Get Your Student Loan Education Right Here!
Borrower Benefits*
0% Origination Fee for Stafford Loans TTCU borrowers will have the 1.5% Origination Fee paid for them on Stafford loans.
0% Federal Default Fee TTCU borrowers will have the 1% Federal Default Fee paid for them. This is a benefit that other student loan lenders may not offer to their borrowers.
1% TOPTM Principal Reduction TTCU borrowers earn a 1% reduction of their Stafford or PLUS loan principal by making their first three payments of principal and interest on time.
1.5% TOPTM Interest Rate Reduction TTCU borrowers will receive a 1.5% reduction to their Stafford or PLUS loan interest rate by making the first 12 payments of principal and interest on time.
1% EZ Pay Discount TTCU borrowers will receive a 1% reduction to their interest rate by signing up for auto debit - a savings available from day one of repayment.
* Borrower benefits are subject to change. Details at OSLA.org
TTCU participates in the Federal Family Education Loan Program (FFELP) offering Federal Stafford loans, Parent Loans for Undergraduate Students (PLUS) and Graduate PLUS loans. Click here for a list of definitions of student loan terms. When applying for Financial Aid, use TTCU's Lender code: 831323. To use TTCU as your lender, you will have to be a member of TTCU, click here to request an application for membership or here for more information.
Stafford Loans
Federal Stafford loans are available to undergraduate, graduate and professional students. Qualifying for a Stafford loan is not dependent on credit history or credit worthiness, but a borrower must be enrolled in school at least on a half-time basis and must meet certain other federal financial aid eligibility criteria. Completion of the Free Application for Federal Student Aid (FAFSA) is required to determine eligibility.
There are two types of Stafford loans - Subsidized and Unsubsidized. Subsidized Stafford loans are "need-based" with loan amounts determined by the school's financial aid office using federal financial aid guidelines. On Subsidized Stafford loans, the government pays the interest until repayment begins.
Some students are eligible to receive an Unsubsidized Stafford loan to help pay their cost of attendance regardless of need. On Unsubsidized Stafford loans, the borrower is responsible for all interest that accrues on the loan. Most Unsubsidized Stafford borrowers allow their in-school interest to be added to their loan balance (capitalized) rather than paying it while in school.
The school financial aid office determines whether the student's loan will be Subsidized, Unsubsidized or both.
The Stafford loan interest rate is fixed at 6.8%.
Repayment on Stafford loans is not required until six months after the student is no longer enrolled on at least a half-time basis. Generally, a Stafford loan must be repaid within a 10-year period to the loan holder.
Fees
The federal government requires the borrower to pay an Origination Fee up to 1.5% of the amount of the loan. This fee is paid by TTCU on your behalf (some exceptions may apply.)
The guarantor of your loan may collect an additional 1% Federal Default Fee. If you get your Stafford loan through TTCU, OSLA will pay the Federal Default Fee for you if it's not paid by the loan guarantor.
Loan Limits
For 2007-2008, Stafford loans are subject to the following annual loan limits:
Dependent Undergraduate Students
| First Year |
$3,500 |
| Second Year |
$4,500 |
| Third Year and Beyond (each year) |
$5,500 |
| Maximum Total Debt |
$23,000 |
Independent Students
| First Year |
$7,500 |
| Second Year |
$8,500 |
| Third Year and Beyond (each year) |
$10,500 |
| Maximum Total Debt |
$46,000 |
Graduate Students
| Each Year Beyond |
$20,500 |
| Maximum Total Debt |
$138,500 |
PLUS Loans
The PLUS loan program allows parents to borrow the entire cost of attendance (less other aid) for each dependent child that is enrolled at least half-time. For example, if the cost of attendance is $12,500 and the student receives $4,000 in other aid, the PLUS loan amount may be up to $8,500.
The Graduate PLUS loan (Grad PLUS) program allows graduate and professional students to borrow under the PLUS loan program up to their total cost of attendance minus financial assistance received through other financial aid programs including the Subsidized and Unsubsidized Stafford loan programs.
Applicants for the Graduate PLUS loan must complete the FAFSA and must first exhaust any funds available under Stafford loan programs before applying for the Graduate PLUS loan.
The interest rate for PLUS loans (Parent and Graduate) is fixed at 8.5%.
A credit check is performed on all PLUS loan applications. If the parent borrower has an adverse credit history, they may be denied a loan. If this occurs, the student may be eligible to borrow additional amounts in their own name under the Unsubsidized Stafford loan program. A Graduate PLUS applicant may also be denied a loan due to an adverse credit history.
The federal government requires the PLUS borrower to pay an Origination Fee of 3%; the guarantor may collect an additional 1% Federal Default Fee. If you get your PLUS loan through TTCU, OSLA will pay the Federal Default Fee for you if it is not paid by your loan guarantor.
Repayment on all PLUS and Grad PLUS loans begins immediately after funds have been fully disbursed. However Grad PLUS borrowers may receive an In-School Deferment and defer payments until a drop in enrollment below half-time upon request.
Should You Borrow?
The reality is that with the cost of college tuition rising, it is likely that you will need to borrow at least some of the money to cover your costs. Research has shown that individuals with a bachelor's degree earn 75 percent more than those with only a high school education. Those with graduate or professional degrees may earn even more.
Keep in mind tat what you borrow must be paid back. Defaulting on a student loan will affect your credit history and your ability to make major credit purchases - not to mention the added burden of additional collection costs for re-establishing payment on a defaulted loan.
Generally, Stafford and PLUS loans must be paid off within 10 years. Make an estimate of what resources you will have available to repay your loans and do not borrow more than you can afford to pay back.
Stafford Application Process
Step 1: Complete the Free Application for Federal Student Aid (FAFSA). You should also apply for a FAFSA PIN number. This PIN number is required to complete the online application. Click here to apply. It may take several weeks to receive your PIN number.
Step 2: You and the school(s) indicated on your FAFSA will receive a Student Aid Report (SAR). Check your SAR for accuracy and make any changes or corrections immediately.
Step 3: You will receive a Financial Aid Award Letter from your school notifying you of the financial aid that has been awarded to you including available loan amounts. Respond immediately to this letter as instructed by the school. If you choose to borrow through the Stafford or PLUS loan programs, you will be required to choose a lender. Your lender code will be 831323 for TTCU.
Step 4: Sign your Stafford loan Master Promissory Note (MPN) with an electronic signature at www.OSLA.org or according to instructions issued to you by your school. First-time Stafford loan borrowers are also required to participate in Student Loan Entrance Counseling as directed by your school.
PLUS Application Process
Applying for a PLUS loan is basically the same as for a Stafford loan. A credit check will be performed. However, financial need is not evaluated in determining a parent's eligibility for this loan. Parents should complete a PLUS Master Promissory Note which may be done electronically at www.OSLA.org or according to instructions issued by the school.
Applicants for the Graduate PLUS loan must first apply for a Stafford loan before applying for the Graduate PLUS loan.
Additional Tips
Financial aid is defined as any financial resource that a student may receive to assist in meeting the cost of attending college. In addition to student loans, these resources include need-based aid (federal and state grants and student employment) awarded based upon the student's and the family's ability to meet college costs. Scholarships are usually based on academic merit or talent. Students must apply for financial aid annually and demonstrate financial need as determined by regulations established by the U.S. Federal Government.
To determine your eligibility for federal aid and many of the state and institutional need-based aid programs requires completion of the FAFSA. This should be completed as close to January 1 as possible for the following school year. The FAFSA is available from high school counselors, college financial aid office or online at www.FAFSA.ed.gov.
Grants and scholarships are limited so find our each school's financial aid application deadline and do not miss it.
