Student Loan Programs

Loans must be repaid and require the signing of a promissory note. There are several types of loans available to students attending TCU.

B-On-Time Loan

The B-On-Time (BOT) Loan is a state loan program with possibilities for loan forgiveness. This is a no-interest loan with a 3 percent origination fee deducted from the disbursement. The loan will be forgiven for students who complete their undergraduate degree with a total number of credit hours that is no more than six hours above what is required to complete the degree, with a cumulative GPA of 3.0 or higher. Applicants must have graduated from high school in May 2003 or later. Full-time enrollment and Texas residency are required. Students may not concurrently receive a B-On-Time Loan and the Texas Grant. If a student does not qualify for loan forgiveness, normal repayment is a minimum of $75 over a period of up to 15 years. Payment begins six months after student ceases to be enrolled half time. Renewal is based on the availability of funds and requires annual filing of the FAFSA, and TCU cumulative GPA of 2.5 or higher. Forgiven BOT loans must be reported to the IRS as taxable income. Funds are limited.

Federal Carl Perkins Student Loan

TCU is the lender; eligibility is determined by the FAFSA. This program has a fixed interest rate of 5 percent. No payment of principal or interest is required nor does the interest accrue until one ceases to be a half-time student (normally carrying six semester hours). Repayment begins nine months after one is no longer enrolled at least half-time. One may pre-pay (early payment) at any time while incurring no additional charge. Normal payment is a minimum of $40 per month over a period of up to 10 years. A signed promissory note is required.

Nursing Student Loan (NSL)

TCU is the lender; eligibility is determined by the FAFSA; funding is limited. This program has a fixed interest rate of 5 percent. No payment of interest or principal is required nor does the interest accrue until one ceases to be at least a half-time student (normally carrying six semester hours). Repayment begins nine months after one is no longer enrolled at least half time. Normal repayment is a minimum of $15 per month over a period of up to 10 years.

Federal Stafford Student Loan (FSSL)

Eligibility is determined by the FAFSA; TCU is not the lender. The applicant may choose any bank, savings and loan association, credit union or other traditional lender that participates in the student loan program. The Office of Scholarships and Student Financial Aid maintains a list of lenders that are used by a number of TCU students and that provide a satisfactory level of service to students. Interest rate for 2008-09 is 6 percent. Normally, the repayment period for the loan is 10 years. The federal government pays the interest on Subsidized Stafford loans during the period of at least half-time enrollment and during the six-month grace period.

Undergraduate students may borrow up to $3,500 during the first year of study, $4,500 during the second year of study and $5,500 per year for subsequent years of study to a maximum of $31,000. Repayment begins six months after the student is no longer enrolled at least half time. The lender may deduct an origination fee up to 1 percent from the proceeds of the loan at the time of disbursement.

Unsubsidized Federal Stafford Student Loan

The FAFSA is required; eligibility is determined by subtracting other forms of aid from the TCU Estimated Cost of Attendance as defined by federal law. Interest rate for 2008-09 is 6.8 percent. Terms are the same as for the FSSL with the following exceptions: Interest on the Unsubsidized Federal Stafford Loan must be paid monthly, quarterly or be added into the principal amount of the loan.

Dependent undergraduate students may borrow up to the following maximums by combining the Subsidized Stafford Loan with the Unsubsidized Stafford Loan: $5,500 during the first year of study, $6,500 per year during the second year of study, and $7,500 per year for subsequent years of study to a maximum of $31,000. The lender may deduct an origination fee up to 1 percent from the proceeds of the loan at the time of disbursement.

Independent undergraduate students may borrow up to the following maximums by combining the Subsidized Stafford Loan with the Unsubsidized Stafford Student Loan: $9,500 during the first year of study, $10,500 during the second year of study and $12,500 per year for subsequent years of study to a maximum of $57,500. The lender may deduct an origination fee up to 1 percent from the proceeds of the loan at the time of disbursement.

College Access Loan (CAL)

The lender is the Texas Higher Education Coordinating Board. This student loan is for Texas residents who are enrolled full time. Financial need is not required, but applicants must submit the FAFSA. A credit-worthy cosigner may be required. Loan amounts are limited to 10,000 per year to a maximum aggregate of $45,000. This program has a 6 percent fixed simple. Interest begins accruing on the date of disbursement. Borrowers with an outstanding balance prior to June 15, 2003, should review their disclosure statements for applicable interest rate information. Repayment begins six months after the student ceases to be enrolled at least half time.

Federal Parent Loan for Undergraduate Students (PLUS)

TCU is not the lender. A parent of an undergraduate student may borrow an amount up to the estimated cost of attendance as defined by federal law minus other forms of financial aid. For loans first disbursed on July 1, 2006, or after, the program has an 8.5 percent fixed interest rate. Borrowers with an outstanding loan balance prior to this date should review their disclosure statements for applicable interest rate information. Repayment of principal and interest begins approximately 60 days following disbursement and allows the borrower up to 10 years in repayment. The loan has a 3 percent origination fee, which will be deducted from the disbursement. Most lenders offer postponement of payments until the student graduates or ceases to be enrolled half-time.

Etta Newby Loan

TCU is the lender. This program requires Texas residency with preference given to Fort Worth high school graduates. A FAFSA must be filed. Applicants must have at least a 2.5 overall GPA. The maximum borrowing is $2,400 per year, $8,000 aggregate. There is no interest charged; however, recipients are expected (not required) to make contributions to the fund after the debt is repaid. Repayment begins one month after the student graduates or ceases to be at least a half-time student at TCU. Funds are limited.





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