Links

• Loan Application 2010-2011
• Entrance Counseling / Sign your Master Promissory Note for your Direct Loan
• Exit Counseling - Direct Loan (Loans for 2010-2011 and beyond)
• Exit Counseling - Stafford (Loans prior to 2010-2011)

Important information if you have a student loan

Because of a recently passed federal law, starting July 1, 2010, all new federal student loans will be direct loans through the U.S. Department of Education.

If you currently have a student loan, what does this change mean to you?

• Everyone for the 2010-11 academic year will need to sign a master promissory note and complete entrance counseling regardless of whether they had a loan last year
• When you apply for a student loan through Roane State's Financial Aid office, you will receive information about how to sign a new master promissory note and how to complete the entrance counseling.

How to Apply for a Student Loan

1. Apply for financial aid (FAFSA) online at http://www.fafsa.ed.gov/.
2. Receive a postcard from RSCC Financial Aid Office requesting information to complete file.
3. Submit requested forms (loan application will not be processed until your FAFSA file is complete and verified in our office and enrolled in 6 hours).
4. Submit loan application on-line.
5. Allow at least 4 weeks to certify loan.
6. Check your Roane State email via RaiderNet for instructions as to when to complete Entrance Counseling and electronically sign MPN.
7. Make arrangements to cover your fees if funds are inadequate by deadlines posted in class schedule.

If you are unable to cover your fees, contact the Financial Aid Office about a waiver.

Terms & Definitions

• Accrued Interest: the interest that accumulates on the unpaid balance of a loan(s).
• Default: failure to repay your loan(s) according to the terms of the promissory note. To recover money the school, lender or loan servicer, and/or state or federal government may pursue legal action.
• Deferment: temporary postponement of your student loan repayment by your lender or loan servicer. You will need to contact your lender or loan servicer regarding the qualifications and requesting a form.
• Disbursement: the lender releases funds to the school on your behalf.
• Forebearance: permission from your lender or loan servicer to postpone, reduce, or extend loan repayment because of a serious hardship. Interest will continue to accrue during the forebearance. You will need to contact your lender or loan servicer regarding the qualifications and requesting a form.

FAQs for Direct Lending

Will I still be able to continue borrowing through the same lender as last year?
No.  As of July 1, 2010 all loans will be processed exclusively through the Direct Loan Program.  You will be borrowing directly from the government.

What happens to the Stafford loans I borrowed in previous years?  Will they still be deferred now that Roane State is changing its loan process?
Your Stafford loans from previous years should remain in deferment as long as you are enrolled above half time (6 credit hours) for your program.  You are responsible for notifying your lender if your enrollment status changes.

How will repayment work if I have FFEL and Direct loans?
You will have to make separate payments to each lender.  You can also choose to consolidate with the Direct Loan program if you would like to make only one monthly payment.

How can I consolidate my loans with the Direct Loan program?
You may go to studentloans.gov for more information regarding consolidation.

Where can I find information about who services my other federal loans?
You can find information about the servicers of your other loans at www.nslds.ed.gov.  You will use your pin number from the FAFSA to access your information.