Federal Student Loans

Federal Student Loan Eligibility Requirements

1. Student must complete the FAFSA.
2. Student must meet academic progress as determined by the Financial Aid Office.
3. Student must be enrolled at least half-time (6 hours) each semester.
4. Be a citizen or eligible non-citizen.
5. The student must not be in default on any federal loan or owe a refund back to any federal program.
6. Not already exceed aggregate loan limits.

How do I apply for a Federal Student Loan?

Temple College "packages" Federal Loans for all of our students who are interested in being considered for student loans on the FAFSA. Once you are awarded a loan, you still must accept the loan on-line. You will find step-by-step instructions included with your award letter as well as on this website. Please contact our office if you have any questions.

Your student loan can be used only for educational costs such as tuition and fees, room and board, books and supplies. You want to borrow only what you need.

Loan Process

Temple College will inform you that you have been awarded a loan by means of a Financial Aid Award Letter. If you wish to accept the loan, you must complete your loan application online E-sign your Master Promissory Note using your PIN from the FAFSA. DO NOT SEND YOUR MASTER PROMISSORY NOTE TO THE FINANCIAL AID OFFICE! Once a Master Promissory Note is in place you will not have to fill out another promissory note for the next ten years unless you are a transfer student, or did not have a loan funded within the last 12 months of the original promissory note. Please contact our office if you have any questions.

Follow the two steps at the Direct Loan link: Direct Loans or go directly to www.StudentLoans.gov

How Will I Know If My Loan Has Been Approved?

You will know immediately if your loan has been guaranteed. You will receive a message after completing your online loan application that says “Congratulations, your loan has been guaranteed!” If you don’t receive this message, then you haven’t completed all of the steps to complete your loan application, and the funds will not be sent to Temple College.

After your loan has been guaranteed you must e-sign your Master Promissory Note (MPN) with your FAFSA pin.

You will receive a letter (disclosure statement) stating whether you have been approved or not and if you have, when to expect the funds to be disbursed.

Don't make plans for the money until you have received final approval and you receive the loan funds.

Discharge of a Prior Loan Due to Total and Permanent Disability

A borrower who has received a discharge of a prior loan due to conditional or final determination that the borrower is totally and permanently disabled must do all of the following to be eligible to receive a new Direct Loan or PLUS loan at Temple College:

• Obtain a physician’s statement certifying that the borrower may now engage in “substantial gainful activity.” For these purposes, “substantial gainful activity” is defined as the ability to work and earn money.
• Sign a statement acknowledging that any new loan the borrower receives may not be discharged due to the same or any disability existing at the time the new loan is made, unless the disabling condition substantially deteriorates to the extent that the definition of total and permanent disability is met.
• Sign a statement acknowledging that collection activity will resume on any loans in a conditional discharge period.

Loan Limits for Federal Student Loans

Disbursement Rules

Loan proceeds are released in two disbursements. The Financial Aid Office will notify you for specific release dates by means of your award letter. For Fall/Spring loans, you will receive half of the loan amount requested in the Fall and the other half in the Spring semester provided you are enrolled in at least 6 semester hours and meet Temple College's satisfactory academic progress as determined by the Financial Aid Office. Example: You were awarded $3,500 for the Fall/Spring term. You will receive $1,750 for the Fall semester and $1,750 for the Spring Semester (excluding first-time borrowers, 30 day hold rule and excluding late applicants). For Single Term only loans, you will receive half of the loan amount requested approximately 14 days after classes start and the other half at the midpoint of the semester. Example: You were awarded $1,750 for the Fall term. You will receive $875 approximately 14 days after classes start and $875 at the midpoint of the term (excluding first-time borrowers, 30 day hold rule and excluding late applicants).

Origination fees are charged by the federal government for processing the loan. The fee is deducted from the proceeds of your loan. Please make note: According to Federal Regulations, the first disbursement for first-time borrowers must be held 30 days from the 1st class day.

PLEASE NOTE:
Your loan funds will be sent to Temple College by means of Automatic Clearinghouse (ACH). ACH is the electronic transfer of loan proceeds to an account at the school. You could receive credit for your tuition, fees, and possible books up to your first loan check amount. If you owe any difference, you will be responsible to pay that difference.

IMPORTANT!!! Balances are made available by the Business Office to students via the TC OneCard. Please assure your TC OneCard has been activated. BE SURE ADMISSIONS AND RECORDS HAS YOUR CURRENT MAILING ADDRESS AT ALL TIMES. You can update your mailing address on-line by clicking the “Change of Student Information” link in TConnect on the Temple College homepage. If you have received/activated your card, please update your address with Higher One by logging into www.tconecard.com. Under the “Profile” tab, select “Address and Phone” and follow the instructions.

Master Promissory Note

The Master Promissory Note (MPN) is a binding contract. You are promising to pay back the funds loaned to you.

Subsidized Stafford Loan

The Subsidized Stafford Loan is awarded to undergraduate and graduate students on the basis of financial need determined by the Free Application for Federal Financial Aid (FAFSA). The federal government pays the interest on this loan until you begin repayment. Repayment of this loan will begin six months after you graduate, leave school, or drop below half-time enrollment (6 hours). To qualify for this loan please see the Federal Loan Eligibility Requirements.

Unsubsidized Stafford Loan

The Unsubsidized Stafford Loan Program was created by the government to assure that all students, regardless of their income, would be able to obtain a student loan. The federal government does not pay the interest while you are in school. Interest will be charged from the time the loan is disbursed until it is repaid in full. If you decide to capitalize or defer the interest, it will be added to the principle amount of your loan and this will increase the amount you have to repay. If you choose the option of paying the interest as it accumulates, then you will pay less in the long run. Repayment of the interest and principle will begin six months after you graduate, leave school, or drop below half-time enrollment (6 hours). To qualify for this loan please see the Federal Loan Eligibility Requirements.

Entrance Loan Counseling

All first-time borrowers must attend entrance counseling before your loan will be processed.

Exit Loan Counseling

Federal Regulations require that all students who receive a Federal Student Loan must complete exit counseling prior to graduation or dropping below half-time attendance. You will need a list of three different references (relatives or friends) that will always be in contact with you. Include their name, address and phone number.

Parent Loans For Undergraduate Students (PLUS)

The purpose of the Parent Loan (PLUS) is to assist parents by providing a source of loan funds to help pay the cost of education for dependent undergraduate students. Parents may borrow up to the full cost of attendance less any other financial assistance the student receives, which is visible on the student’s award letter. Parents must be able to pass a credit check or obtain a 'co-signer' who is able to pass the credit check. Both the parent and student must meet general eligibility requirements for federal financial assistance. Students must be enrolled in at least 6 hours each semester to be eligible.

How Do I Apply For A Federal Parent Loan?

PLUS loans are available through the William D. Ford Federal Direct Loan Program. To apply for a PLUS loan, the parent of the student must complete a PLUS loan application and promissory note, which is available at: https://studentloans.gov. For any assistance, please call 1-800-557-7394.

PLUS Loan Process

Temple College will require a pre-approval prior to certifying a PLUS loan. Parents will be required to get approved or denied every academic school year.

If the Parent is APPROVED, TC Financial Aid Office will certify the loan for the maximum for which the parent is eligible up to the student’s cost of attendance minus other aid. The student will be notified through a revised award letter. The parent may reduce the loan amount by contacting the Financial Aid Office. The loan funds will be applied to the student’s account. Any charges owed to Temple College will be deducted and a refund check will be mailed to the parent. Any remaining loan funds must be used for educational expenses.

If the Parent is DENIED, TC Financial Aid Office will certify the Unsubsidized Stafford loan for the student and a revised award letter will be sent.

The interest rates for Direct PLUS loans are determined on July 1 of each year. For 2010-2011, the rate for these PLUS loans is a fixed rate of 7.9%. Interest is charged on a PLUS loan from the date of the first disbursement until the loan is paid in full. In addition to interest, the Parent will pay a loan origination fee that will be a percentage of the principal amount of each Direct PLUS that you receive. The fee is deducted before you receive any loan money, so the loan amount you actually receive will be less than the amount you have to repay. This fee goes to the government to help reduce the cost of the loans.

PLUS Disbursement Rules

The U.S. Department of Education will send the funds to the school. Normally, the loan covers a full academic year so there will be at least one disbursement per semester. On the other hand, there may be a rare occasion when the loan is for one semester only. If that is the case, then it still will come in two disbursements, one at the beginning of the semester and the other at the mid-point of that semester. All disbursements are contingent that the student remains at least half-time status (6-8 semester hours) and meets Satisfactory Academic Progress.

The funds will first be applied to the student’s tuition, fees, and other school charges. If any loan funds remain, the student’s parent will receive the amount as a check. Any remaining loan funds must be used for educational expenses.

Repayment

Parents have the option of repaying on the PLUS loan 60 days after the loan is fully disbursed.

For Direct PLUS loans first disbursed on or after July 1, 2008, the parent has the option of deferring repayment while the dependent student for whom you have borrowed the loan is enrolled at least half-time or wait until 6 months after the dependent student ceases at least half-time basis. Also, if you’re a parent PLUS borrower who is also a student, you can defer repayment while you are enrolled in school at least half-time and for an additional 6 months after you graduate or drop below half-time enrollment.

More Information

For further information on Direct PLUS loan, please visit the U.S. Department of Education’s Direct Loan Servicing Center website: http://www2.ed.gov/offices/OSFAP/DirectLoan/parent.html

IMPORTANT!	IMPORTANT!	IMPORTANT!
Students receiving federal student aid who completely withdraw from school prior to completing 60% of the semester or students who have been administratively dropped due to non-attendance will be subject to a federal requirement that any unearned aid will be returned. This may cause the student to owe a refund to the government. If Temple College returns funds beyond the normal refund policy, the student will be responsible for this amount. This debt owed to Temple College will cause a hold to be placed on all academic records. If funds are not paid back the student will not be eligible for ANY Title IV funds at any college. Additional information on this may be found in a handout available in the Financial Aid Office, Student Handbook, and the College Catalog.

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