Tennessee Student Loans
Take Your Time and Shop the Market
The Tennessee Student Assistance Corporation (TSAC) is the not-for-profit state agency providing Tennessee residents access to federal loans, scholarships, loan forgiveness programs and a potpourri of information on college financing. TSAC acts as the guaranty agency for the federal family of loans, such as the Stafford and PLUS loans, and works in partnership with EdSouth/EdAmerica and EdFinancial, a loan provider/servicing conglomerate known nationwide. For those students whose careers take them into the service sector, like nursing and teaching, there are a number of attractive loan forgiveness programs available through TSAC’s affiliation with EdAmerica, as well.
About TSAC and Partner Loans
Most states know the import of educating its citizens and one of the best ways to do that is to provide low-cost, low-interest loans that are able to undercut the expense of commercial lender “student” loans. How to do states do this? State governments are able to free up millions of dollars in bond money that is free from federal taxation. When they “sell” these bonds to not-for-profit student loan servicers, they make this money available to state residents. Because the funds are not subject to the heavy tariff, students receive the savings in low-interest loans.
Agencies like TSAC are not in the lending business, per se. So the loans that you think are being extended to you through TSAC are really being managed by another company. As a result you often hear about confusing partnerships between guaranty agencies, lenders and servicing companies, which may leave you scratching your head over exactly who is extending you your loans. For example, TSAC partners with EdSouth/EdAmerica, a nationwide student loan provider and the loans are actually serviced through their EdFinancial Services division. The biggest thing you need to know is that your state agency, TSAC, is positioned to offer you better deals on federal loans and through EdSouth on alternative loans as opposed to your commercial lender or your personal bank.
Alternative Loans for Tennessee Students
When federal funds are not enough, which is most of the time, students typically must seek out scholarships, grants or private loans. Not everyone gets a scholarship, so when practicality wins out borrowers are banging on lender’s doors. Your private bank is ready to extend you their specially packaged student loan with all its high-end features and “low-interest” amenities. But when it comes to low interest a commercial lender can only go so far. This is the difference in a for-profit and a not-for-profit lender as well as public and private.
EdSouth’s alternative private loan program can provide Tennessee students with attractive rates and long-term payment plans they will not find at the corner bank.
Xtra Credit Alternative Loans
Students who need extra money for college after their federal loans have been put toward their tuition may apply for Xtra Credit. These aptly named loans give undergraduate and graduate students a wide range of financing and repayment options.
Applying and Eligibility
To be eligible a student/borrower must agree to a credit check. If your credit is not okay or non-existent, you will need to apply with a co-borrower. More students than you think require a co-borrower and many use a parent, relative or trustworthy friend. The better your co-borrower’s credit, the better your interest rate on the loan.
You can be an undergraduate or graduate student or completely unattached to a degree program. Credit limits may be as much as $100,000 over the course of four years.
Repayment
TSAC offers you the option to take advantage of the Federal Consolidation Loan, which can lend balance and affordability when you have multiple federal loans to repay. If you have problems repaying the alternative loan through EdFinancial you are advised to contact an account manager. No one wants you to default on loan repayment and these professionals are in the business to help you succeed.
