Federal Loans

Students and their families may qualify for different loan options to help manage costs and allow repayments over time. Federal loans are borrowed and must be repaid after you graduate, stop attending at least half-time, or withdraw from school. Interest rates are usually lower than commercial loans. To file your FAFSA, please visit studentaid.gov.

Undergraduate Stafford Loans

Blackburn College Loan Philosophy:

Blackburn College offers eligible students Direct Loan amounts up to the total of their direct costs (minus any other financial aid), not to exceed the federal annual loan limits. Students may be eligible for additional loan amounts up to the annual Cost of Attendance, but must submit a request to the Financial Aid Office (financialaid@blackburn.edu) to determine any additional loan eligibility.

Eligibility Requirement:

  • FAFSA required
  • No credit check
  • Students must be U.S. citizens or permanent residents enrolled at least half-time in a qualified program at a participating school
  • Not be in default on a prior student loan
  • Not convicted of a drug offense while receiving prior federal financial
    aid
  • Total aid, including student loans, cannot exceed the school’s total cost of attendance (tuition and fees, room and board, transportation, personal and miscellaneous expenses).
  • Subsidized loans are need-based loans
  • Unsubsidized loans are available regardless of need.

Annual Loan Limits:

Dependent students:

  • Freshmen – $5,500 (including up to $3,500 subsidized)
  • Sophomores – $6,500 (including up to $4,500 subsidized)
  • Juniors & Seniors – $7,500 (including up to $5,500 subsidized)

Independent students:

  • Freshmen – $9,500 (including up to $3,500 subsidized)
  • Sophomores – $10,500 (including up to $4,500 subsidized)
  • Juniors & Seniors – $12,500 (including up to $5,500 subsidized)

Aggregate Loan Limits:

  • Dependent students: $31,000.
  • Independent students (undergraduate): $57,500.

Interest Rates for loans disbursed after July 1, 2022 thru June 30, 2023:

4.99% on Subsidized & Unsubsidized Stafford loans.

  • Subsidized loans – You’re not usually charged interest while you are enrolled at least half-time (6 credits or more) and in some deferment periods.
  • Unsubsidized Stafford loans – you are responsible for paying the interest during all periods.

Origination Fees: 1.057%

An origination fee is a percentage of your loan amount charged by the lender for the processing of your loan. Federal student loans have an origination fee; therefore, the amount you may receive as a disbursement may be slightly lower than the amount you accept.

Parent Loans (PLUS)

Blackburn College Loan Philosophy:

Blackburn College offers eligible parents Direct PLUS Loan amounts up to the total of the student’s direct costs (minus any other financial aid).

Parents may be eligible for additional loan amounts up to the student’s annual Cost of Attendance, but must submit a request to the Financial Aid Office (financialaid@blackburn.edu) to determine any additional loan eligibility. 

Eligibility Requirements:

FAFSA is required and is available to parents of dependent students. It is a credit-based loan that cannot show delinquencies in the previous 90 days (some exceptions for extenuating circumstances) and no bankruptcy in the previous five years. The credit requirement can be met by a credit-approved endorser.

Interest Rate for Parent PLUS loans disbursed after July 1, 2022 thru June 30, 2023:
7.54% in the Direct Loan Program

Origination Fees: 4.228%

A loan fee comes out of the amount of money that is disbursed (paid out). This means the money received will be less than the amount that was actually borrowed.

Borrowers are responsible for repaying the entire amount borrowed and not just the amount received.

Interest rates shown above for both student and parent loans are fixed rates. A fixed rate will not change for the life of the loan.

If you have a loan that was disbursed before July 1, 2022, you likely have a different interest rate.

First-time Borrowers

Per federal regulations, first-time borrowers cannot receive a disbursement until 30 days after the first day of their classes. To prevent additional delays, students should enroll in at least 6 credit hours (half-time) which is the required minimum number of credits needed to receive a Federal Direct Loan(s).

What makes a student a first-time loan borrower with the 30-day delay in disbursement?

  • A student who is receiving loans/PLUS loans (including parent borrowers) for the first time
  • A student who has never borrowed a loan/PLUS loan (including parent borrowers) at any prior institution.
  • A student who has borrowed a loan/PLUS loan (including parent borrowers) from another institution previously, but has fewer than 30 credit hours including those that were transferred from a prior institution.

In all of these instances, the student will have a 30-day delay in disbursement.

*Please note that the 30-day Loan Delay will begin on the first day of the student’s semester. For example, if the semester begins on 1/8/24, the loans funds will not be requested until 2/8/24.

*All students wishing to apply for a Subsidized Loan and/or Unsubsidized Loan must complete the Master Promissory Note (MPN) and the Entrance Counseling at studentaid.gov.