Federal Direct Stafford Loans
There are two Federal Direct 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 Federal Direct Stafford Loan is a federal loan that must be repaid. Ability to participate in the Subsidized Federal Direct Stafford Loan Program is based on calculated need as determined by the FAFSA. The interest rate is fixed at 3.4%. "Subsidized" means that the interest on this loan is not paid by the student while he or she is enrolled in school. The government pays the interest on this type of loan while you are in school.
An Unsubsidized Federal Direct Stafford Loan is also a federal loan that must be repaid. If a student is not eligible for the Subsidized Federal Direct Stafford Loan, as determined by the results of the FAFSA, an Unsubsidized Federal Direct 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%.
TN Hope Scholarship for Non-Traditional Students
The non-traditional student must be a Tennessee resident, complete the Free Application for Federal Student Aid (FAFSA) and be enrolled at an eligible postsecondary institution.
In addition, the student must:
* Be age 25 or older, as an entering freshman in an eligible postsecondary institution or have not been enrolled for at least two (2) years after last attending any postsecondary institution
* Must have parents’ or independent student’s and spouse’s adjusted gross income of $36,000 or less on IRS tax form
* Be continuously enrolled at an eligible postsecondary institution in the fall and spring semesters and maintain satisfactory academic progress
* Have a minimum cumulative GPA of 2.75 after 12 and 24 attempted semester hours
* To continue receiving the HOPE Scholarship, the non-traditional student shall meet the HOPE Scholarship Renewal Criteria mentioned above and must be continuously enrolled at an eligible postsecondary institution in the fall and spring semesters and maintain satisfactory academic progress
The non-traditional student shall continue receiving the HOPE Scholarship until the FIRST of the following terminating events:
* The student has earned a baccalaureate degree; or
* If the student previously received a HOPE Scholarship, the sum of the number of years the non-traditional student received the non-traditional HOPE Scholarship and the HOPE Scholarship from previous years equals five (5) years; or
* Five (5) years have passed since the student enrolled in an eligible postsecondary institution as a non-traditional student
A non-traditional student shall not be eligible for the Aspire Award or the General Assembly Merit Award.