Thinking about a Student Loan?

Find the answers to your questions here!

Student and Parent Loans are available to assist you with your cost of attendance. Federal and private loans may be available to assist you.

Remember student loans are to help pay for your cost of attendance, educational expenses at ETSU, and they have to be paid back!

  • The percentage of borrowers that enter repayment and defaulting on their loans is 13.4% nationally .

The median federal loan borrowing for undergraduate students at ETSU is $14,462. The median graduation rate percentage of full-time students who graduate within 6 years at ETSU is 44.4%

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Types of loans and further information:

Federal Student Loans

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.

Students MUST be enrolled in at least 6 credit hours to be eligible for Federal Student Loans.

Below is the list of Federal Loans:

  • Stafford
  • Perkins
  • Direct Consolidation
  • Special Direct Consolidation

Federal Direct Stafford Subsidized and Unsubsidized Direct Loans

  • What is the Subsidized Direct Loan?

    • Need-based loan administered through the Direct Loan Program.
    • "Need" is determined by the FAFSA.
    • 3.86% fixed interest rate (accrues during repayment) 
    • 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.
    • Know Your Limits (a guide to financial aid limits)

    What is the Unsubsidized Direct Loan?

    • Non-need based loan administered through the Direct Loan Program.
    • 3.86% interest rate for undergraduate students and 5.41% interest rate for graduate students
    • 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.
    • Know Your Limits (a guide to financial aid limits)

    How do I apply for Subsidized/Unsubsidized Direct Loans?

    • Complete the Free Application for Federal Student Aid (FAFSA) online.
    • Accept all or part of the loans on GoldLink after they have been awarded.
    • Complete a Master Promissory Note (MPN) online.
      • Undergraduate and Graduate students applying for Subsidized and Unsubsidized Loans will only need to complete an MPN once every 10 years.
    • Complete Entrance Loan Counseling.
    • NOTE: Students MUST be enrolled in at least 6 credit hours to be eligible for Federal Student Loans.

    How does a borrower repay Subsidized/Unsubsidized Direct Loans?

     

Federal Direct PLUS Loans

What is the Grad PLUS Loan?

  • Requires credit approval.
  • Administered through the Direct Loan Program.
  • 6.41% interest rate
  • 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.
  • 6.41% interest rate
  • 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 student 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?

Comparison Chart of Federal Student Loan Types

Compare the Federal Loans before you make a decision. This comparison chart will give you the basics of each loan:

  • Interest Rates
  • Interest While You are in School
  • Repayment Grace Period
  • Processing Fee
  • and more! 

Questions about your MPN and/or Direct Loans

If you have questions about your Master Promissory Note and/or Direct Loans, call Direct Loan Applicant Services at 1-800-557-7394.

Federal Perkins Loans

What is the Federal Perkins Loan?

  • Need-based loan administered by the university through ECSI.
  • "Need" is determined by the FAFSA.
  • 5% interest rate.
  • Interest is deferred until 9 months after student graduates or is no longer enrolled in at least 6 credit hours.
  • Awarded based on application file completion date, exceptional financial need, cost of attendance, and funding level of the school from governmental funds.
  • Know Your Limits (a guide to financial aid limits)

How do I apply for a Federal Perkins loan?

  • Complete the Free Application for Federal Student Aid (FAFSA) online as soon after January 1st as possible and promptly follow up on your application in order to complete all requirements as early as possible.
  • Accept all or part of the loan on GoldLink after it has been awarded.
  • Complete a Perkins Master Promissory Note online. This must be done each year that a student is awarded and accepts the Perkins Loan. The ETSU School Code for Perkins MPN is 5y.
  • NOTE: Students MUST be enrolled in at least 6 credit hours to be eligible for Federal Student Loans.

How does a borrower repay Perkins Loans?

  • Repayment begins 9 months after student graduates or is no longer enrolled in at least 6 credit hours.
  • Repayment is made to the university through ECSI.
  • Borrowers can view details on all previously borrowed federal loans at National Student Loan Data System (NSLDS)

Private/Alternative Loans

Private/alternative student 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.

Direct Consolidation Loans

Direct Consolidation Loans

Special Direct Consolidation Loan Program

National Student Loan Data System (NSLDS)

Direct Loan and Perkins Loan information is submitted to and accessible on the National Student Loan Data System (NSLDS).

University Sponsored Loans