Federal Stafford Loans

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Federal Stafford Loans

The Federal Stafford Loan is a low—interest loan made to the student by a lending institution and is either subsidized or unsubsidized, or a combination of both, based upon need. The amount disbursed will be .5% less than the amount requested, due to an origination fee set by the Department of Education and effective through June 30, 2010.

Stafford Subsidized Loan (FDLP and FFEL):

A federally subsidized student loan is made on the basis of the student's financial need and other specific eligibility requirements. Stafford Subsidized loans have subsidized interest, which means that the federal government pays the interest on these loans while borrowers are enrolled at least halftime, during the six—month grace period, or during authorized periods of deferment. The current interest rate is 5.6%, and is effective through June 30, 2010. Stafford Subsidized loans are available to undergraduate and graduate students while the student is in school.

Stafford Unsubsidized Loan (FDLP and FFEL):

These loans are made to borrowers meeting specific eligibility requirements. Interest is charged throughout the life of the loan. The current interest rate is 6.8%, and is effective through June 30, 2010. The borrower may choose to pay the interest charged on the loan or allow the interest to be capitalized (added to the loan principal).

For both subsidized and unsubsidized loans, the borrower begins repayment after the six month grace period. This grace period begins upon graduation, withdrawing from school, or dropping below half-time.

Steps for Applying:

Have you received a loan at
Pellissippi State Community College before?

YES

Complete the 2009 -2010 FAFSA
Complete the Loan Request Form
Choose a lender and proceed to their MPN link below ONLY if you are using your lender for the first time.

Complete the 2009-2010 FAFSA
Complete the Loan Request Form
Complete online entrance counseling
Choose a lender and proceed to their MPN link below.

Preferred Lenders (in alphabetical order)

Please be aware that the benefits offered by lenders to student loan borrowers vary and are subject to change. Before selecting a lender, you may wish to contact them and review their borrower benefits to determine which one best meets your educational borrowing needs.
The Common Lender list is provided because these lenders have demonstrated their commitment to offering our students the best overall terms and services over the life of their loan.
If you do not see your lender in the list below, you may apply directly with them, but it will be your responsibility to make sure the lender contacts us with the pertinent information to certify your loan.
Federal regulations require all first-time student loan borrowers to complete Entrance Loan Counseling before receiving the first disbursement of your loan proceeds.
Federal regulations require all student loan borrowers to complete Exit Loan Counseling whenever you drop below half-time enrollment status, withdraw, or graduate.

	1-800-848-0979 Educational Loans borrowed from the United States Department of Education are serviced by the United States Department of Education MPN Link
	Lender Code: 831453 1-800-337-1009 Educational Loans borrowed from Edamerica are serviced by Edfinancial Services MPN Link
	Lender Code: 810563 1-800-337-1009 Educational Loans borrowed from First Tennessee are serviced by Edfinancial Services. MPN Link
	Lender Code: 833669 1-888-486-4722 Educational loans Borrowed from Nelnet are serviced by Nelnet. MPN Link
	Lender Code: 810612 1—888—272—5543 Educational Loans borrowed from Regions Bank are serviced by SallieMae. MPN Link
	Lender Code: 802218 1—888—272—5543 Educational Loans borrowed from SallieMae are serviced by SallieMae. MPN Link

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