William D. Ford Federal Direct Loans
Tougaloo College participates in the William D. Ford Federal Direct Loan Program (Direct Loans). Under the Direct Lending program, the funds for your loan come directly from the federal government and NOT from a bank, credit union, or other lending institution.
Important Changes
Due to our participation in the Direct Lending program, ALL students who are requesting a student loan will be required to complete a Master Promissory Note and Loan Entrance Counseling, even if you have already completed this in the past.
Eligibility Requirements
- Must be enrolled for at least 6 credit hours
- Must be in good academic standing
- Must complete the FAFSA to determine family contribution
- Must complete Entrance Counseling and Master Promissory Note
First-Time Borrowers
Delayed disbursement of funds (30 days after the first day of instruction) is required for all first-time borrowers in the Direct Loan program.
Federal Direct Loan Amounts
Loan amounts vary based on your dependency status, academic year, and family financial circumstances.
Dependent Students
A dependent student can borrow the following loan amounts:
| Academic Year | Credit Hours Earned | Maximum Loan Amount |
|---|---|---|
| First-year student (Freshman) | 0-29 hours earned | $3,500 |
| Second year student (Sophomore) | 30-59 hours earned | $4,500 |
| Third and Fourth year student (Junior and Senior) | 60-186 hours earned | $5,500 |
Independent Students or Dependent Students Whose Parents Cannot Get PLUS Loan
These students can borrow additional unsubsidized loan amounts:
| Academic Year | Total Maximum Amount | Subsidized Limit |
|---|---|---|
| First year student | $9,500 | Only $3,500 can be subsidized |
| Second year student | $10,500 | Only $4,500 can be subsidized |
| Third year student and beyond | $12,500 | Only $5,500 can be subsidized |
Subsidized vs. Unsubsidized Loans
- Subsidized Loans: Interest is paid by the federal government while you're enrolled at least half-time and for six months after you leave school
- Unsubsidized Loans: Interest is your responsibility from the time the loan is disbursed
- Repayment: Principal repayment begins six months after you're no longer enrolled at least half-time
Direct Loans Application Process
Note to All Applicants
- Must be enrolled for at least 6 credit hours and in good academic standing
- FAFSA results must be on file at the college before loan processing
- All Direct Loan borrowers must complete Loan Entrance Counseling online
- All borrowers must complete a new Master Promissory Note (MPN) online
For STUDENTS to Apply for Direct Loan
1Complete Entrance Counseling
Log on to the entrance counseling website and complete the required counseling session.
Start Entrance Counseling2Complete Master Promissory Note
Log on to the student loans website and choose the Direct Loan MPN you want to preview or complete.
Complete MPNFor PARENTS to Apply for Direct PLUS Loan
1Paper Application Option
Complete the Federal Direct PLUS Loan Credit Application and mail or fax (return information included).
2019-2020 Application2Electronic Application Option
Complete the application process online through the federal student aid website.
Steps:
- Log on to www.studentaid.gov
- Complete PLUS Loan application
- Complete Master Promissory Note for PLUS Loan
Essential Loan Resources
Access the tools and resources you need to manage your student loans.
Entrance Counseling
Required for all first-time borrowers. Complete online counseling to understand your loan responsibilities.
Complete CounselingMaster Promissory Note
Complete your MPN online to finalize your loan application and terms.
Complete MPNImportant Loan Information
Loan Disbursement Process
Direct Loans disburses loans (less the 1.5% origination fee) in two installments directly to the college. Funds are credited to student accounts through an electronic funds transfer (EFT) process.
First-time borrowers: Your loan cannot be disbursed until at least 30 days after the first day of school.
Important Requirements and Consequences
- Enrollment Requirement: If loan funds are disbursed for a student who is not enrolled for at least 6 credit hours, funds must be returned to Direct Loans.
- Withdrawal Policy: If you totally withdraw from college prior to completing 60% of the semester, the loan must be prorated based on the number of days in attendance. Unearned loan funds must be returned to the lender. If the loan was used to pay tuition, you may have an outstanding bill with the college.
- Exit Interview: A Loan Exit Interview is required upon graduation or when you cease to be enrolled for at least 6 credit hours.
Interest and Repayment
- Subsidized Loans: Government pays interest while you're in school at least half-time and during grace period
- Unsubsidized Loans: You're responsible for all interest from disbursement
- Grace Period: 6 months after graduation or dropping below half-time enrollment
- Origination Fee: 1.5% of loan amount is deducted before disbursement
Senior Exit Interview (Graduates)
U.S. Department of Education regulations require Federal Stafford and Federal Unsubsidized Stafford Loan recipients to complete Exit Loan Counseling when graduating from or leaving Tougaloo College.
Exit Counseling Requirements
Students who borrowed Stafford and/or Unsubsidized Stafford Loans can meet this requirement online. This is an opportunity for your lender to remind you of your rights and responsibilities as a student loan borrower.
Complete Exit CounselingRequired Information for Exit Counseling
You will be required to provide three personal references for Exit Loan Counseling. One of these references must be the address of your immediate next of kin.
- All references should be adults who live at separate addresses
- Addresses must include street and/or P.O. Box numbers
- Include city, state, and zip codes
- Provide complete phone numbers
Access Your Loan History
For a complete listing of your financial aid history, you can access the National Student Loan Data System. You will be required to set up an identification profile for security purposes. The National Student Loan Data System is maintained by the U.S. Department of Education.
View Loan HistoryNeed Help with Student Loans?
Tougaloo College Financial Aid Office
financialaid@tougaloo.edu | (601) 977-7769
Office Hours:
Monday - Friday: 8:00 AM - 5:00 PM
Location: Administrative Building, 2nd Floor
Our financial aid counselors are available to help you understand the loan process, complete required forms, and answer questions about your student loans. Don't hesitate to contact us for assistance.