Loans

William D. Ford Federal Direct Loans

Tougaloo College has changed to 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. Due to this change, 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.

Students who are registered for at least six credit hours and who are in good academic standing may be eligible for a Federal Direct Student Loan. A dependent student can borrow the following loan amounts:

 
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

An independent student or dependent student whose parents are unable to get a PLUS loan can borrow up to:

 
$9,500 as a first year student (only $3,500 can be subsidized)
 
 
$10,500 as a second year student (only $4,500 can be subsidized)
 
 
$12,500 as a third year student (only $5,500 can be subsidized)
 

Student must file a FAFSA form to determine family contribution. Amount of family contribution figure determines eligibility for either a subsidized or unsubsidized Direct Loan. Interest on subsidized loan is paid by federal government while student is enrolled at least half-time and for six months after student leaves school; interest on unsubsidized loan is by student. Repayment of principal begins six months after the borrower is no longer at least half-time student.

Delayed disbursement of funds (30 days after the first day of instruction) is required for all first-time borrowers for Direct Loan program.

Direct Loans Application Procedures

Note to All Applicants:

  • A student must be enrolled for at least six (6) credit hours and in good academic standing to be eligible for a student loan.
  • The results of the Free Application for Federal Student Aid (FAFSA) must be on file at the college before a loan can be processed.
  • All Direct Loan borrowers must complete a Loan Entrance Interview online.
  • All borrowers must complete a new Master Promissory Note (MPN) online.

For STUDENTS to Apply for Direct Loan:

  1. Complete Entrance Counseling
  2. MUST RETRIEVE student PIN from www.pin.ed.gov to complete the next step
  3. Log on to http://dlenote.ed.gov and click on "Complete New MPN for Student Loans"
  4. Complete Master Promissory Note

For PARENTS to Apply for Direct Loan:

Complete paper Federal Direct PLUS Loan Credit Application (2013-2014) and mail or fax (return information enclosed).

Or complete the following steps electronically:

  1. Retrieve Parent PIN from www.pin.ed.gov to complete Direct Parent PLUS
  2. Log on to www.studentloans.gov and complete request for a PLUS Loan application
  3. Complete Master Promissory Note for Plus Loan

Additional Info

Direct Loans disburses loans (less the 1.5% origination fee) in two installments (disbursements) directly to the college. Funds are credited to students accounts through an electronic funds transfer (EFT) process. If you are a first-time borrower, your loan cannot be disbursed until at least 30 days after the day of school.

  1. If loan funds for a student who is not enrolled for at least six (6) credit hours are disbursed, funds must be returned to Direct Loans.
  2. Withdrawing from the college: If the student totally withdraws from college prior to completing 60% of the semester, the loan must be prorated based on the number of days in attendance. Loan funds unearned must be returned to the lender. If the loan was used to pay tuition bill, the student may now have an outstanding bill with the college.
  3. Loan Exit Interview is required upon graduation or when the student ceases to be enrolled for at least six (6) credit hours.

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 when leaving Tougaloo College. Students who borrowed Stafford and/or Unsubsidized Stafford Loans can meet this requirement on-line, please click here. This is an opportunity for your lender to remind you of your rights and responsibilities as a student loan borrower.

Please note that 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, city, state, zip codes, and complete phone numbers.

For a complete listing of your financial aid history, you can access the National Student Loan Data System at www.nslds.ed.gov. 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.