Financial Aid- Trevecca Nazarene University - Nashville, TN

Traditional Loans

FEDERAL STAFFORD LOAN PROGRAM

There are two Stafford Loan Programs available for student borrowers, subsidized and unsubsidized. All students who wish to borrow through either of these programs must complete the FAFSA each year.

A Subsidized Stafford Loan is a federal loan that must be repaid. Ability to participate in the Subsidized Stafford Loan Program is based on calculated need as determined by the FAFSA. The interest rate is fixed at 6.8%. "Subsidized" means that the interest on this loan is not paid by the student while he or she is enrolled in school. The government (tax payers) pays the interest on this type of loan while you are in school.

An Unsubsidized Stafford Loan is also a federal loan that must be repaid. If a student is not eligible for the Subsidized Stafford Loan, as determined by the results of the FAFSA, an Unsubsidized Stafford Loan can be an alternative. "Unsubsidized" means that interest will accrue while the student is in school. The student can choose to pay the interest while in school or defer the interest and have it added to the principal balance. The interest on this loan is also fixed at 6.8%.

First time Stafford Loan borrowers that have received an award letter, apply here.

Annual Stafford Loan Limits

Freshman	$3,500
Sophomore	$4,500
Junior	$5,500
Senior	$5,500

Independent students may borrow at increased limits under the Unsubsidized Stafford Loan Program. Aggregate limits for independent and graduate students vary. For more detailed information, please contact the Office of Financial Aid.
Note: Prior to disbursement of Federal Stafford Loans, the lender withholds 3% of the loan amount to cover loan origination and insurance fees.

Stafford Loan Entrance Counseling

First time Stafford Loan borrowers at Trevecca must complete a student loan entrance interview. Please click here to complete your required entrance counseling. Apply Here.

FEDERAL PERKINS LOAN PROGRAM

The Federal Perkins Loan Program is also a federal loan that must be repaid. It provides money to students with established need at a low interest rate and long-term repay. The loans bear no interest to the borrower until nine months after graduation or interruption of study; then the interest rate is 5% of the unpaid balance. The minimum monthly payment is $40.00. Loan repayment may be deferred for periods during which a borrower
1.    Is at least a half-time student.
2.    Is pursuing a course of study in an approved graduate fellowship program or approved rehabilitation training program for disabled individuals excluding a medical internship or residency program.
3.    Is unable to find full-time employment but not in excess of three years.
4.    May be suffering an economic hardship but not in excess of three years.
5. Is engaged in service described under the cancellation provisions.

Awarding of this loan is based on need and availability of funds. Completion of the FAFSA is required. It is very important to apply as early as possible since funds are limited.

Your award letter will notify you if you have been awarded a Perkins Loan. You will be notified by the Office of Accounting about completing your Perkins Promissory Note.

FEDERAL PLUS LOAN PROGRAM

The PLUS Loan is a loan that is available for parents of undergraduate students to borrow. It is a federal loan and it must be repaid. The interest rate is fixed at 8.5%. Eligibility is based on credit history as determined by federal guidelines and the lending institution. The maximum loan limit is not to exceed the student's federal budget less any additional assistance the student may be receiving. Prior to disbursement, the lender withholds 3% from the loan amount to cover loan origination and insurance fees.

First time Plus Loan borrowers that have received an award letter, apply here.

Private Loans
Private credit based loans are an option for students that have remaining financial need after all institutional, state and federal resources have been awarded. Private loans should only be considered once all federal loan options have been utilized. Private loans are not part of the federal aid program and are not eligible for consolidation with federal loans. These loans are credit based and have a variable interest rate. In some cases a credit worthy co-signor may be required to qualify.

Apply here for private student loans.

REPAYMENT

For the Federal Stafford Loan Programs, loan repayment begins six months after you graduate or after you are no longer at least a half-time student.
For the Federal Perkins Loan Program, loan repayment begins nine months after you graduate or after you are no longer at least a half-time student.
For the Federal PLUS Loan Program, loan repayment begins 60 days after the second disbursement of the loan.
For loan deferment options, you should contact your lender. If you are not sure who your lender was or if you have any other questions, please contact the Office of Financial Aid.