Loan Programs

For student who do not qualify for grants or scholarships or require additional funds to meet their educational expenses, there are various loan programs to help fund educational needs.

Pellissippi State participates in the Federal Direct Student Loan Program which includes subsidized and unsubsidized student loans as well as Parent Plus loans. 

STUDENT LOANS:            

  • unlike grants and scholarships, LOANS MUST BE REPAID
  • to be eligible, students must be enrolled at least half-time (six or more credit hours), be in good standing, be degree seeking, and have a verified FAFSA on file
  • repayment begins six months after graduating, stopping attendance or dropping below half-time

To apply for a student loan,


  • for parent borrowers to assist the dependent student with educational expenses
  • repayment begins 60 days after disbursement
  • the annual limit is the cost of education minus any other financial assistance the student is receiving

To apply for a parent loan,


A private alternative loan is a non-federal educational loan through a private lending institution, hence their terms and conditions will vary.  An alternative loan can be a viable option for students who do not meet the eligibility requirements for a federal student loan.  These loans are available for students, parents, other family members, or friends, and often require a cosigner.   The annual limit is the cost of education minus any other financial assistance the student is receiving.  A borrower should NEVER consider borrowing a private loan until all federal loan options have been exhausted. For more information on the differences between federal student loan programs and private education loans, visit the Department of Education's Federal Aid First website.

Once a lender approves a private loan, PSCC will be contacted to obtain verification of student eligibility. After all PSCC charges have been paid, any remaining loan funds will be released to the student on the scheduled disbursement dates through direct deposit or a mailed paper check.

PSCC does not endorse any alternative loan lenders so borrowers are encouraged to research which private loan best meets their needs.  Also, PSCC is not responsible for the timeliness of private loans. Below are lenders that PSCC students and other borrowers have used in the past. The contact information is provided as a service and not as an endorsement of the lender. A borrower may choose one of these lenders or any other lender of their choice. For all questions related to private loans, the borrower must contact their lender.

Regions Bank
Sallie Mae
Wells Fargo



  • Federal regulations require student loans be disbursed in two equal disbursements.
  • A Fall/Spring loan will be disbursed evenly between the two semesters, one half in the Fall semester and one half in the Spring semester.
  • A Fall Only, Spring Only, or Summer Only loan is also required to be disbursed in two equal disbursements.  The first disbursement occurs approximately two weeks after classes start.  The second disbursement occurs in the middle of the semester.
  • Disbursement dates are located on the Financial Aid website under Disbursement Dates.


If a student drops below half-time, withdraws, graduates, stops attending, or does not return to PSCC (even if the student plans to attend another school), the Federal Government requires the student to complete Exit Loan Counseling. Exit counseling gives students important information about repaying their student loans.