Financial Aid, Scholarships and Student Employment Office

Types of Financial Aid – Loans

See also:
Group Loan Workshop Dates
Loan Workshop Follow-up
Online Exit Counseling

Federal Stafford Loans(Subsidized and Unsubsidized)
These are low interest, need-based and non-need based loans, respectively, made by banks and other commercial lending institutions to students. Repayment begins 6 months after the student graduates, leaves school or drops below half-time (6 credits).

Federal PLUS Loan
The PLUS loan is for the parents of dependent students. The interest rates are fixed at 8.5%. Repayment on PLUS loans begins 3 months after the second disbursement of the loan. Applications are available in the loan area of the financial aid office or apply online with your bank.

Federal Perkins Loan
This is a long-term, low-interest loan. TMCC determines who is eligible and the amount of the loan. Students having exceptional need and the least ability to contribute to their own educational costs are given priority. Repayment begins 9 months after the student graduates, leaves school or drops below 6 credits.

Emergency Loan
Any TMCC student who is enrolled at least half-time (6 credits) whose fees have been paid or deferred, and has a bona fide emergency during the school term related to educational expenses, may apply for a loan of a maximum of $200. This loan must be repaid within 30 days and requires a $1.00 processing fee. Students may receive one loan per semester.

Top 10 TMCC Student Loan Questions

  1. How do I apply for a Stafford loan at TMCC?
    1. Complete and submit the Free Application for Federal Student Aid (FAFSA) to the federal processor.
    2. Complete your TMCC financial aid file.
    3. If you have borrowed here previously, loan materials will be mailed to you when your file is complete.
    4. If you are a first time borrower at TMCC, sign up for a group loan workshop when your file is complete. You will be given instructions in the workshop.
    5. Complete online exit counseling before the second disbursement of your first loan at TMCC.
    6. Check MyTMCC for any updates to your file
  2. How long will it take to process a loan application?
    After your financial aid file is complete, loan processing will take two to four weeks before you can expect to receive a loan check. Be sure to update your address with TMCC's admissions and records office, as all financial aid checks are mailed.
  3. How much can I borrow for attendance at TMCC?
    The financial aid office determines eligibility, based on annual loan limits established by the Dept. of Education and the student's grade and enrollment level. Each student will be given an individual loan worksheet during the group loan workshop.
  4. What happens if I transfer to another college during the same academic year?
    You must cancel any pending loans at TMCC and contact the new college to find out how to be awarded financial aid there, including loans.
  5. What is the difference between subsidized and unsubsidized Stafford Loans?
    For subsidized Stafford Loans, the Federal Government pays the interest while the borrower is in school, during the six months grace period and deferment periods.
    For unsubsidized Stafford Loans, the borrower must pay interest. There are two options for paying the interest. 1) the borrower can pay while in school, during the six months grace and deferment periods, or 2) the borrower can allow the interest to accrue and it will capitalize at repayment.
  6. What is the interest rate on Stafford Loans?
    The interest rates are fixed as follows:
Loan first disbursed:SubsidizedUnsubsidized
7/1/2008 — 6/30/20096.0%6.8%
7/1/2009 — 6/30/20105.6%6.8%
7/1/2010 — 6/30/20114.5%6.8%
7/1/2011 — 6/30/20123.4%6.8%
  1. When do I have to begin repaying a Stafford Loan?
    Repayment begins six months after graduating, withdrawing or dropping to less than half-time enrollment status.
  2. Can I get a better loan by using another lender?
    The loan terms are the same for all lenders, however each lender may offer different customer service benefits.
  3. What are the consequences of not repaying a student loan?
    • You will be reported to a credit bureau having a negative effect on your credit rating.
    • You can be referred to a collection agency and have to pay collection costs.
    • Your employer may garnish your wages.
    • The Internal Revenue Service may withhold your state and federal income tax returns.
    • The entire unpaid amount of your loan, including interest may, become due and payable immediately.
    • You will lose your rights to deferments.
    • You will be ineligible to receive any additional federal or state financial aid.
  4. Who shall I contact when I am having trouble resolving an issue with my loan?
    1. Contact your school's financial aid office
    2. Contact your lender
    3. Contact the Department of Education's Office of the Ombudsman. (This office was established to deal specifically with student loan issues.)

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