Student Loan Programs
William D. Ford Federal Direct Loan Program TSC provides loan funds directly from the Federal Government under the William D. Ford Federal Direct Loan Program.
To receive a Direct Loan, all students must complete the following requirements available online:
- Review and accept loan offer via TSC Self-Service;
- Complete loan entrance counseling; and
- Complete a new Electronic Master Promissory Note (eMPN). Direct Student Loan Programs (Subsidized and Unsubsidized) Direct Student Loans are low-interest student loans certified by
TSC and guaranteed by the federal government.
For subsidized loans, the federal government pays the interest while the student is enrolled at least halftime. Unsubsidized loans, on the other hand, require students to make interest payments or to
agree to capitalize the interest, which is deferred but becomes part of the principle. Dependent students may borrow subsidized loans up to $3,500 during their grade level one (1) year and up to $4,500 in grade level two in addition to $2,000 of unsubsidized loans each year. Independent students can borrow up to the same level of subsidized amounts per grade level, and an additional $6,000 in unsubsidized loans per year. Because subsidized loans are based on financial need, the Financial Aid Office establishes the amount students are eligible to borrow. Students must complete a counseling session concerning the loan, repayment of which begins six (6) months after the student leaves school or drops below half-time status.
There is a limit to the maximum period of time (measured in academic years) students, who are borrowing subsidized loan for the first-time starting July 2013, can receive Direct Subsidized Loans. In
general, students may not receive Direct Subsidized Loans for more than 150% of the published length of the program of study. This is called the “maximum eligibility period.” For example, if a student enrolls in a two-year associate degree program, the maximum period for which the student can receive Direct Subsidized Loans is three years (150% of 2 years = 3 years). If a student enrolls in a one-year certificate degree program, the maximum period for which the student can receive Direct Subsidized Loans is 1.5 years (150% of 1 year = 1.5 years).
The maximum eligibility period is based on the published length of the student’s current program of study. This means that the maximum eligibility period can change if a student changes programs. In addition, if a student received Direct Subsidized Loans for one program and then changes to another program, the Direct Subsidized Loans received for the earlier program will generally count against the new maximum eligibility period.
Federal Direct PLUS Loans Program
The PLUS Program allows parents to borrow up to the cost of education for each dependent enrolled in college at least half time. Repayment for parent borrowers begins sixty (60) days after disbursement of the entire loan amount. The PLUS loan amount, together with all other financial aid, may not total more than the student’s Cost of Attendance.
Consolidation Loan Program
Consolidation Loans may be arranged to combine loans made to a student under Title IV programs. These loans provide repayment periods appropriate for the total amount outstanding. For example, a student whose total loan debt exceeds $7,500 may be given a repayment period longer than ten (10) years. Repayment of a Consolidation Loan must begin within sixty (60) days after the selected loans have been consolidated. Students must contact their lenders to find out if they qualify for a Consolidation Loan.