Tri-C is committed to promoting student success through responsible student loan borrowing. Student loans are borrowed money that has to be repaid, with interest, to the U.S. Department of Education. The William D. Ford Federal Direct Loan is a low-interest loan for students to help pay for the cost of college education. Moderate student loan borrowing demonstrates financial responsibility and ensures students incur limited debt to finance their education.

Important Federal Loan News for Borrowers

The COVID-19 relief for federal student loans includes a suspension of loan payments, a 0% interest rate and stopped collections on defaulted loans. If the debt relief program has not been implemented and the litigation has not been resolved by June 30, 2023, payments will resume 60 days later.

FRESH START PROGRAM

On Aug. 17, 2022, the U.S Department of Education announced details of the Fresh Start Initiative.

The initiative makes it possible for borrowers with a federal student loan in default to:

• Regain access to federal financial aid (such as the Federal Pell Grant, Federal Supplemental Educational Opportunity Grant, work-study, etc., if eligible)
• Have access to other federal student aid benefits restored
• Reenter “current” status for the defaulted loan

The Fresh Start Initiative does not apply to all student loans. Students must resolve other eligibility issues, such as ineligible SAP status, before they can meet the requirements for the Fresh Start Initiative. 

Defaulted student loan borrowers can qualify for the Fresh Start Initiative in one of two ways:

1. Students who return to school can apply for Title IV aid by completing the FAFSA® form. The school processes their financial aid eligibility based on the Department of Education guidance.

        Or

2. Students who do not return to school can contact the loan servicer and make payment arrangements by selecting a repayment plan in accordance with guidance in the Fresh Start Fact Sheet.

Visit the Financial Aid Web Resources page for more information on student loans and financial aid.

On Aug. 24, 2022, the Biden Administration and the U.S. Department of Education also made two major announcements regarding student loans, including payment and interest moratorium and two loan forgiveness options.

1. An additional postponement of student loan repayment was extended to June 30, 2023. This means that student loan borrowers who should be in repayment are not required to make payments on their student loans until the end of the repayment extension. However, borrowers can continue paying down the principal on loans borrowed during this time. Payments will automatically resume in June 2023.
2. The loan forgiveness program will provide up to $20,000 in debt cancellation to borrowers who were Pell Grant recipients when they borrowed federal student loans or up to $10,000 in loan forgiveness for borrowers who were non-Pell Grant recipients. To be eligible, borrowers must have an individual income less than $125,000 or up to $250,000 for married couples. 

Student Loan News Announcements

Repayment and Relief Information

• Repayment will begin July 1, 2023, for students who are in a "repayment loan status."
• To provide relief to student loan borrowers during the COVID-19 national emergency, federal student loan borrowers are automatically being placed in an administrative forbearance, which allows you to temporarily stop making your monthly loan payment.
• The suspension of payments will last until June 30, 2023. Read the borrower Q&As to learn more.

Annual Student Loan Acknowledgment

Complete an annual student loan acknowledgment each year to accept a new federal student loan.  The goal is to help students understand how loans will affect their financial future.

Who should complete this?
Borrowers accepting a subsidized/unsubsidized loan, a PLUS loan for graduate/professional students or a PLUS loan for parents should complete this acknowledgement.

How long will it take?
Most people complete the acknowledgment in less than 10 minutes.

What do I need?
(1) Verified FSA ID
(2) For first-time borrowers, you will also need:

• School name
• Degree name
• Field of academic program

What am I acknowledging?

1. If this is your first time accepting a federal student loan, you are acknowledging that you understand your responsibility to repay your loan.
2. If you have existing federal student loans, you are acknowledging that you understand how much you owe and how much more you can borrow.

FEDERAL STUDENT LOAN REPAYMENT RESOURCES:
Default Fresh Start Initiative
Debt Relief
Fresh Start Fact Sheet
Fact Sheet: Public Service Loan Forgiveness (PSLF) Program Overhaul
Public Service Loan Forgiveness (PSLF) Help Tool | Federal Student Aid

NEW STUDENT LOAN BORROWERS:
First-time student loan borrowers are required to complete an Entrance Counseling session as well as the Master Promissory Note prior to borrowing a student loan. The Entrance Counseling session helps students understand their rights and responsibilities as a student loan borrower. The Entrance Counseling and Master Promissory Note must be completed before student loan funds can be approved.

EXISTING STUDENT LOAN BORROWERS:
Students who have borrowed federal student loans are required to complete an Exit Counseling session upon graduating, dropping below six credits or withdrawing from school. The Office of Student Financial Aid and Scholarships also provides comprehensive financial education counseling sessions to help students understand all student loans borrowed and potential repayment options. 

William D. Ford Federal Subsidized Loan (FDLS)

• Up to $3,500 for students (0-29 credits) — first year
• Up to $4,500 for students (30+ credits) — second year
• Subsidized student loan interest deferred while enrolled at least half-time/part-time (six credits)
• Effective July 1, 2012, subsidized loans no longer eligible for interest subsidy during the six-month grace period
• The 2022-2023 interest rate fixed at 4.99% for the Direct Subsidized Loan

William D. Ford Federal Unsubsidized Loan (FDLU)

• For independent students, up to $6,000 in addition to the subsidized student loan
• For dependent students, up to $2,000 in addition to the subsidized student loan
• Unsubsidized student loan interest capitalized while enrolled in at least half-time/part-time status (six credits) and payment deferred
• The 2022-2023 interest rate fixed at 4.99% for the Direct Unsubsidized Loan
• UNSUBL Form for students whose parents are unwilling to provide FAFSA information

William D. Ford Parent Loan for Undergraduate Students (PLUS)

• Parents may borrow loans for undergraduate students to assist with the cost of educational expenses.
• Student must be enrolled in at least six credits per semester.
• The amount of the loan may be up to the cost of attendance, less any financial aid that the student receives.
• Interest rates and amounts are based on approved credit rating and may require a cosigner.
• For the 2022-2023 academic year, the Direct PLUS loan interest rates are fixed at 7.54%.

DISCLAIMER: For student and parent loan borrowers, any information regarding loans borrowed will be sent to the National Student Loan Data Systems (NSDLS) and may be provided to other servicers. 

Nursing Education Assistance Loan Program (NEALP)

• The loan must be repaid if student does not serve as a full-time nurse in Ohio for five years.
• Ohio students must be enrolled at least part-time (six credits) and accepted into an approved Ohio pre-licensure nurse education program.
• The loan may be up to $1,500, based on estimated family contribution (EFC) on the FAFSA and enrollment status.
• Find additional information on NEALP on the Ohio Department of Higher Education Regents website.

Charles E. Schell Loan

• Must be an enrolled student for credit or in a workforce program at Tri-C
• Must be a resident of Ohio, West Virginia, Kentucky or adjoining states
• Must be between the ages of 15-25
• Must be a citizen of and born in the United States
• Must maintain a 2.0 cumulative GPA at Tri-C
• Schell Loan application

Private Education Loan

• Students must complete the FAFSA application.
• Loans are offered by private lenders, with unique criteria and features, based upon the lender.
• Students may be eligible to borrow when enrolled as full-time, half-time or less-than-half-time status in degree, certificate and vocational programs.
• Interest rates may be fixed or variable.
• Learn more about private education loans.

Perkins Loan

Tri-C no longer participates in the Perkins Loan Program. For student who have previously borrowed the Perkins Loan, contact ECSI for questions and concerns regarding repayment.