Federal Stafford Loans

Federal Family Education Loan Program (FFEL) consists of Federal Stafford Loans that are made through commercial lenders and guaranteed by the federal government. Federal Stafford loans are either subsidized or unsubsidized.

General Stafford Loan Information

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. Loan amounts are awarded based on grade level and cannot exceed the established cost of attendance for the school, including other aid received. Your awards may include both subsidized and unsubsidized loans.

Stafford Subsidized Loan

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 periods of deferment.

Stafford Unsubsidized Loan

The Stafford Unsubsidized loan is not always based on financial need. For unsubsidized loans, 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 (capitalize). 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.

Stafford Loan Limits

Undergraduate Student Total School Year Loan Limits:

* Independent and/or dependent students with a Federal Parent Plus loan denial.

Graduate Student Loan Limits

• Subsidized Stafford loan limit of $8,500 for the school year.

• Unsubsidized Stafford loan limit of up to $12,000 for the school year.

• Lifetime Stafford loan limit of $138,500, which includes all subsidized and unsubsidized graduate and undergraduate loans.

• Generally out-of-state students are eligible to receive the maximum annual loan limit.

Please note: All loans are based on cost of attendance, EFC, other aid received and the above loan limits. STUDENTS MAY NOT QUALIFY FOR THE FULL AMOUNTS LISTED ABOVE.

Stafford Loan Disbursements

If you apply for a loan that covers two semesters, loan funds will be disbursed by the lender in equal amounts at the first of each semester.

To be eligible to receive a loan disbursement, all students must be officially enrolled in a degree-seeking program and be attending at least half time (6 hours for undergraduate and 5 hours for graduate).

Lenders will deduct a loan origination fee of approximately 0 - 3% before the money is disbursed to MTSU. All lenders are bound by the same basic regulations; however, some have special programs or customer service features that you will appreciate as a borrower. Please call the lenders or access their web sites to ask specific questions.

Stafford Loan Entrance Interview

All first-time borrowers at MTSU must complete an Entrance Interview before receiving any loan funds. Log onto Pipeline MT to complete the Entrance Interview. Once logged in, click on the RaiderNet tab and accept the awarded loan, indicate the type of loan (subsidized and/or unsubsidized), the loan amount requested, the loan period, and the lender. When you select the lender, you will be directed to the lender website to sign a master promissory note, if you have not signed one previously with that same lender. The loan process will not continue until the master promissory note is completed.

Stafford Loan Application Procedure Beginning Fall 2007

1. Complete the FAFSA.
2. Loan eligibility for the Fall/Spring academic year will be listed on the student RaiderNet account.
3. Before accepting or refusing a loan, determine what your expenses and your resources will be for the upcoming academic year. DO NOT BORROW MORE THAN YOU NEED! If you do not need a loan, click "Decline" and then click "accept awards." Do not click "Accept All". If you do need a loan, you must accept the loan on your RaiderNet account, indicating the type of loan you want (subsidized and/or unsubsidized), the loan amount requested, the loan period and the lender. When you select the lender, you will be directed to the lender website to sign a master promissory note, if you have not signed one previously with that same lender. The loan process will not continue until the master promissory note is completed.
4. Once you have accepted the loan, signed the master promissory note, and MTSU certifies your loan request, the loan application will be electronically submitted to a guarantee agency for approval.    
5. The lender will generally disburse funds on the published disbursement dates or within 4 days after receiving the complete promissory note if the semester has already started. The loan funds will be applied to the student's account and any charges will be paid with the proceeds. Check the current schedule book for the actual dates the money will be released to students. Students with direct deposits generally receive their funds early.

The following information applies to Stafford loan recipients who participate in the joint Master of Criminal Justice degree between Middle Tennessee State University (MTSU) and Tennessee State University (TSU).  Loans for other graduate students will be processed according to the procedures listed above.

Stafford Loans and MTSU/TSU Joint Master of Criminal Justice Degree

 Because students are required to complete 18 credit hours at MTSU and 18 credit hours at TSU, Stafford loans are awarded from the University where students will graduate (school where students enroll in research/thesis classes).  For financial aid purposes, this will be considered the “Home School”.  Often students are enrolled simultaneously at both MTSU and TSU; however, they should receive financial aid from only the “Home School”.  For example, if students declare MTSU as their “Home School”, MTSU should award the Stafford loans for the required courses taken at both MTSU and TSU. 

 To receive loans, a consortium agreement must be processed between MTSU and TSU. A consortium agreement is a written agreement between MTSU and TSU for the purpose of administering financial aid. The “Home School” is the school that grants the student’s degree and pays his/her financial aid. The “Host School”, where the student is enrolled, agrees not to pay financial aid to the student.  A consortium agreement is required for each semester a student is not enrolled in at least 5 applicable graduate credit hours at their “Home School”.

 MTSU “Home School” students may request a MTSU Consortium Agreement by contacting Judith Fogus at (615) 898-2247 or by email at jfogus@mtsu.edu.

Example 1:  Mary has designated MTSU as “Home School”. She is enrolled in 3 CJA graduate credit hours at MTSU and 3 CJA graduate credit hours at TSU. To receive Stafford loan funds from MTSU, Mary must complete a MTSU Consortium Agreement because she is enrolled in less than 5 graduate hours at her “Home School”.

 TSU “Home School” students may obtain a TSU Consortium Agreement by contacting the TSU Financial Aid Office. 

Example 2:  Joe has designated TSU as “Home School”. He is not enrolled in any hours at TSU and is enrolled for 6 hours at MTSU. To receive Stafford loan funds from TSU, Joe must complete a TSU Consortium Agreement because he is enrolled in less than 5 graduate hours at his “Home School”.

 MTSU Stafford loan funds will not be sent to TSU.  Refunds will be directly deposited to students’ bank accounts, provided students have set up direct deposit authorization. For refund dates, refer to www.mtsu.edu/~bursarmt.

It is the students’ responsibility to pay the balance owed to TSU.

 The MTSU Business Office may offer a TEMPORARY deferment to students who have designated TSU as their “Home School”, but are enrolled at MTSU. These students must have a current completed Consortium Agreement on file in the MTSU Financial Aid Office. After TSU disburses aid, students are responsible for paying MTSU the balance owed. The MTSU Business Office reserves the right to approve or deny requests for temporary deferments.

Stafford Loan Exit Interviews

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 MTSU.

Loan Servicer Information

To find out who services your student loan and how to contact them, you can access the Loan Locator.

Loan Ombudsman

After many unsuccessful attempts to resolve loan problems, students may contact the Federal Student Loan Ombudsman office for help in resolving their issues.