Loans
Loans can be a financial resource to invest in your future and cover any gap remaining for educational expenses. Loans are a type of aid that require repayment. There are two primary types of loans available for students: Federal Direct Loans and Private Alternative Loans.
For additional guidance on loans or other financial aid matters, please contact the Office of Financial Aid at 706-886-7299 ext. 5435 or email at finaid@tfc.edu
Federal Direct Loans
Students can receive loans through the William D. Ford Federal Direct Loan program. These are low-interest loans for students to help pay for the cost of a student’s college education. The Direct loan program offers loans issued by the US Department of Education and not through a bank.
Federal Direct Loans allow you to:
- Borrow without previous credit history or a cosigner
- Defer loan payments until after graduation
- Choose from several repayment plans that are designed to meet your needs
In order to be eligible to receive a Federal Direct Loan, you must:
- Be a U.S. citizen, national, permanent resident or other eligible non-citizen
- Be enrolled at least half-time
- Not be in default or owe a refund to any previous aid program
- Maintain satisfactory academic progress
Interest & Origination
The fixed interest rate for a Federal Direct Subsidized Loan or a Federal Direct Unsubsidized Loan disbursed on or after July 1, 2022 and before July 1, 2023 is 4.99% with a 1.057% principle amount origination fee. For that same period, Federal Direct PLUS Loans have a fixed rate of 7.54% with a 4.228% principle amount origination fee. The origination fee helps reduce the cost of making these low-interest loans. We deduct the fee before you receive any loan money, so the loan amount you actually receive will be less than the amount you have to repay
Acceptance + Disbursement of Loans
- Notify acceptance of loans on TFC Financial Aid Offer
- Complete Master Promissory Note (MPN) for disbursement
- Begin federally required Entrance Loan Counseling
The Office of Financial Aid awards subsidized loans based on financial need from information submitted through the FAFSA. There is no separate application.
Subsidized direct loans do not accrue interest while the student is enrolled at least half-time or during grace and deferment periods, meaning this is the best loan option of all Federal Direct Loans.
The current fixed rate in effect until July 1, 2023 is 4.99%. Students do not have to start making payments on these loans until 6 months post college graduation. The maximum subsidized loan amount can vary throughout the years.
Direct Subsidized Loans – Yearly Amounts
| Dependent or Independent Student | |
| 1st-year Undergraduate | $3,500 |
| 2nd-year Undergraduate | $4,500 |
| 3rd + 4th-year Undergraduate | $5,500 |
Direct Unsubsidized Loans are not based on financial need. These loans are offered upon completion of the FAFSA and its verification each year.
Interest on unsubsidized loans is charged during all periods and begins the first day of classes. The current fixed rate in effect until July 1, 2023 is 4.99%. Students do not have to start making payments on these loans until 6 months post college graduation. However, as an institution, we encourage a plan to pay the interest off while you’re in school and in grace and deferment periods. This usually looks like paying around $20 per month.
The amount students can borrow each year for unsubsidized direct loans depends on their grade level and on whether they are dependent or independent students.
Direct Unsubsidized Loans – Yearly Amounts
| Dependent | Independent | |
| 1st-year Undergraduate | $2,000 | $6,000 |
| 2nd-year Undergraduate | $2,000 | $6,000 |
| 3rd + 4th-year Undergraduate | $2,000 | $7,000 |
Direct PLUS Loans are unsubsidized loans for the parents of dependent students. This loan is taken out in the parents’ name to help pay for education expenses up to the cost of attendance, after all other financial aid. Interest begins to accrue on a Parent PLUS Loan once classes begin, however, payments are not required until 6 months post student graduation.
A parent must be certified as having acceptable credit history. If the Department determines you to be ineligible, you may still borrow a PLUS loan by using an endorser or appealing the credit decision.
The current fixed rate for PLUS loans in effect until July 1, 2023 is 7.54% with a 4.228% principle amount origination fee. We deduct the origination fee before you receive any loan money, so the loan amount you actually receive will be less than the amount you have to repay.
With a PLUS loan, a graduate/professional student or the parent of a dependent student can borrow up to the cost of the student’s education minus other financial aid the student receives.
If a parent’s credit is not approved, even with a cosigner or appeal, the student is generally eligible to receive additional unsubsidized loans in the student’s name up to $4,000 per year.
Private & Alternative Loans
Private student loans, also called alternative loans, are a resource for students who have exhausted all other forms of aid including federal loans.
Students consider alternative loans for the following reasons: student has borrowed the maximum federal direct loan amount for the award year, enrolled for less than 6 hours, parent plus loan denial, unexpected costs, or need additional funds to complete a term or graduate.
Private loans are generally credit based and have higher interest rates with less flexible terms than federal student loans. The college has no involvement in applying for or obtaining alternative loans for students. Once the student has applied for an alternative loan through a loan lender, the lender will then ask TFC to certify the loan.
TFC uses a third party service, Great Lakes FASTChoice, to search for established alternative lenders. Toccoa Falls College does not endorse any specific provider of loans. Applying for a private alternative loan is completely the student’s choice. When searching for alternative loans, it is important that students read and understand all loan regulations, fees, interest rates, benefits, and financial options prior to accepting any private loan.
If you elect to choose a lender that is not on the FASTChoice list, please email finaid@tfc.edu about your loan option so they can assist when it comes time to post these funds to your student account.