Student Loans
Federal Family Education Loan (FFEL) Programs
Federal SUBSIDIZED Stafford Loan
Awarded on the basis of financial need. The federal government pays your interest while you are in school or during your grace period.
Federal UNSUBSIDIZED Stafford Loan
Not awarded on the basis of financial need. The federal government does not pay the interest. You are responsible for paying the interest on an unsubsidized loan while in school, during the 6 month grace period, during deferment periods and during repayment. You have the option of postponing interest payments while in school. However, be advised that the interest continues to accrue and any unpaid interest will be capitalized (added to the principal of loan) as you enter repayment.
Federal PLUS Loans (Parent Loans)
Parents of dependent undergraduate students with a good credit history may apply for the PLUS loan. Loan amount cannot exceed cost of attendance minus other financial aid. Repayment starts within 60 days after the loan is fully disbursed.
How to Apply
- Apply for Financial Aid (FAFSA) online at www.fafsa.ed.gov or you can submit your application by mail
- Complete the Loan Request Form and return to the Financial Aid Office
- . E-Sign your Master Promissory Note and complete the entrance interview by clicking here
- Loan is transmitted for Guarantee
- Guarantee is received
- Funds are sent to the school by the lender according to the disbursement schedule
Annual and Aggregate Loan Limits
Annual Loan Limits
A degree seeking student enrolled in six credit hours or more is eligible to apply for a student loan.
A undergraduate student may borrow annually (fall, spring and summer) up to:
- $3,500 – Freshman Year
- $4,500 – Sophomore Year
Aggregate Loan Limits
Volunteer State Community College policy allows freshman to borrow a maximum of $7,000.00 ($3,500.00/2 years) and sophomore an additional $9,000.00 ($4,500.00/2 years). This represents a maximum borrowing limit of $16,000. If you have received loans at other schools, they will be considered in the $16,000 limit and you will not be allowed to borrow in excess of the $16,000 limit. This policy is part of our default prevention procedures.
Sample Repayment and Interest Chart
Estimated Loan Repayment Chart (10 Yr Term)
This chart provides only estimated payments and assumes that the interest rate stays the same each year. Under Federal regulations, the interest rates for the FFEL programs are subject to change once a year.
| Total Loan Amount | Monthly Payment at 3% Interest | Monthly Payment at 4% Interest | Monthly Payment at 5% Interest | Monthly Payment at 6% Interest | Monthly Payment at 7% Interest | Monthly Payment at 8.25% Interest |
|---|---|---|---|---|---|---|
| $1,000 | $50 | $50 | $50 | $50 | $50 | $50 |
| $1,500 | $50 | $50 | $50 | $50 | $50 | $50 |
| $2,000 | $50 | $50 | $50 | $50 | $50 | $50 |
| $2,625 | $50 | $50 | $50 | $50 | $50 | $50 |
| $3,000 | $50 | $50 | $50 | $50 | $50 | $50 |
| $3,500 | $50 | $50 | $50 | $50 | $50 | $50 |
| $4,000 | $50 | $50 | $50 | $50 | $50 | $50 |
| $4,500 | $50 | $50 | $50 | $51.79 | $52.25 | $55.19 |
| $5,000 | $50 | $50.62 | $53.03 | $57.54 | $58.05 | $61.33 |
| $5,500 | $53.11 | $55.68 | $58.34 | $63.29 | $63.86 | $67.46 |
| $6,000 | $57.94 | $60.75 | $63.64 | $69.05 | $69.67 | $73.59 |
| $7,000 | $67.59 | $70.87 | $74.25 | $80.56 | $81.28 | $85.86 |
| $8,000 | $77.25 | $81.00 | $84.85 | $92.06 | $92.89 | $98.12 |
| $8,500 | $82.08 | $86.06 | $90.16 | $97.82 | $98.69 | $104.25 |
| $9,000 | $86.90 | $91.12 | $95.46 | $103.57 | $104.50 | $110.39 |
| $10,000 | $96.56 | $101.25 | $106.07 | $115.08 | $116.11 | $122.65 |
| $11,000 | $106.22 | $111.37 | $116.67 | $126.59 | $127.72 | $126.59 |
| $12,000 | $115.87 | $121.49 | $127.28 | $138.10 | $139.33 | $147.18 |
| $13,000 | $125.53 | $131.62 | $137.89 | $149.65 | $150.94 | $159.45 |
| $14,000 | $135.19 | $141.74 | $148.49 | $161.11 | $162.55 | $171.71 |
| $15,000 | $144.84 | $151.87 | $159.10 | $172.62 | $174.16 | $183.98 |
| $16,000 | $154.50 | $161.99 | $169.70 | $184.13 | $185.77 | $196.24 |
Based on a 10 year repayment period. Minimum monthly payment is $50.00
Estimated Monthly Interest Chart for Unsubsidized Loans
This chart provides the estimated monthly interest payments for unsubsidized loans. You may elect to pay this interest on a quarterly basis or let the interest capitalize which is added to the loan principal.
| Loan Amount | Monthly Payment at 5% Interest | Monthly Payment at 6% Interest | Monthly Payment at 6.8% Interest | Monthly Payment at 7% Interest | Monthly Payment at 8.25% Interest |
|---|---|---|---|---|---|
| 500 | $2.08 | $2.50 | $2.83 | $2.92 | $3.44 |
| 1,000 | $4.17 | $5.00 | $5.67 | $5.83 | $6.88 |
| 2,000 | $8.33 | $10.00 | $11.33 | $11.67 | $13.75 |
| 3,000 | $12.50 | $15.00 | $17.00 | $17.50 | $20.63 |
| 3,500 | $14.58 | $17.50 | $19.83 | $20.42 | $24.06 |
| 4,000 | $16.67 | $20.00 | $22.67 | $23.33 | $27.50 |
| 4,500 | $18.75 | $22.50 | $25.50 | $26.25 | $30.94 |
| 5,000 | $20.83 | $25.00 | $28.33 | $29.17 | $34.38 |
| 6,000 | $25.00 | $30.00 | $34.00 | $35.00 | $41.25 |
| 7,000 | $29.17 | $35.00 | $39.67 | $40.83 | $48.13 |
| 8,000 | $33.33 | $40.00 | $45.33 | $46.67 | $55.00 |
| 9,000 | $37.50 | $45.00 | $51.00 | $52.50 | $61.88 |
| 10,000 | $41.67 | $50.00 | $56.67 | $58.33 | $68.75 |
| 15,000 | $62.50 | $75.00 | $85.00 | $87.50 | $103.13 |
| 16,000 | $66.67 | $80.00 | $90.67 | $93.33 | $110.00 |
Your Loan History
The National Student Loan Data System (NSLDS) is the US Department of Education’s central database for student aid. It provides a centralized, integrated view of federal student loans and Pell Grants that are tracked through your entire cycle of financial aid, from approval through closure. You may access your information through the Internet by visiting the NSLDS Student Access website.
Exit Interview
Federal regulations require all student loan borrowers to participate in an exit interview whenever you drop below half time enrollment status, withdraw, graduate, or at the end of spring semester each school year (as required by Volunteer State Community College). To complete this requirement, visitng the Stafford Exit Counseling Link
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