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.
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, as well.
About TSAC
Most states know the importance 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 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 managed by a wide variety of lenders. 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. The main point is your state agency, TSAC, is positioned to offer you better deals on federal loans in conjunction with reciprocating lenders.
Alternative Loans for Tennessee Students
When federal funds are not enough to meet all the costs of college attendance students typically must seek out scholarships, grants or private loans. Not everyone gets a scholarship, so when practicality wins out borrowers often turn to alternative or private student loans. Plenty of lenders extend private loans, but if you choose impulsively you could end up with a very costly debt.
Before you turn to a private student loan, first apply for the maximum amount of federal loans, and apply for any scholarships and grants for which you may reasonably qualify. At this point a private student loan could serve as a useful financial tool. If possible borrow the least amount of money you may need just cover your education costs. Borrow more and it could ultimately add up to thousands once interest accrues.
Applying and Eligibility
To be eligible for alternative loans 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’ll quickly discover private student loans designed to offer flexible solutions for all types of students, including undergrads, grads, part-time and even continuing education programs.
