Financial Aid - Loans

Loans

All students are eligible for some type of student loan provided they are not in default on any outstanding student loans. There are several types of loans available to Tennessee Tech students, including Federal Direct Stafford Loans, Parent PLUS Loans, Grad PLUS Loans, and Alternative Loans.

Please note that accepted Federal Direct Stafford Student Loans (Subsidized and Unsubsidized), Parent PLUS Loans, and Grad PLUS Loans are submitted to the National Student Loan Data System (NSLDS) and are accessible to guaranty agencies, lenders, and institutions determined to be authorized users of the data system.

Types of Loans

First Time Borrowers

First-time student loan borrowers are required to complete Entrance Counseling and sign a Master Promissory note before their accepted Direct Stafford Loans will pay towards their balance. Students can complete both by visiting studentaid.gov.


Annual Student Loan Acknowledgment (ASLA)

Each year you accept a new federal student loan, it is recommended that you complete the Annual Student Loan Acknowledgment. By doing so, you acknowledge that you understand your responsibility to repay your loan.  If you have existing federal student loans, you will be acknowledging that you understand how much you owe and how much you are eligible to borrow.  You will also see other federal student aid information, including the interest rates and repayment options to make managing your student loans easier. This recommendation also applies to any parent accepting a Parent PLUS Loan. Please visit the Department of Education's ASLA page for more information.


Maximum Federal Borrowing Limits

Please take note of the following maximum federal borrowing limits for each class level and student status. These limits are effective for the 12 month academic year, beginning with Fall Semester and continuing through the Spring and Summer Semesters. Below are the current amounts beginning July 1, 2008 (unchanged as of December 18, 2024).

  Dependent Independent
Freshman (less than 30 earned hours) 5,500 9,500
Sophomore (earned between 30-59 hours) 6,500 10,500
Junior or Senior (earned 60 hours or more) 7,500 12,500
Graduate - 20,500

If you borrow the maximum for your class level and student status during the Fall and Spring semesters of the academic year, you will not be able to use a student loan for the Summer semester. For example, a dependent sophomore student who is eligible to borrow $6,500 for the academic year could borrow:

 Example 1

Fall Spring Summer Total
$3,250 $3,250 0 $6,500

Example 2

Fall Spring Summer Total
$2,500 $2,500 $1,500 $6,500

There are also federal limits on the maximum aggregate (total) amount you may borrow. Dependent undergraduate students may not borrow more than a total of $31,000 (with no more than $23,000 being subsidized). Independent undergraduate students may not borrow more than a total of $57,500 (with no more than $23,000 being subsidized). Graduate students may not borrow more than a total of $138,500 (including loans borrowed as an undergraduate).


Special Programs You May Qualify For

Teacher Loan Forgiveness

If you are an education major, you may have heard about the Teacher Loan Forgiveness program, which can forgive up to $5,000 of a qualifying Federal Direct Stafford Loan. The Teacher Loan Forgiveness Application contains detailed program regulations and information, so make sure to read more about the program before applying. Please send completed applications to your designated student loan lender, not Tennessee Tech University.

Veterans Benefits Deferment

If you are receiving education benefits from the U. S. Department of Veterans Affairs or other governmentally funded education assistance, you may be eligible to defer your tuition payment until the last day of the semester. You must file a formal application within the first two weeks of the semester for this. To see if you are eligible please visit the Tennessee Tech Military & Veterans Affairs page.


Tennessee Tech Official Cohort Default Rate

The US Department of Education tracks the Official Cohort Default Rate for Postsecondary Schools. Those interested can obtain that information here. Tennessee Tech's OPE-ID is 003523.

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