Loan Information

The information listed below is to assist students/families with the student loan process. Links to lenders and loan information are located at the bottom of this page.

Students must complete the appropriate year’s FAFSA form for the term they wish to borrow loan funds for, before the office can award loans. Most private lenders require a FAFSA before loans can be certified by the school. Additionally, Federal Direct Student Loans provide significant advantages over private loans, including fixed lower interest rates, no credit check or co-signer requirements for most borrowers, deferment of payments and flexible, income-driven repayment plans.

Once the office receives the student’s FAFSA, we will automatically review the data and award the appropriate federal loan amount, in the student’s name, based on the students grade level (Freshman/Sophomore/Junior/Senior/Graduate) and enrollment status (full-time/part-time). Please note that for federal loans, students must be enrolled at least half-time.

There are also other federal, State and private educational loans for the academic year that are credit-based that can be used to cover remaining college costs after scholarships, grants, and student federal loans are applied.

How these loans work:

• Application Process: Apply via the lender’s website, ideally 1-2 months before tuition is due. The lender evaluates credit history, income, and debt-to-income ratio for the applicant and/or co-signer, if applicable. Application links are posted below.
• Approval & Co-Signers: Since these are credit-based loans, most undergraduate students who apply on their own require a co-signer to be approved or to secure better interest rates. Parents/guardians are usually the applicants for these loans on the student’s behalf.
• Loan Amount: You can borrow up to the Cost of Attendance (https://financialaid.tcnj.edu/about/cost-of-attendance/) minus other financial aid.
• Loan Certification: Once approved, the lender sends the loan to the school for certification to confirm enrollment and validate the loan amount.
• Disbursement: Funds are sent directly to the school, often split across semesters, if the applicant applies for the entire academic year.
• Repayment: Options usually include immediate repayment, paying interest only while in school or full deferment until after graduation. The applicant will need to deal directly with the lender on these options.

Key considerations:

• Interest Rates: These can be fixed or variable, generally based on creditworthiness.
• Apply Yearly: Since costs change between academic years, you need to reapply for each academic year to determine eligibility based on the new cost of attendance. Additionally, a FAFSA must be completed each academic year as well.
• Fixed vs. Variable Rates: Fixed rates stay the same, while variable rates may change.
• Alternatives: Always maximize federal student loans first, as they offer more flexible repayment options and terms.
• Time Frame: Private educational loans typically take 3 to 6 weeks to process from application to disbursement. While initial approval can happen in a few days, the full process involves school certification, which often takes 5–10 business days. It is highly recommended to apply at least one month before tuition is due.

TCNJ Student Loan Code of Conduct