Student Loans
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Federal Perkins & National Direct Loans -Deferment Options
Table 1-5: Deferments for Federal Perkins and National Direct Loans
Borrower is eligible to defer repayment: National Direct Loan made before 10/1/80 National Direct Loan made on or after 10/1/80 but before 7/1/93 Perkins Loan made before 7/1/93 Federal Perkins and Direct Loans made on or after 7/1/93 While enrolled at least half-time (medical internship/residency excluded) Yes (1) Yes* Yes* Yes*(2) While seeking and unable to find full-time employment No No No Yes*
Up to 3 yearsWhile experiencing periods of economic hardship No No No Yes*
Up to 3 yearsWhile engaged in service that qualifies for cancellation No No No Yes* While serving in an eligible internship/ residency No Yes*
Up to 2 yearsYes*
Up to 2 yearsNo While a member of U.S. Army, Navy, Air Force, or Coast Guard Yes
Up to 3 yearsYes*
Up to 3 yearsYes*
Up to 3 yearsNo While a Peace Corps volunteer or Vista volunteer Yes
Up to 3 yearsYes*
Up to 3 yearsYes*
Up to 3 yearsNo While a full-time volunteer for a tax-exempt organization in service comparable to Peace Corps or Vista No Yes*
Up to 3 yearsYes*
Up to 3 yearsNo While an officer in the Commissioned Corps of U.S. Public Health Service No Yes*
Up to 3 yearsYes*
Up to 3 yearsNo While temporarily totally disabled or unable to attend school or work because caring for temporarily totally disabled spouse/dependent No Yes* (3)
Up to 3 yearsYes* (4)
Up to 3 yearsNo While on full-time duty as a member of the NOAA Corps No No Yes*
Up to 3 yearsNo While a mother of preschool-age children and starting or returning to work at salary no more that $1 above minimum hourly wage No No Yes*
Up to 3 yearsNo During period of hardship to the borrower, (prolonged illness or unemployment)** Yes Yes Yes No During forbearance, if the borrower's Title IV loan repayment obligations equals or exceeds 20% of borrower's gross income or borrower qualifies for other acceptable reasons ** Yes Yes Yes No Notes:
- Defense Loans made before October 1, 1980, allow deferments of up to 3 years for students enrolled less than half- time
- Includes graduate fellowship, fellowship-supported study, and approved rehabilitation programs
- Spouse only
- Spouse or other dependent
*This deferment is followed by a six-month grace period before repayment begins; during the grace period, principal need not be paid and interest does not accrue.*
**Principal may be deferred, but interest continues to accrue**
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Title IV ETSU Administered Loans - Cancellation Information
Table 1-6:Cancellations for Federal Perkins, National Direct, and Defense Loans
Type of Service Defense Loans (Made before 7/1/72) National Direct Loans (Made 7/1/72-6/30/87) Perkins Loans (Made after 6/30/87) Perkins or Direct (Made after 7/22/92) TEACHER Full-time teacher in math, science, foreign languages, bilingual education, or in other fields designated as teacher shortage areas None None None 15% first and second years; 20% third and fourth years; 30% fifth year Full-time teaching handicapped children 15% per year up to 100% 15% first and second years; 20% third and fourth years; 30% fifth year 15% first and second years; 20% third and fourth years; 30% fifth year 15% first and second years; 20% third and fourth years; 30% fifth year Full-time teaching in special education None None None 15% first and second years; 20% third and fourth years; 30% fifth year Full-time teaching in low-income schools 15% per year up to 100% 15% first and second years; 20% third and fourth years; 30% fifth year 15% first and second years; 20% third and fourth years; 30% fifth year 15% first and second years; 20% third and fourth years; 30% fifth year Full-time teaching in elementary, secondary, or higher education schools 10% per year up to 50% None None None EMPLOYMENT Nurses and Medical Technicians providing Health Care Services None None None 15% first and second years; 20% third and fourth years; 30% fifth year Full-time employee of a public or nonprofit child or family service agency, providing services to high-risk children from low-income communities and their families None None None 15% first and second years; 20% third and fourth years; 30% fifth year Full-time qualified professional provider of early intervention services None None None 15% first and second years; 20% third and fourth years; 30% fifth year Service in U.S. Armed Forces in an area of hostility 12.5% per year up to 50%; 4 year max 12.5% per year up to 50%; 4 year max 12.5% per year up to 50%; 4 year max Full-time law enforcement (advances on or after 11/29/90) None None 5% first and second years; 20% third and fourth years; 30% fifth year 5% first and second years; 20% third and fourth years; 30% fifth year Full-time service as staff member in a Head Start Program None 15% per year up to 100% 15% per year up to 100% 15% per year up to 100% Full-time Peace Corps/ VISTA Volunteer Services None None 15% first and second years; 20% third and fourth years 15% first and second years; 20% third and fourth years (Perkins) Total and permanent disability; death; qualified bankruptcy 100% 100% 100% 100%
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Return of Title IV Federal Student Aid - Policy
Return of Title IV Federal Student Aid
(This policy is based on 34 CFR, Section 668.22 of Title IV of the Higher Education Act of 1965, as amended.)This requirement applies to you ONLY if:
- You receive federal student aid, and
- You withdraw prior to completing 60% of the period for which the aid was provided.
The federal law requires federal aid recipients to "earn" the aid they receive by staying enrolled in college at least half time. Students who withdraw prior to completing 60% of the semester for which they received federal student aid may be required to return some or all of the aid they were awarded.
The law assumes that you used the Title IV student aid to pay your institutional charges -- tuition, fees, dorm room, and board. Thus, if you withdraw prior to completing 60% of the semester for which you were awarded aid, a pro-rata amount of your aid must be returned to the federal government.
First, the University will restore to the appropriate federal fund source a proportional share of the institutional charges that you paid. In general, the effect of this "return of Title IV aid" by the institution will be to reduce your outstanding loan balance. Second, if the amount returned by the University is not enough to repay the entire "unearned" amount of student aid according to the length of your enrollment, you will be required to return portions of the federal student aid you received to pay non-institutional charges.
Amounts that must be returned to federal aid sources, whether by the University or by you, will first be applied to your federal loans. With respect to any amount you owe after the University has returned its share, you will be permitted to repay loans based on the original terms of the loan. In the event you received a grant or scholarship from a Title IV source you may be required to return portions of the grant or scholarship. In the case of "unearned" portions of federal grants or scholarships, you will be expected to pay 50% of the "unearned" portion immediately.
Any refund due to you from the University for amounts you paid to cover institutional charges, will first be applied to obligations to return "unearned" aid. Thus, portions of institutional refunds may be applied on your behalf to your outstanding Stafford or Perkins loan or to the federal portions of your grant or scholarship and not actually refunded to you.
DISTRIBUTION ORDER OF REFUNDS -- Refunds will be credited back to student aid program accounts in the following order:
Title IV Programs
- Unsubsidized Federal Stafford Loans
- Subsidized Federal Stafford Loans
- Federal Perkins Loans
- Federal PLUS Loans
- Federal Pell Grants
- ACG Grant
- Smart Grant
- Federal SEOG program
- Teach Grants
Other refunds will be credited to:
- State, private or institutional aid
- The student
Refund Appeals Procedures
Students contesting the refund policy may file a refund appeals which may be obtained in the Comptrollers Office, 202 Dossett Hall. It is the students responsibility to provide written documentation substantiating your reasons for the appeal. Withdrawals or reductions in course load due to personal illness/injury require a statement from a licensed medical physician stating withdrawal was necessary due to the health of the student; a death in the immediate family can be verified with a copy of the obituary. Immediate family includes spouse, child, stepchild, parent, stepparent, foster parent, parent-in-law, sibling, grandparents, and grandchildren. Other reasons must be supported by written documentation.
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Refund Appeals - Forms
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University Sponsored Loans
E.G. Hughes Enrollment Loan - Policy & Form
Available to assist current and former students with an outstanding account balance preventing them from future registration. University Enrollment loan funds of up to $2,000 may be available, as funds permit, to assist ETSU students with an outstanding balance from a prior term.
University/E.G. Hughes Kick-Start Loan - Policy & Form
Available to aid students with emergency needs or unexpected expenses related to educational costs (i.e.; books) up to $500.00. This loan is not used for tuition and/or fee payment.
University Short-Term Loan (*Loan Funding Currently Unavailable*)
Available to fund up to one-half university fees as funds permit. This loan is to assist ETSU students without sufficient income or financial aid to pay fees by the fee payment deadline. This loan is not available for Summer terms.
E.G. Hughes Emergency Event Loan - Policy & Form
Available to assist ETSU students when emergency situation occurs during the semester. Examples include rental evictions, fires, utility disconnections, illness or injury as evidenced by medical documentation. As funds permit, student may receive up to $1,000 to assist with their unexpected expenses and remain enrolled.