Select from one of the following Loans to learn more information:
The Perkins Loan is a low interest loan (currently 5%) designed to help undergraduate and graduate students pay for educational expenses. To be considered for a Perkins Loan, a student must:
- have unmet financial need
- have a cumulative college GPA of 2.5 if an undergraduate, a cumulative college GPA of 3.0 if a graduate, or an ACT composite score of 23 if an entering freshman without a college GPA.
Funds are limited; therefore, students who complete their financial aid files by the published priority deadline will be given first consideration. The normal award amount is $1000 per quarter for undergraduates and $1,000 per quarter for graduates. Students are not required to make any payments on this loan while enrolled on at least a half-time basis. There is also no interest charged during this period of enrollment. Repayment of this loan begins 9 months after the date the student ceases to be at least a half-time student.
The Perkins Loan award will not be credited to your student account until you sign a Master Promissory Note in the Financial Aid Office and complete a Perkins Entrance Interview online. In past years, borrowers completed a separate promissory note for each new Federal Perkins Loan. Now, in most cases, you will sign only one Master Promissory Note that will be used for all your Federal Perkins Loans at Louisiana Tech. Your Perkins funds will be credited to your student account by the day after the end of the quarterly drop/add period. Loans without a signed Master Promissory Note and/or Perkins Entrance Interview will be canceled on the 9th class day.
All 2016-2017 Perkins Master Promissory Notes will be mailed to students.
After you graduate, leave school, or drop below half-time enrollment, you have a nine-month grace period before you begin repayment. You will be sent information about repayment, and you will be notified of the date repayment begins. Contact Mary Thomas or Patty Gay in the Comptroller's Office at (318) 257-2031 or firstname.lastname@example.org for additional information about repaying your student loan.
What changed in the 2010-2011 academic year?
The University currently processes Federal Stafford, Federal PLUS, Grad PLUS loans through the Federal Family Education Loan program, in which students and parents borrow from private lenders and banks. Beginning on July 1, 2010, the University participates *exclusively* in the William D. Ford Federal Direct Loan program, in which borrowers obtain loan funds directly from the U.S. Department of Education.
Why did the University change its loan process?
On March 25, 2010, the U.S. House of Representatives and the U.S. Senate passed the The Health Care and Education Affordability Reconciliation Act of 2010 ("HCEARA"-H.R. 4872). This bill makes major changes in several federal student aid programs AND mandated that, effective July 1, 2010, all federal student loans (Stafford, PLUS, and Grad PLUS) will be originated through the Federal Direct Loan Program. The Family Federal Education Loan Program, which permitted private lenders to originate these loans, was eliminated effective June 30, 2010.
"What do I have to do to get my loan funds for next year?"
- As in prior years, you must:
- Complete the FAFSA (Free Application for Federal Student Aid),
- Provide any documents requested by our office.
- Accept or decline your federal student loans on your award letter.
- Complete an Entrance Counseling Sessiononly new direct loan borrowers must complete the entrance counseling session.
- You will then have to complete a new Master Promissory Note for the Direct Loan program before the Department of Education will electronically disburse your funds to Louisiana Tech University.
All Louisiana Tech University students who are borrowing for the first time will need to complete an Entrance Counseling Session. You will also have to complete a direct loan Master Promissory Note (MPN). If your question is "Can I complete the new Direct Loan Stafford MPN now?", the answer is YES, you can.
New Borrower's Information:
Many students rely on federal government loans to finance their education. These loans have low interest rates and do not require credit checks or collateral. The federal loan for students is called the Stafford Loan and is under the William D. Ford Direct Loan Program.
Stafford loans are available for students meeting certain qualifications. If you're a regular student enrolled in an eligible program at least half-time (4 hours-undergraduate or 3 hours-graduate) you may receive a Federal Direct Stafford Loan. You will automatically be considered for a Stafford Loan(s) if you have eligibility. See below for additional information for new borrowers.
- Stafford Loans - Subsidized
- Stafford Loans - Unsubsidized
- Annual Loan Limits
- Stafford Interest Rates
- Borrower's Rights and Responsibilities
- Borrower's Tips for Success
- Stafford Entrance Interview
- Stafford Master Promissory Note
- Loan Prorations
Repaying Your Student Loan:
After you graduate, leave school, or drop below half-time enrollment, you have a six-month grace period before you begin repayment.
- Stafford Exit Interview
- Loan Consolidation
- Deferment Options
- Discharge/Cancellation Provisions
- Forbearance Options
- Military Service
- Repayment Terms
On July 1, 2010 Louisiana Tech University began participating *exclusively* in the William D. Ford Federal Direct Loan program, in which borrowers obtain loan funds directly from the U.S. Department of Education.The Family Federal Education Loan Program, which permitted private lenders to originate these loans, was eliminated effective June 30, 2010.
Federal Direct PLUS Loan Information:
Federal Direct PLUS Loans enable parents with good credit histories to borrow funds to pay the education expenses of each child who is a dependent undergraduate student. Students pursuing a graduate or professional degree with good credit histories can also borrow from the Direct PLUS Loan program. The lender is the U.S. Department of Education (the Department) rather than a bank or other financial institution. The interest rate for Federal Direct PLUS loans first disbursed on or after July 1, 2016, is a fixed 6.31%. The interest rate for Federal Direct PLUS loans first disbursed on or after July 1, 2017, is a fixed 7.00%. Interest is charged on Direct PLUS Loans during all periods, beginning on the date of your loan's first disbursement. You pay a loan origination fee that is a percentage of the principal amount of each Direct PLUS Loan that you receive.
Parent eligibility for a Direct PLUS Loan
- You must be the student's biological or adoptive parent or the student's stepparent, if the biological or adoptive parent has remarried at the time of application.
- You cannot have an adverse credit history (a credit check will be done).
- Your child must be a dependent student who is enrolled at least half-time at a school that participates in the Direct Loan Program.
- Parents and their dependent child must:
- be U.S. citizens or eligible non-citizens
- not be in default on any federal education loans
- not owe an overpayment on a federal education grant
- meet other general eligibility requirements for the Federal Student Aid programs.
An undergraduate student will automatically be awarded a Federal Direct PLUS Loan on their award letter if the student has eligibility. The yearly limit on a Direct PLUS Loan is equal to your cost of attendance minus any other financial aid the student receives. For example, if the cost of attendance is $10,000 and the student receives $5,000 in other financial aid, a $5,000 Direct PLUS Loan would be awarded. See below topics for additional information:
- Applying for a PLUS Loan and the Master Promissory Note (MPN)
- Credit check and endorser alternative
- Loan limits, interest rate, and loan charges
- How a loan is disbursed (paid out)
- Automated payments (electronic debit)
- Trouble making payments
- Consequences of default
Alternative or private loans are available to students who are not eligible for federal financial aid or who need additional funds to meet educational expenses. The student's eligibility is determined by the cost of attendance minus other financial aid.
Because alternative loans are not guaranteed by the federal government, they must be insured privately. This extra cost is passed on to the borrower in the form of higher fees and higher interest rates. In addition, the lender will check your credit history as well as other factors to determine if they will lend to you. Some lenders may require a co-signer based on your credit history. You may be denied by one lender and approved by another because of the different ways they interpret information.
Alternative loans are not for everyone. They are expensive and should only be borrowed when all other resources, such as Stafford or PLUS loans, have been exhausted. Always remember that these are loans of last resort. It is important to keep all borrowing within reasonable bounds. Never borrow more than you believe you will be able to repay.
You should find out the following information before deciding on an alternative loan:
- What is the interest rate and what is it based on?
- When does repayment begin?
- Can principal and interest be deferred?
- When is the interest capitalized?
- How much is the loan origination fee?
Students who are new to the private loan application process may want to review eligibility requirements, lender information, and procedures for processing an alternative loan at Louisiana Tech University.
The Division of Student Financial Aid works with all private loan lenders. We encourage students and families to visit multiple lenders’ websites to check on the benefits, rates, and fees they offer. We do not receive any incentives, nor do we have any agreements with any lender.
The Division of Student Financial Aid reserves the right not to certify an Alternative (Private) Loan. All Alternative (Private) Loans used for Louisiana Tech University’s educational costs must be certified by the school.