Federal Direct (Stafford) Loans
This is a federal long-term loan designed to help students who have difficulty meeting college expenses. These loans are administered by the William D. Ford Direct Loan program. Federal regulations and institutional cost of attendance budgets limit the amount that a student may borrow.
Subsidized Loans are need-based, meaning that your Student Aid Index (SAI) is taken into consideration when awarding this loan. Unsubsidized loans are non-need-based, meaning they can be awarded to any student as long as other eligibility requirements are met.
Terms of the loan:
- Monthly payments begin 6 months after the student is no longer enrolled in college at least half-time.
- The Direct Loan Program offers several different repayment options. You can find out more by visiting https://studentaid.gov.
INFORMATION SPECIFIC TO LOANS
Loan Advising Seminar for New Borrowers
Texarkana College is a public two-year college with relatively inexpensive tuition and fee rates. In an effort to keep student loan debt to a minimum, Federal Direct Loans are not automatically awarded to financial aid students by the college. New loan borrowers are required to attend a Loan Advising Seminar to be informed about federal student loans, conditions of the loans, how the loan process works, and about the benefits of borrowing only what is necessary. This is not a replacement for the federally required Entrance Counseling for Student Loan Borrowers, but a supplement to the loan advising process that will provide students with necessary information concerning their student loans in a small group environment that encourages questions and an interactive learning format. This loan advising seminar is offered through an interactive live webinar. Students should contact the Financial Aid Office to schedule an appointment.
After the Loan Advising Seminar, students may contact the Financial Aid Office for budgeting assistance to help them keep their student loan debt to a minimum.
After completing the session, students will turn in a Loan Request Form. The form will be used as an active confirmation of the exact amount the student is requesting. Provided that the student’s financial aid file has been processed and the student is eligible for the amounts requested, the loan(s) will be added to his/her financial aid award. Loans cannot be added to financial aid awards if the student’s financial aid file has not yet been processed.
Students are encouraged to proceed with the online Entrance Counseling for Student Borrowers and the Master Promissory note at https://studentaid.gov immediately after their Loan Advising Seminar is completed.
Entrance Counseling for Student Loan Borrowers (Online) and Master Promissory Note (MPN)
Prior to the first disbursement, first-time borrowers of Federal Direct Loans at Texarkana College must complete the online Entrance Counseling for Student Loan Borrowers and a Master Promissory Note (MPN) at https://studentaid.gov. The online counseling will provide comprehensive information of the borrower’s rights and responsibilities.
Once completed, an electronic file confirming the completion of the Loan Entrance Counseling and MPN requirements will be sent to Texarkana College. The average time for the electronic confirmation file to process, be sent, and downloaded into the student information system at the college is 24 hours. Students will be able to confirm the college’s receipt of the loan counseling and MPN confirmation files by checking the financial aid documents tab on the Online Financial Aid system.
Federal Direct Loan funds will not disburse to your student account until Texarkana College receives confirmation of the student’s completion of these requirements.
The MPN is a legally binding promise to repay the funds borrowed under the Federal Direct Loan Program at Texarkana College. The MPN also contains the fees, interest rates, terms, and conditions of your student loan.
Exit Counseling for Student Loan Borrowers
Whenever a student graduates, leaves Texarkana College, or drops below half-time enrollment (6 credit hours), they must complete the online Exit Counseling for Student Loan Borrowers at https://studentaid.gov. The online counseling will provide comprehensive information on repayment options, repayment plans, loan deferments, loan forbearances, and debt management strategies.
Once completed, an electronic file confirming the completion of the Loan Exit Counseling requirement will be sent to Texarkana College. Not completing exit counseling requirements would mean you would not have the critical information in the management and repayment of your federal educational loans. Because this is a federally-mandated requirement, Texarkana College may withhold a student’s transcript until exit counseling is completed.