Financial Aid Process

You began the student loan process by answering “yes” to the question on the Free Application for Federal Student Aid that asks if you are interested in loans. TSU has determined the maximum amount of loan funds for which you qualify and included this information on your Financial Aid Award Letter.  To ensure your loan funds are disbursed to TSU by the lender of your choice:

1. You must review the Financial Aid Award Letter to determine the amount of your eligibility.
2. You may accept, reduce, or decline the amount of the Federal Stafford Loan indicated on your Award Letter.
3. You must be actively enrolled in a minimum of six hours, meet the minimum satisfactory academic progress requirements, and have completed Entrance Loan Counseling to remain eligible to receive Federal Stafford Loan disbursements.
4. If you are borrowing for the first time at TSU, you must also complete Entrance Loan Counseling and complete your Master Promissory Note. See the instructions below to do this online.

Federal Subsidized Stafford Loan : The federal government pays the interest on the loan while you are eligibly enrolled in school and during a six-month grace period afterward. The amount of your subsidized loan is based on financial need, as determined from your FAFSA results.

Federal Unsubsidized Stafford Loan : You will be responsible for all interest that accrues on your unsubsidized loan from the date of disbursement.  You may choose to defer payment of the interest while you are eligibly enrolled in school, or you may pay the interest monthly. The unpaid interest on your Unsubsidized Stafford Loan will accrue and be capitalized (added to the principal balance of your loan) before you enter repayment.

If you are not fully eligible for need-based subsidized funding, you may get a combination of both Subsidized and Unsubsidized Stafford Loans up to the maximum eligibility, not to exceed the actual cost of attendance.  Your financial aid award letter indicates the maximum amount of your eligibility, based on federal guidelines.

Master Promissory Note: The Master Promissory Note(MPN) serves as a contract between you and your lender. It is a legally binding agreement. By signing the MPN, you promise to repay the amount you borrow and agree to other important terms, regardless of whether you graduate.  Although the MPN is not your your lender cannot send your loan disbursement(s) to the school until your lender has received this document. The MPN is valid for 10 years from the time you first sign it. You will sign the MPN only once. After the original MPN is signed, you can add additional loan amounts by completing an additional Loan Request Form and submitting this document to the Office of Student Financial Assistance. Your request will be evaluated for processing based on loan limits, financial eligibility as determined by federal guidelines, and maintaing of satisfactory academic progress standards as outlined in the University catalog. 

Entrance Counseling: Entrance Counseling sessions are designed to provide critical information on the loan process,deferment, forbearance, default, and rehabilitation of federal student loans. You will be informed as to your rights and responsibilities. These sessions are required by federal guidelines. If you are borrowing for the first time at TSU, you must participate in entrance counseling before your loan will be applied to your student account. You can complete this process 24 hours a day online at em.tsu.edu/financialaid:

1. Click on “Entrance/Exit Counseling.” This will launch a new browser window and will take youwww.mapping-your-future.org.
2. Select “Student Loan Counseling Interview.”
3. Select “Stafford Entrance Counseling.”
4. Follow the instructions online.

Complete your Master Promissory Note at em.tsu.edu/financialaid under “Loans by Web.”

1. Click on “Loans by Web” or the “Completing your Master Promissory Note” icon.*
2. Click on “I am a student borrower.”
3. Click on “Begin Processing Your Loan.”
4. Answer “Are you a Texas resident?”
5. Enter your Social Security number and date of birth.
6. Read and guarantee your loan(s). After you have completed the process, you will get the message,“Congratulations, you have guaranteed a loan in the amount of $... .” If offered both subsidized and unsubsidized loans, you must guarantee both loans.
7. Scroll down to the two blue boxes.
   1. If your lender offers e-signature, click on the box and you will be taken to the lender’s Web site where the MPN can be electronically signed. Some lenders will require your FAFSA PIN to e-sign your MPN.
   2. If you wish to print your MPN, choose the “Print Note” box. There will be two copies of the MPN. Sign, date, and mail one copy to your lender and keep the other copy for your files.
   *The MPN for the 2008-2009 processing cycle will not be available for signing until July 1, 2008.

See your “Account Summary”

Go to em.tsu.edu for information on your loan disbursements. Click on “My Web” and

log on to the TSU system. You can then view “Account Summary by Term” to determine

whether or not loan disbursements have been posted to your account. You can also

retrieve your account balance and refund dates.

Sample Calculations for Loan Disbursements

Loans awarded for the nine-month academic year, which begins in August and ends in May, will be divided into two equal disbursements: one at the beginning of the fall semester and one at the beginning of the spring semester. Lenders may deduct an origination fee of up to 3% prior to disbursing your funds to TSU. An example based on an annual loan amount of $8,500 is shown below:

Semester Fall Spring

Repayment Options: Generally, repayment begins six months after you cease to be enrolled at least half time (six hours). Borrowers should receive a notice within six weeks after dropping below half-time status. The minimum monthly repayment for each loan is $50 but can be more, depending on the amount borrowed. Repayment terms are up to 10 years. Consolidating your loans can extend the repayment period allowed and lower your monthly payments, but the interest rate and total interest you pay over the life of the loan maybe greater.

Responsibilities: The interest rate, fees, and repayment terms for your loan(s) are specified in the promissory notes and/or disclosure statement. Immediately notify your lender if you:

• Change your name, address, or phone number
• Drop below half-time status, withdraw, or transfer
• Change your graduation date

Exit Counseling: You will be informed of your rights and responsibilities as a borrower during exit counseling. These sessions are required by federal guidelines when you leave the University, and we will withhold transcripts and/or a diploma until this requirement has been completed.

 Withdrawal: A student who withdraws from the University must complete Exit Counseling and is subject to Return of Title IV calculations on any funds disbursed during the semester in question. This repayment calculation may require the repayment of part or all of the financial aid disbursed. The Comptroller’s Office will perform the required calculations on the account of any student who withdraws for the semester and will notify the student of any repayment of funds required.

Default: Students who are in default on a loan cannot receive any Student Financial Assistance until loans are rectified. Students must present a clearance letter of non-default status from the lender for eligibility. If you are not eligible for subsequent loans, you must be prepared to pay for your tuition and other expenses with personal resources.