Loans

Federal Student Loans

Federal education loans should be the first form of financing considered when a family is deciding whether or not to borrow funds to help pay for a student's cost of education.

• Undergraduate and graduate students can apply for Federal Direct Stafford Loans
• Graduate students and parents of dependent undergraduate students can apply for funds through the PLUS Loan program.

Federal student loans are borrowed through programs supported by the federal government. These loans usually have low interest rates and offer attractive repayment terms, benefits, and options, and repayment generally does not begin until after the student leaves school. See the current interest rates for federal loans.

To be eligible for any of these federal loans, you must

• complete the Free Application for Federal Student Aid (FAFSA)
• be enrolled at least half-time
• meet general eligibility requirements for financial aid.

There are several kinds of Federal Loans available: (Compare loan types)

• [for Undergraduate and Graduate Students] Federal Direct Stafford
• [for Parents or Graduate Students] Federal Direct PLUS Loans

If you already have at least one student loan or a Federal Family Education Loan you may qualify for a consolidation loan

• Direct Consolidation
• Special Direct Consolidation

• Federal Direct Plus

  What is the Grad PLUS Loan?

  • Requires credit approval.
  • Administered through the Direct Loan Program.
  • View current interest rates
  • Interest charged to the student from the time the loan is disbursed until it is paid in full. If the student allows the interest to accumulate, it will be capitalized (the interest will be added to the principal amount of the loan and additional interest will be based upon the higher amount). The student has the option of paying the interest while in school on a monthly or quarterly basis, so it will not accumulate.

  What is the Parent PLUS Loan?

  • Requires credit approval.
  • Administered through the Direct Loan Program.
  • Loan is taken by the parent on behalf of his/her dependent student.
  • View current interest rates
  • Interest charged to the parent from the time the loan is disbursed until it is paid in full. If the student allows the interest to accumulate, it will be capitalized (the interest will be added to the principal amount of the loan and additional interest will be based upon the higher amount). The parent has the option of paying the interest while in school on a monthly or quarterly basis, so it will not accumulate.
  • After the student's account is paid in full, all PLUS Loan refunds will be mailed from ETSU directly to the parent borrower.

  How does a graduate/professional student or parent apply for a PLUS Loan?

  • Complete the Free Application for Federal Student Aid (FAFSA) online.
  • Once a PLUS Loan has been awarded on the student's GoldLink account, the graduate/professional student or parent should follow the PLUS Loan Procedures.

  How does a borrower repay Federal Direct PLUS Loans?

  • These loans are repaid through the Direct Loan Program.
  • Repayment generally begins 60 days following the final disbursement for the academic year. You can apply for deferred repayment through the Direct Loan Program.
  • Borrowers can view details on all previously borrowed federal loans at the Federal Student Aid website.
• Direct Stafford Subsidized & Unsubsidized Loans

  What is the Subsidized Direct Loan?

  • Need-based loan administered through the Direct Loan Program.
  • "Need" is determined by the FAFSA.
  • View current interest rates
  • Interest is deferred until after the student graduates or is no longer enrolled in at least 6 credit hours.
  • Awarded based on financial need, dependency status, cost of attendance, and grade level.
  • Limits for Financial Aid

  What is the Unsubsidized Direct Loan?

  • Non-need based loan administered through the Direct Loan Program.
  • View current interest rates
  • Interest is charged to the student from the time the loan is disbursed until it is paid in full. If the student allows the interest to accumulate, it will be capitalized (the interest will be added to the principal amount of the loan and additional interest will be based upon the higher amount). The student has the option of paying the interest while in school on a monthly or quarterly basis, so it will not accumulate.
  • Awarded based on dependency status, cost of attendance, and grade level.
  • Limits for Financial Aid 

  How do I apply for Subsidized/Unsubsidized Direct Loans?

  • Complete the Free Application for Federal Student Aid (FAFSA) online.
  • Follow the step-by-step instructions for getting a direct loan, to help you through the process

  How does a borrower repay Subsidized/Unsubsidized Direct Loans?

  • These loans are repaid through the Direct Loan Program.
  • Repayment begins 6 months after student graduates or is no longer enrolled. 
  • Borrowers can view details on all previously borrowed federal loans on the Federal Student Aid website..
• Perkins Loans

  
  FEDERAL PERKINS LOAN PROGRAM ENDED SEPTEMBER 30, 2017
  If you have received a Perkins Loan in the past and have questions, please contact ECSI Federal Perkins Loan Servicer. 
  You may also contact the ETSU Bursar’s Office at 423-439-4212, or Bursar@etsu.edu

   

• Direct Consolidation Loans

   

  Direct Consolidation Loans

Private/Alternative Loans

Private or alternative loans are nonfederal loans issued by a lender such as a bank or credit union. These loans often have variable interest rates, require a credit check, and may not provide the benefits of federal student loans. Requirements, terms, and policies vary from lender to lender.

A quick Internet search will provide you with numerous private alternative student loan programs. It is in your best interest to consider private alternative education loans only after all other types of federal options have been exhausted. Contact ETSU Financial Aid to discuss financing options that are most suitable for your needs.

Private funding is generally based on a student’s credit and current debt. If you are a student seeking private funding, consider using a cosigner. A cosigner may lower the long-term cost of the loans and hasten the approval process.

It is important to pay careful attention to the details of the loan program, such as interest rates, fees, payment obligations, as these details can be drastically different depending on the loan program and lender. Keep in mind that most alternative loans do not offer deferment or forbearance options should you fail to repay the loan according to the loan program’s payment obligations.

Find out more information about private or alternative loans.

University Sponsored Loans

Students also have the option of applying for university sponsored loans.  The E.G. Hughes Kick-start Loan, The E.G. Hughes Enrollment Loan, The University Short Term Loan, the E.G. Hughes Emergency Event Loan and the ETSU Education Abroad Early Deposit Advance Request .

There are several loan types available which cover specific circumstances.  For example, there are loans to help cover 

• emergency needs or unexpected expenses related to educational costs.  [University/EG Hughes Kick-start Loan]
• prior semester outstanding balances to the university [EG Hughes Enrollment Loan]
• paying fees by the fee payment deadline [University Short Term Loan]
• emergency situations occur during the semester [E.G. Hughes Emergency Event Loan]
• paying for advance fees related to studying abroad [Early Deposit Advance Request Form available in Bucs Abroad Portal]