Loans & Federal Student Loans

Loans

Loans are money that is borrowed and you must pay back. Loans enable students and parents to borrow money from the federal government, state government, or private lenders. It is important for students and parents to be well informed of the terms and conditions of loans prior to borrowing. Loans offered by the federal government, usually call federal student loans, offer borrowers lower interest rates and have more flexible repayment options than conventional loans. Students may choose to decline or lower the amount of loan offered in your financial aid award package.

Federal Loan Changes

The legislation established new federal borrowing limits for certain students and parents:

Undergraduate Direct Subsidized and Unsubsidized Loan limits remain unchanged, but the new enrollment-based proration requirement applies to students enrolled less than full-time.
Graduate students who are subject to the new limits may borrow up to $20,500 annually in Direct Unsubsidized Loans, with a $100,000 graduate aggregate limit.
Eligible professional students may borrow up to $50,000 annually in Direct Unsubsidized Loans, with a $200,000 graduate and professional aggregate limit.
Graduate PLUS Loans have been eliminated for new graduate and professional borrowers beginning July 1, 2026.
Parent PLUS Loans are limited to $20,000 annually and $65,000 in total per dependent student for borrowers subject to the new limits.
Certain continuing students and parent borrowers may qualify for a temporary exception based on their enrollment and prior borrowing history. However, the new less-than-full-time proration requirement still applies to student borrowers who qualify for this exception

Alternative Loans

Alternative (private) loans are managed and processed by private lending institutions to be used for educational or housing costs after exhausting all federal and state financial aid options, or in conjunction with the financial aid award.

ELMselect is an online, lender-neutral, platform to display a historical list of lenders that students have used over the past five years. Visit ELMSelect to search for an Alternate Loan.

College Access Loan or the CAL loan program provides alternative educational loans to Texas students who are unable to meet the cost of attendance. Click here to find out more information about the requirements and qualifications of this program.

Is there a time limit on how long I can receive loans?

If you are a first-time borrower on or after July 1, 2013, there is a limit on the maximum period of time that you can received Direct Subsidized Loans. You may not receive Direct Subsidized Loans for more than 150 percent of the published length of your program. This time limit does not apply to Direct Unsubsidized Loans or Direct PLUS Loans.

What are the current interest rates?

Interest may accumulate interest while the student is attending school. Interest is a loan expense charged for the use of borrowed money. You will work with your loan servicer to choose a federal student loan repayment plan that’s best for you. Under certain conditions you may be eligible to have all or part of your loan discharged or forgiven (cancelled) .

Interest may accumulate interest while the student is attending school. Interest is a loan expense charged for the use of borrowed money. You will work with your loan servicer to choose a federal student loan repayment plan that’s best for you. Under certain conditions you may be eligible to have all or part of your loan discharged or forgiven (cancelled) . Other than interest, is there a charge for this loan?

Yes, there is a loan fee on all Direct Subsidized Loans and Direct Unsubsidized Loans. The loan fee is a percentage of the loan amount and is proportionately deducted from each loan disbursement. The percentage varies depending on when the loan is first disbursed.

What if my parents are ineligible for a Direct PLUS Loan?

You may be able to receive additional Direct Unsubsidized Loan Funds. The additional funds are determined by your year in school. Funds range from an additional $4000 to $5000 per year.

What steps should I take to apply for a loan?

Federal Subsidized and Unsubsidized Loans

The Free Application for Federal Student AID is the application for the Federal Direct Subsidized and Unsubsidized Loans. You will be awarded Federal Loans based on the information supplied on the FAFSA, your classification, eligibility, annual and aggregate loan limits.

Prior to receiving the loans you will be required to complete 2 steps and enroll in at least a half-time course load (6 hours for undergraduates):

Entrance Loan Counseling
Before you are allowed to borrow from the federal student loan programs, you must receive educational information concerning your rights and responsibilities. The entrance loan counseling session is designed to provide students with this information. This is a federal requirement that cannot be waived.
Master Promissory Note
The Master Promissory Note is a binding agreement between you and the federal government agreeing to the terms of the loan. Available after July 1 or each year.

Federal Direct Graduate PLUS Loan Programs

Graduate/Professional Students – you must be regularly admitted (conditional or unconditional) into a graduate or professional program for the period for which you are applying for the loan. Financial Aid will only be able to disburse a Graduate PLUS loan once all requirements have been completed.

Federal Direct Parent PLUS Loan Programs

Log onto www.studentaid.gov . Allow about 20 minutes for the completion of the application. Gather the following information prior to attempting to complete the application. DO NOT ENTER THE STUDENT’S NAME AS THE BORROWER ON A PARENT LOAN.

FSA User ID and Password. For the parent borrower completing the application.
the student information and
the borrower’s employment information.

Direct Loan Origination Fee Calculator

Use this calculator to determine the amount of money that you will either receive from your loan or the amount you need to request after the origination fee. All amounts below are represented in U.S. dollars.

Choose a loan type

Calculate the amount

Table-1
Amount Awarded
Fee ^*
Amount You Will Receive

Table2
Amount Needed
Fee ^*
Amount You Will Need to Request

^*The origination fee is charged by the Department of Education for each federal student loan you receive. It is a percentage of the total loan amount you are borrowing (request/awarded amount). The loan fee is deducted proportionately from each disbursement of your loan. This reduces the actual loan amount you receive (needed/received amount). The specific loan fee that you are charged will be included in a disclosure statement you will receive after the first disbursement of your federal student loan. You will be required to repay the request/awarded amount.

Financial Aid Resources

Forms Important Links Net Price Calculator Office of the Registrar Payment Student Accounting The Process Tigernomics TSU Policies & Resources Types of Aid Verification Withdrawal Info Work Study