Financial Aid
 
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TC >Types of Financial Aid > Federal Student Loans

Federal Student Loans

Federal Student Loan Eligibility Requirements

  1. Student must complete the FAFSA.
  2. Student must maintain Satisfactory Academic Progress requirements at all times.
  3. Student must be enrolled at least half-time (6 hours) each semester.
  4. Student must be a citizen or eligible non-citizen.
  5. Student must not be in default on any federal loan or owe a refund back to any federal program.
  6. Student must not have excessive student loans or have met aggregate loan limits.

How do I apply for a Federal Student Loan?

Students must complete the Free Application for Federal Student Aid, or FAFSA (www.fafsa.ed.gov). Once the Financial Aid process is complete, the student may review the Financial Aid Award letter on TConnect. Once the Financial Aid Award is available, the student may accept or decline the loan(s) on the TConnect account.The student loan can be used only for educational costs such as tuition and fees, room and board, books and supplies. It's important to borrow only what you need.

Loan Process

If you are a first-time borrower, you must complete the following instructions to receive loan funds:
 

  1. Complete the Master Promissory Note (MPN) at www.studentloans.gov
  2. Complete online Entrance Counseling specifically for Temple College at www.studentloans.gov
  3. Attend a mandatory in-person loan counseling class. Loan Counseling Class dates can be found listed under the tab "Loan Counseling Classes"

      

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.

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

CLASSIFICATIONS DEPENDENT STUDENTS: Additional unsubsidized loan amounts
FRESHMAN: 29 or less semester hours completed $3,500 $2,000
SOPHOMORE: 30 or more semester hours completed, excluding developmental hours $4,500 $2,000
 
CLASSIFICATIONS INDEPENDENT STUDENTS: Additional unsubsidized loan amounts
FRESHMAN: 29 or less semester hours completed $3,500 $6,000
SOPHOMORE: 30 or more semester hours completed, excluding developmental hours $4,500 $6,000
* The actual loan amount you are awarded will depend on other financial aid you receive and the amount of your budget (cost of attendance) as set by TC Financial Aid Office.

Maximum Eligibility Period - New!
 

Beginning July 1, 2013, there will be a limit on the maximum period of time that a student can receive Direct Subsidized Loans. Essentially, the student will not be eligible to receive the Direct Subsidized Loan for more than 150% of the published length of program the student is enrolled in. Please review the example below for details: If a student is enrolled in a 2-year associate degree program, the maximum period for which the student is eilgible to receive Direct Subsidized Loans is 3 years (150% of 2 years = 3 years).

If the student stays enrolled in the current program after the maximum eligibility period, the student will only be eligible to receive Direct Unsubsidized Loans. The student will also become responsible for paying the interest that accrues on his or her Direct Subsidized Loans.

If the student changes programs to a different 2-year associate degree program, the maximum eligibility rule still applies. Additionally, the Direct Subsidized Loans that were borrowed in the previous program will still generally count against the new maximum eligibility period.

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 30 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 30 days after classes start and $875 at the midpoint of the term (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. You must sign the Master Promissory Note (MPN) to be eligible for federal student loans. You may sign this at www.studentloans.gov.
Subsidized Stafford Loan
The Subsidized Stafford Loan is awarded to undergraduate students on the basis of financial need as determined by the Free Application for Federal Financial Aid (FAFSA). The U.S. Department of Education will pay the interest on this loan until the student enters the "Grace Period." The "Grace Period" is a six month time frame 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 U.S. Department of Education to ensure that all students, regardless of their income, would be able to obtain a student loan. The U.S. Department of Education does not pay the interest while you are in school. The student is responsible to pay the interest while attending college or may wait until the student graduates, ceases enrollment or drops below half-time enrollment. Interest will be charged from the time the loan is disbursed until it is repaid in full. If you decide not to pay the interest while enrolled in college, the interest will be capitalized, and it will be added to the principle amount of your loan. This means it 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. Entrance counseling can be completed at www.studentloans.gov.
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) who will always be in contact with you. Include their name, address and phone number. Complete Exit Loan Counseling at www.studentloans.gov.
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  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, the TC Financial Aid Office will certify an 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 2013-2014, 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.

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 maintains 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.