Beginning Fall 2010, ETSU Quillen College of Medicine (School Code E00171) began using the Federal Direct Loan Program administered by the U.S. Department of Education in order to make the student loan process as easy as possible. All students (including new, transfer, and continuing) must have their subsidized and unsubsidized Stafford Loans and Graduate PLUS Loans borrowed/processed through the Federal Direct Loan Program .
All federal loan borrowers must complete the Direct Loan Master Promisory Note (MPN) and Entrance Loan Counseling .
Federal Direct Loan Program
Loans awarded based on a student's dependency status, financial need, cost of attendance, and grade level. These loans will be subsidized when based on need, and the federal government will pay the interest while the student remains enrolled at least half-time. Unsubsidized loans are also available based on the student's cost of attendance and other financial aid. These loans require the student to pay or accrue the interest while enrolled, although the principal amount of the loan is deferred. Borrowers begin repaying both subsidized and unsubsidized Federal Direct loans at the end of at least half-time enrollment.
Interest Rate on Stafford and Graduate Plus Loans
On February 8, 2006 President Bush signed the Deficit Reduction Act which set the interest rates for the Federal Stafford and Federal Graduate Plus loan programs. Interest rates for Stafford loans disbursed on or after July 1, 2006 will be at a 6.80 percent fixed rate. Interest rates for Graduate Plus loans will be fixed at 7.90 percent fixed rate.
For Stafford loans disbursed July 1, 1998 through June 30, 2006 the interest rate is variable. This rate is based on the final auction of 90-day Treasury Bills held prior to June 1.
Federal Direct Loan Origination Fee Changes
Due to the Federal Sequester, any federal loans that are disbursing for the first time on or after October 1, 2014 will receive a new increased origination fee of 1.073% for the Stafford Loans and 4.292% for the Graduate Plus Loans. Those loans that have already had a first disbursement before October 1, 2014 will be charged the original 2014-2015 academic year origination fee (1.072% for Stafford Loans and 4.288% for Graduate Plus Loans) for any subsequent disbursements.
Rights and Responsibilities
Here you can find your Student Borrower Rights and Responsibilities Statement .