maximum Subsidized + Unsubsidized	Maximum Subsidized **
Dependent Undergraduate	$31,000	$23,000
Independent Undergraduate	$57,500	$23,000
Graduate/Professional *	$138,500	$65,500

* The graduate debt limit includes loans received for undergraduate study.
** Graduate subsidized Stafford loans are no longer available as the federal government has ended the subsidized loan program for graduate students.

Federal Loan Counseling

Entrance Counseling

The federal government requires all students that are first-time borrowers for the Federal Direct Stafford Loan and the Federal Direct Grad PLUS loan to complete an Entrance Counseling before their loan can be processed. You will need your FSA ID/password to complete the online counseling. *Our office will be electronically notified.

Entrance Counseling for the Federal Direct Stafford or Grad PLUS Loans

Exit Counseling

The federal government requires all students who have stopped attending, applied to graduate (or whose enrollment has dropped below half-time) and have been a recipient of federal student loans. Repayment of federal student loans begins six months after graduation, or six months after a student is no longer enrolled at least half-time. This counseling is required for even if they plan to transfer to another school. You will need your FSA ID/password to complete the online counseling. *Our office will be electronically notified.

Exit Counseling for the Federal Direct Stafford or Grad PLUS Loans

Federal Master Promissory Note (MPN)

Master Promissory Note for Federal Direct Loans - The Federal Master Promissory Note (MPN) is a legal document in which you promise to repay your loans(s) and any accrued interest and fees to the U.S. Department of Education. You may receive more than one loan under an MPN over a period of up to 10 years if eligible to receive.