Loans

Federal Direct Stafford Loan

Allows students to borrow up to $3500 as a freshman and $4500 as a sophomore per academic year
Loans you are eligible to receive will be listed on your Chattanooga State Tigerweb self-service account
There is a grace period of 6 months after graduation or dropping below half-time attendance before repayment of the principal of the loan begins.

The Stafford subsidized loan is awarded on the basis of financial need as determined by the FAFSA.
The federal government pays the interest on the loan until the student begins repayment and during authorized period of deferment.
The interest rate for undergraduate students on new Direct Subsidized Loans first disbursed on or after July 1, 2012 will be a fixed interest rate of 6.8 percent.

The Stafford Unsubsidized loan is not based on financial need.
The student is responsible for accrued interest from the time the loan is disbursed until it is paid in full. You may choose to pay the interest as it accrues while you are enrolled, or you may defer the interest payments and allow them to accumulate. If you choose to pay the interest as it accumulates, you will repay less in the long run. If you defer the interest, you will increase the amount you have to repay.

The Parent PLUS loan is an unsubsidized loan for parents of dependent students. You may borrow up to your child's Cost of Attendance minus any other financial aid received. The student must be enrolled at least half-time (6 credit hours) to be eligible for the loan.
The Parent PLUS loan will be processed in two disbursements, typically, for the fall and spring semesters. The loan will begin accruing interest (7.9%) once the loan disburses and repayment will begin approximately 60 days after the full loan disburses.
Parent PLUS loan borrowers cannot have an adverse credit history (a credit check will be done). In addition, parents must not be in default on any federal education loans or owe an overpayment on a federal education grant.
Dependent students whose parents have applied for but were unable to get a PLUS Loan are eligible to receive additional Direct Unsubsidized Loan funds.
Submit an application for a Federal Direct Parent PLUS Loan – Credit approval is determined by the U.S. Department of Education.
A first-time Direct Parent PLUS loan borrower must complete a Master Promissory Note (MPN) with the U.S. Department of Education.

Complete the FAFSA
Loan eligibility will be listed on your Tigerweb self-service account
Before accepting a loan, determine what your expenses and resources will be for the upcoming year. Do not borrow more than you need!
Accept the appropriate loan amount for your educational needs
Accepted loan amounts will be electronically transmitted for approval to the U.S. Department of Education
Complete the Entrance Counseling - All students accepting a loan from the Federal Direct Loan Program for the first time must complete the Entrance Counseling
Complete a Master Promissory Note (MPN) with the U.S. Department of Education - All students accepting a loan from the Federal Direct Loan Program for the first time must complete a Master Promissory Note. You will need your U.S. Department of Education issued PIN to complete your MPN, if need assistance retrieving your PIN click here.

The first disbursement for first-time freshman applying for a student loan will be delayed 30 days from the first day of class.
Information on Financial Aid checks will be sent to the student's Tigerweb email account

The federal government requires all students who stop attending school to complete an exit interview. This exit counseling will give you important information about repaying your loan. This counseling is for students who drop below half-time, withdraw or graduate from Chattanooga State.
Complete the Federal Loan Exit Counseling

Must be registered full-time in order to be eligible for student loans.
See the Chattanooga State Course Catalog for your specific program hour requirements.
Tennessee Technology Students' second disbursement is available at the midpoint of the program.

Access your student loan account at the Direct Loan Servicing online website
Students can make online payments, view account balances, view payment history, change billing options and other features
All student loan information including Parent Plus Loan is submitted to the National Student Loan Data System (NSLDS). The information is accessible by guaranty agencies, lenders, and institutions determined to be authorized users of the data system.