Financial Aid

Financial Aid Available To Those Who Qualify

Federal Grants

Federal Pell Grant

Pell Grants are the foundation of federal student aid. These grants are awarded based on a student’s Expected Family Contribution, Cost of Attendance, and Enrollment Status, and do not need to be repaid. For the 2014-15 award year, Pell Grant amounts will range from $602 to $5,730. Award amounts are not affected by other aid sources. The student should work with the school’s financial aid leader for assistance in completing the application.

How to Apply

All students who have submitted a valid free application for Federal Student Aid (FAFSA) will be considered for Federal Pell Grant and Supplemental Educational Opportunity Grant eligibility. Please take the following steps in order to receive a copy of your financial application and be notified of the grant amount once eligibility is determined.

  1. You must create a Personal Identification Number (PIN) to complete the Free Application for Federal Student Aid (FAFSA) at www.pin.ed.gov
  2. Complete the Free Application for Federal Student Aid (FAFSA). You must include our Federal school code # www.fafsa.gov school Code = You need to enter the school code 017045 for our Stage Road location (Bartlett area) or school code 030249 for our Winchester Road location (Southeast Memphis area) when submitting your application.
  3. Contact the school to notify us that your application has been submitted.
  4. Check your e-mail for your financial award notification letter.

Federal Stafford Loans

Types of Federal Stafford Loans

Federal Stafford Loans are available as subsidized, unsubsidized, or a combination of both types. Students are not required to make payments on either type of loan while enrolled at least half-time at an eligible educational institution. However, students may choose to make regular or interest-only payments while enrolled.

Subsidized Stafford Loans are awarded based on each student’s demonstrated financial need, as determined by Tennessee Academy of Cosmetology’s (“TAC”) financial aid officer and the FAFSA. These loans are interest free while the student is enrolled at least half-time at an eligible educational institution or during authorized grace and deferment periods. Interest is charged when the loan is in a repayment or forbearance status.

Unsubsidized Stafford Loans are awarded regardless of each student’s demonstrated financial need. These loans begin to generate interest charges immediately after disbursement. These charges may be deferred during at least half-time enrollment, grace, and deferment periods, but they will be capitalized (added to the outstanding loan balance).

Federal Stafford Loan Amounts

The amount available in Federal Stafford Loan funding will vary for each student. The type and amount of each loan is determined by TAC’s financial aid office based on demonstrated financial need, class level, other financial aid, and previous borrowing totals.

The maximum borrowing amount and program clock hours will vary from state to state. For more information please contact the financial aid officer.

Interest Rates

First Disbursement of a Subsidized loan for Undergraduate borrowers: Interest rate on the unpaid balance Federal Family Education Loan Program
Interest Rate on unsubsidized loan
Made on or after And made on or before
July 1, 2011 July 1, 2012 3.4% 6.8%
July 1, 2012 July 1, 2013 3.4% 6.8%
July 1, 2013 July 1, 2014 3.86% 3.86%
July 1, 2014 July 1, 2015 4.66% 6.21%

Fees 

All Federal Stafford Loans may be subject to an origination and default fee of up to 2%, taken from the value of the loan at the time it is disbursed to the school. The loan amounts listed above and on financial aid award notifications represent the gross amount (amount before the fees have been paid). Students should consider the fees charged by each lender when choosing their loan provider.

Repayment

Standard loan repayment begins after the loan grace period, or 6 months after the student graduates, leaves school, or drops below half-time enrollment. Standard repayment will initially be scheduled for fixed monthly payments over a 10 years period. Other repayment options are available to fit student’s individual needs.

How to Apply for a Federal Stafford Loan

Students should complete the following steps with the school’s financial aid leader to apply for a Federal Stafford Loan:

  1. For students who want to apply for Federal Student Aid, you must first have a PIN. It can be set up at www.pin.ed.gov
  2. Complete the Free Application for Federal Student Aid (FAFSA)
  3. Accept the desired loan(s) on the Financial Aid Award Notification Letter

Students accepting a Federal Stafford Loan for the first time at this school or students who would like to choose a new lender should also:

  1. Complete an online Federal Stafford Loan Entrance Interview
  2. Select a lender and complete a Master Promissory Note

PLEASE NOTE: A Master Promissory Note can be completed and printed by going to www.studentloans.gov.

If you do not want to complete the MPN electronically, you may complete it using the paper process by going to www.studentloans.gov. If using this method, please return the completed form to the financial aid officer. We will electronically process the loan with the lender you have selected. You may also apply electronically from many lender websites.

Federal Parent Loans (PLUS)

Federal PLUS Loans are long-term, low-interest loans awarded to parents of undergraduate students by this school, which are funded through a bank or other lending agent. PLUS funds can be used to supplement other sources of aid to help meet the family contribution portion of the cost of education. Parents at all income levels are eligible for consideration pending credit approval.

Eligibility for a PLUS Loan

In order to qualify for a PLUS loan, the student for whom the funds are intended must be attending school on at least a half-time basis in an approved program. Eligibility is also based on the borrower’s creditworthiness. Students whose parents are unable to obtain credit approval for a PLUS loan may qualify for additional funding through the Federal Stafford Loan program. Applicants who are denied a PLUS loan based on an adverse credit decision should contact the school to request an account review.

Federal PLUS Loan Amounts

The amount available in Federal PLUS Loan funding will vary for each borrower. The maximum amount of each loan is determined by TAC’s Financial Aid Office based on the students expected costs and other financial aid amounts.

Rates

Federal PLUS Loans disbursed on or after July 1, 2014 have a fixed interest rate of 7.21% for parents.

Federal PLUS Loans disbursed before July 1, 2014 have a fixed interest rate of 6.41%

Fees

All Federal PLUS Loans may be subject to an origination and insurance fee of up to 4%, taken from the value of the loan at the time it is disbursed to the school. The loan amounts listed above and on financial aid award notifications represent the gross amount (amount before the fees have been paid). Borrowers should consider the fees charged by each lender when choosing their loan provider.

Repayment

Standard loan repayment begins 60 days after the loan has been fully disbursed for the academic year. Interest will begin to accrue at the time of the first loan disbursement. Repayment will initially be scheduled for fixed monthly payments over a 10-year period.

Parents now have the choice of making payments while the student is in school or deferring payments until the student graduates. If you choose to pay after graduation, interest will accrue from the time of full disbursement. You can choose to pay the interest monthly, or you can defer both interest and principle until the student graduates. If you choose not to pay the interest monthly, it is capitalized no more than four times per year.

How to Apply for a Federal PLUS Loan

Parents of undergraduate students should complete the following steps to apply for a Federal PLUS Loan:

  1. Complete the Free Application for Federal Student Aid (FAFSA) or sign an educational purpose statement for the school’s financial aid office. The school must have a completed FAFSA before funds for a Parent Plus Loan can be disbursed.
  2. Apply for a Parent Plus Loan by clicking here.

Borrowers accepting a Federal PLUS Loan for the first time at Tennessee Academy of Cosmetology or borrowers who would like to choose a new lender should also:

  1. Select a lender
  2. Complete a Master Promissory Note

PLEASE NOTE: A Master Promissory Note can be completed and printed by going to Federal Family Education Loan Program Master Promissory Note.

If you do not want to complete the MPN electronically, you may complete it using the paper process by going to www.studentloans.gov. If using this method, please return the completed form to the financial aid officer. We will electronically process the loan with the lender you have selected. You may also apply electronically from many lender websites.

Alternative Student Loans

When applying for financial aid you need to be aware of the various types of loans available to you and the terms and conditions of such a loan. You may be eligible for a private education loan through your local bank; however you may also qualify for Title IV grants and loans, and that the terms and conditions of Title IV loans may be more favorable than the terms and conditions of private education loans. Be aware of the terms and conditions of any loans that you take out and make a choice that best suits your needs and ability to pay back the money borrowed.

Entrance Counseling

Entrance Counseling Session Instructions

Before your school disburses your Federal Stafford Loan (subsidized or unsubsidized), regulations require that you complete an entrance counseling session. The counseling session provides information about how to manage your student loans, both during and after college. This part of the process can be done online at https://studentloans.gov/myDirectLoan/index.action.

If you need assistance please contact the school financial aid officer.

Before You Start

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  • You must use Internet Explorer 5.5 or higher, Netscape Navigator 4.7 or higher, or Mozilla Firefox 1.0. Get a browser now
  • You can use any Internet service provider (ISP) to connect to the Internet; however, you should access this counseling session using one of the browsers above after you’ve connected. Do NOT use the ISP’s browser, such as AOL or MSN–you won’t be able to complete the student form at the end of the session!
  • You must enable JavaScript in your browser.

PARENTS: Please don’t complete the counseling session on behalf of your son or daughter, as this federal requirement helps the student understand the rights and responsibilities of borrowing a student loan.

You will need about 25 minutes to complete this counseling session.

You will need the following information:

  • Your Social Security number
  • Your driver’s license number

NOTE: The student loan calculator in this session will help you calculate your estimated monthly payment. If you aren’t sure how much you’ll borrow, you can ask your school for the average student loan indebtedness of borrowers at the school or in your program of study at the school.

What to Do

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