All student loans, regardless of type, represent debt that must be repaid.  Students are not required to accept the loan portion of their financial aid packages. We urge all first-time borrowers to spend some extra time learning about the loan process so that they can make informed choices throughout their education.

Federal Stafford Direct Loans

To be eligible for a Federal Stafford Direct Loan:

• Be a U.S. Citizen or Permanent Resident
• Complete the Free Application for Federal Student Aid (FAFSA)
• Be enrolled at least halftime in a degree seeking program
• Be maintaining Satisfactory Academic Progress to continue to receive the loans

This loan may be Subsidized or Unsubsidized (or a combination of both). The type of loan you are offered is based upon the results of the FAFSA. Award amounts are determined by your grade classification.  These loans are administered by the U.S. Dept of Education.This loan may be Subsidized or Unsubsidized (or a combination of both). The type of loan you are offered is based upon the results of the FAFSA. Award amounts are determined by your grade classification.  These loans are administered by the U.S. Dept of Education.

• Subsidized Loan: The Federal government pays the interest on this loan while you are in school at least half time, during your six month grace period after you leave school, and during any deferment periods.
• Unsubsidized Loan:  You will be charged interest on this loan from the time the loan is disbursed until it is paid in full. You may allow interest to accumulate until repayment, at which time it will be capitalized. We encourage you to make quarterly interest payments, if possible.

2010-11 Interest Rates (for loans made from July 1, 2010-June 30, 2011) while in repayment:

	Subsidized	Unsubsidized
Undergraduate	4.5%	6.8%
Graduate	6.8%	6.8%

Federal Direct PLUS Loan for Parents

To be eligible for a Federal Direct PLUS loan for Parents:

• Complete the Free Application for Federal Student Aid (FAFSA)
• Be enrolled at least halftime in a degree seeking program
• The parent must have a good credit history
• The student must be meeting Satisfactory Academic Progress
• Parents be a U.S. Citizen or Permanent Resident

This is a loan for the parent of a dependent student to borrow to meet the educational expenses. (A stepparent may be eligible to borrow if income and assets were reported on the FAFSA

Interest Rates

Direct PLUS loans have a fixed interest rate of 7.90%.

Federal Direct PLUS Loan for Graduate Students

To be eligible for a Federal Direct PLUS Loan for Graduate Students:

• Be a U.S. Citizen or Permanent Resident
• Complete the Free Application for Federal Student Aid (FAFSA)
• Be enrolled at least halftime in a degree seeking program
• Be maintaining Satisfactory Academic Progress to continue to receive the loan
• A graduate student will be required to meet with their financial aid counselor to determine eligibility and complete a Grad PLUS application.

Interest Rates

Direct PLUS loans have a fixed interest rate of 7.90%.

Teacher Loan Forgiveness Program-Click Here for more information.

Please follow these steps to borrow the student loan(s) offered to you:

(1) Log into your MyStthom account and accept the loan(s) you wish to borrow

(2) Proceed to Direct Loan website to sign electronic Master Promissory Note (eMPN). 

1. Open your browser and go to https://studentloans.gov/
   
2. Under "Manage My Direct Loan" sign in, using the same PIN number you used to e-sign your FAFSA form.
   
3. If this is your first time borrowing a student loan, select "Complete Entrance Counseling" and continue throughout that process
   
4. All students need to select "Complete Master Promissory Note" 
   
   
5. Click "Subsidized/Unsubsidized" on the next page and continue throughout eMPN process
   
6. Enter reference information, including the addresses and phone numbers of two references.
   
   
7. Read all terms and conditions
   
8. Review and e-sign your eMPN.
   
9. Log out, you are finished!

If you have been offered a Federal Direct Parent PLUS Loan your parent must apply for this loan. Please click here for a PLUS Loan Pre-Applicaton OR your parent can apply online at www.studentloans.gov using their FAFSA Pin number.

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When choosing a private education loan, you should compare the loan terms offered by several programs in order to choose the best fit for your situation. If you have any questions, your counselor is available to assist you, feel free to contact your counselor at any time for questions.

Things to consider when researching Alternative Loans:

• these loans will require a credit check
• these loans MAY have fixed interest rates & others will be variable 
• there could be fees attached to the loan, dependent upon your credit score or your cosigner's credit score
• you maybe required to have a credit worthy cosigner
• repayment terms

Most lenders have direct links to their alternative loan application via their website, to view these please click here. This list is by no means exclusive. If you wish to borrow from a lender not on this list, you may do so. Another resource for finding active private education loan programs is FinAid.org.

Self Certification Form-Regardless of which private loan program you choose, you will need to complete a self-certification form before receiving your first disbursement of loan funds. Your lender will probably provide this form to you during the application process. You may also download the form HERE.

In Section 2 of the self-certification form, you will be asked to provide the following three dollar amounts:

A. Student's cost of attendance for the period of enrollment covered by the loan
B. Estimated financial assistance
C. Difference between amounts A and B

You can find the amounts for items A and B in your mystthom account. For item A, use the figure listed in your mystthom financial aid tab.  This is the dollar amount next to Fed Year COA. For item B, this is the amount listed within the Aid Summary For Aid Year chart, under 'Offered' column, 'Total' row.

If you have trouble locating these figures, please contact the Office of Financial Aid for assistance.