PSTCC Summer 2008 Stafford Loans

Subsidized Stafford Loans

The Federal Subsidized Stafford Loan is a low-interest loan made to the student by a lending institution. The student must demonstrate financial need as determined by the Free Application for Federal Student Aid (FAFSA). The U.S. Department of Education pays the interest on these loans while the student is enrolled for at least 6 hours, during the six-month grace period and during authorized periods of deferment.

Steps for Applying for a Student Loan:

If you want to apply for a student loan, you will first need to complete the FAFSA online. You must be taking at least six credit hours to apply for a student loan.

The first step to apply for a student loan is to complete the Loan Request Form . You can down load this form from our website or come into the financial aid office and get a paper copy. Once you complete this form, you must turn it back into the financial aid office.

You will then need to electronically sign your promissory note. We no longer accept paper applications. Your student loan promissory note can be completed online by going to https://clipslink.guarantorsolutions.com/esign/ and following the directions.

Once you have electronically signed your promissory note, you will need to complete “Entrance Counseling.” The entrance counseling will go into detail about your student loan and cover topics such as your rights and responsibilities, repayment options, and so on. To complete entrance counseling, go to

http://mapping-your-future.org/oslc/index.cfm?act=Intro&OslcTypeID=1

and follow the directions.

We will let you know by mail if your student loan application was approved or denied.

Loan Information:

Federal Student Loan Interest Rates Effective July 1, 2007 through June 30, 2008:

6.8% Federal Stafford Loans During in-school, grace and deferment.

6.8% Federal Stafford Loans During repayment.

Maximum Annual Loan Amounts for Full-Time Students are as Follows:

First-year students (0 to 30 hours)..........................$3500

Second-year students (30 or more hours)...............$4500

A student may borrow a loan a second time at the same grade level if needed. Aggregate loan limits for Pellissippi State students including previous loans borrowed are as follows:

First-year students (0 to 30 hours)..........................$7000

Second-year students (30 or more hours)...............$9000

Disbursement Dates

A loan that is certified for two semesters will be disbursed after the 14th day of classes in each of the semesters. Loans certified for only one semester will be disbursed one-half after the 14th day of classes, and one-half midway through the semester.

Receiving Funds

All funds are received at the Hardin Valley Road Campus in the Cashier's Office. If you need your check sent to either the Blount County Campus, Division Street Campus, or Magnolia Avenue Campus, check with the Cashier's Office at those locations.

First-year Students and First Time Borrowers

Pellissippi State may not release the first installment of the Stafford Loan proceeds to a first-year (less than 30 hours completed), first-time undergraduate borrower until 30 days after the first day of the semester.

Returning Checks to the Lender

Checks not picked up within this 30-day period must be returned to the lender. If your loan was received at Pellissippi State by electronic funds transfer (EFT), you have 10 days to pick up your excess financial aid before it is returned to the lender.

Loan Cancellation

You should notify the Financial Aid Office in writing if you should decide that you do not want your loan check or are expecting a second disbursement for the next semester and have decided not to return to Pellissippi State. Once notified, we will return your check to your lender and/or make the appropriate adjustment to your financial aid records.

Choosing a Lender

On the "Loan Request" form we have several different lenders that you can choose from. However, you are not restricted to those specific lenders. If you would like to use a different lender, please check "Other" on the form and write the lender's name in. For information on how we selected the lenders that are on our "Loan Request" form, please review:

How Does PSTCC Select Its Preferred Lenders?

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Updated May 28, 2008