Federal direct loans are available and amounts are based on the student's grade level. Federal Direct PLUS Loans are also available to parents. The U.S. Department of Education, not TLU, is the lender for federal direct loans.
Federal Loan Programs
Effective January 1, 2010 - All new loans processed after or with a first disbursement date after January 1, 2010 will be processed through the Federal Direct Loan program. This will not affect current TLU students who graduated in May or August 2010.
Students currently enrolled at TLU will need to complete a Federal Direct Loan Master Promissory Note (MPN) before loan funds will be disbursed. Complete Federal Direct Loan entrance counseling and electronically sign your Loan Master Promissory Note (MPN) at studentaid.gov. Students and parents who have already completed a federal Direct Loan MPN do not need to complete a new MPN for TLU.
Federal loan programs are loans offered at low interest rates that allow students to borrow funds to pay their educational expenses. Repayment of these loans begins six to nine months after the student graduates or drops below half-time (6 credit hours) enrollment. For additional information on loan types, interest rates and repayment options visit studentaid.gov.
Federal Direct Loans
Federal Direct Loans are available to students who filed a FAFSA and are enrolled at least half-time. Borrowing amounts are as follows:
Freshman $3,500 $2,000 $4,000 Sophomore $4,500 $2,000 $4,000 Juniors and Seniors $5,500 $2,000 $5,000
Direct Subsidized Federal Loans are based on financial need. The federal government pays the interest on subsidized loans for students that are enrolled at least half-time.
Direct Unsubsidized Federal Loans are not based on financial need. Interest on unsubsidized loans will accrue while you are in school. Students may pay the interest on these loans quarterly while in school or choose to defer interest payments as long as they are enrolled at least half-time.
Complete Federal Direct Loan entrance counseling and electronically sign your Loan Master Promissory Note (MPN) at www.studentloans.gov.
Direct Loan Interest Rates
Federal Direct loans disbursed on or after July 1, 2020 and before July 1, 2021*:
- Direct Subsidized Loans – 2.75%
Direct Unsubsidized Loans: Undergraduate - 2.75% Graduate – 4.30%
- Direct Parent/Graduate PLUS Loans – 5.30%
*Subject to change every July 1.
Direct Loan Origination Fees*
*Subject to change every Oct. 1
Federal Direct Subsidized and Unsubsidized loans disbursed on or after:
- On or after October 1, 2019 and before October 1, 2020: 1.059%
- On or after October 1, 2020 and before October 1, 2021: 1.057%
Federal Direct Parent/Graduate PLUS loans disbursed:
- On or after October 1, 2019 and before October 1, 2020: 4.236%
- On or after October 1, 2020 and before October 1, 2021: 4.228%
To view the most current information visit studentaid.gov.
Federal Direct Loan Borrower Rights & Responsibilities
Below is a summary of your rights and responsibilities as a borrower of a Direct Loan. More specific rights and responsibilities for your loan was provided to you with a copy of your promissory note and can be requested by sending us an email or calling us.
I understand that I have a right to the following:
- written information on my loan obligations and information on my rights and responsibilities as a borrower
- a grace period and an explanation of what this means
- a disclosure statement, received before I begin to repay my loan, that includes information about interest rates, fees, the balance I owe, and the number of payments
- deferment of repayment for certain defined periods, if I qualify and if I request it
- forbearance, if I qualify and if I request it
- prepayment of my loan in whole or in part any time without an early-repayment penalty
- a copy of my promissory note either before or at the time my loan is disbursed
- documentation that my loan(s) are paid in full
I understand I am responsible for:
- attending Exit Counseling before I leave school or drop below half-time enrollment
- repaying my loan even if I do not complete my academic program (under certain circumstances), I am dissatisfied with the education I received, or I am unable to find employment after I graduate
- notifying my school and the Direct Loan Servicing Center if I:
- move/change my address
- change my name
- withdraw from school or drop below half-time enrollment
- transfer to another school
- fail to enroll or re-enroll in school for the period for which the loan was intended
- change my expected date of graduation
- making monthly payments on my loan(s) after I leave school, unless I have a deferment or a forbearance
- notifying the U.S. Department of Education's Direct Loan Servicing Center of anything that might alter my eligibility for an existing deferment
- attending classes and making satisfactory academic progress as defined by my school.
I understand that I am receiving a loan from the federal government that must be repaid.
- Direct Subsidized Loans – 2.75%
Parents may begin applying for the Parent PLUS loan for the 2021-2022 academic year on May 15, 2021 when the next academic year becomes available on studentaid.gov. Note: Credit checks are only valid for 180 days.
Federal Direct PLUS Loans are available to parents who have a dependent child in college. Individual eligibility is determined by subtracting all financial aid awards for the academic year from the cost of attendance. Financial need is not a requirement, but parents must complete the FAFSA before applying for this loan. Parents must apply and be credit approved for this loan each year. Credit approvals are valid for 90 days. For additional information on interest rates, origination fees and repayment options for the PLUS loan visit studentaid.gov.
Parents may apply for the Federal Direct Parent PLUS Loan at studentaid.gov. Sign in using your FSA ID. Once you are approved, you will be able to electronically sign your Master Promissory Note (MPN).
Non-federal loans are available for students. These loans generally require the borrower to be credit worthy or have a credit worthy co-borrower and usually do not have as favorable interest rates as the federal programs. Students are encouraged to file the FAFSA and apply for federal loans before applying for private loans. For more information, visit the Office of Student Financial Services.
Loan Counseling & Repayment
Federal Direct Loans will go into repayment six months after graduation or if the student falls below half-time enrollment status.
These loans are repaid to the loan servicer designated by the Department of Education. Borrowers are required to complete Entrance Counseling prior to borrowing loans and Exit Counseling upon graduation or enrollment below half-time.
- Entrance Counseling Guide
- Annual Student Loan Acknowledgement
- Exit Counseling Guide
- Direct Loan Repayment Options
Federal Perkins Loans will go into repayment nine months after graduation or if the student falls below half-time enrollment status. These loans are repaid to TLU through our Perkins Loan servicer, Heartland ECSI.
You may access entrance and exit counseling links for Direct and Perkins loans at the links below or via MyTLU.