Loan Information

If you recently accepted all or part of your federal Direct Loan offer(s) in TigerWeb Self-Service, here is some important information for you to know about student loans:

  1. If it is the first time you are borrowing student loans at Chattanooga State, you must complete Entrance Counseling at and a Master Promissory Note (MPN) at Log in using the same FSA ID and password you used for the FAFSA.
  2. The annual loan limits are as follows:
    a. Dependent freshman (less than 30 earned hours): $5,500
    b. Dependent sophomore (30 or more earned hours): $6,500
    c. Independent freshman: $9,500
    d. Independent sophomore: $10,500
    e. Certificate or diploma, dependent: $5,500
    f. Certificate or diploma, independent: $9,500

  3. The lifetime, undergraduate loan limits are as follows:
    a. Dependent: $31,000 (up to $23,000 can be subsidized loans)
    b. Independent: $57,500 (up to $23,000 can be subsidized loans)

  4. Direct Loans require a minimum of half-time enrollment in at least 6 eligible credit hours. Loans will also only pay towards classes required for your current program of study, towards 1 repeat of a class previously passed with a grade of “D” or better, and towards up to 30 attempted hours of learning support classes.
  5. If you are taking full term (15 week) classes, or have classes in both 7-week sessions, then your loan(s) will be disbursed to you in 2 separate payments, approximately 30 days apart. If you only have classes in the first 7-week session (August), or only in the second 7-week session (October), then you might receive the entire semester loan(s) payment in single disbursement – you may owe back a portion, or all, of your loans if you do not complete or attend your classes.
  6. Once a loan payment is made to your student account, you will receive a notification about your right to cancel your loans within 14 days – you will be responsible for repaying any refund you received from your loan(s). After 14 days, you will have to work directly with your loan servicer to return the loan payment(s).
  7. If you wish to make any changes to your loans, you can complete a Loan Modification for the correct aid year in the “Financial Aid” section of TigerWeb.
  8. Interest for subsidized Direct Loans is paid by the government as long as you are enrolled in school in at least 6 eligible credit hours (half-time), so interest is not usually added to subsidized loans until you begin to pay them back. Interest begins accruing on unsubsidized loans as soon as they pay to your account.
  9. Payments for your student loans will be deferred (paused) as long as you are enrolled at least half-time in 6 or more eligible credit hours. After you graduate or drop below half-time enrollment, you start the 6-month grace period for any new student loans before you begin repayment. If you have older student loans, you may have to begin repaying those immediately after graduating or dropping below half-time enrollment. Just remember that interest may continue to be added to loans during the grace period or deferment.
  10. It’s important to stay in contact with your federal student loan servicer(s) so that your loans do not become delinquent or go into default. If you get behind on default on your student loan payments, it can impact your credit score, or the Department of Education can garnish your wages or take payments out of your tax return each year. Student loan delinquency or default can also affect your ability to borrow other loans for important things like a home or auto.