Direct Subsidized Student Loans
Low interest student loans available to degree-seeking undergraduate college students to assist with educational cost.
Interest rate: 3.4% fixed for loans disbursed between July 1, 2012 and June 30, 2013. The government pays the interest as long as the student is enrolled in a degree-seeking program and enrolled half-time (six credit hours). The interest accrues immediately once the student graduates, drops below half-time enrollment or is no longer enrolled.
Repayment begins: six months after the student graduates, drops below half-time enrollment, or is no longer enrolled. There is no penalty for pre-payment.
Direct Unsubsidized Student Loans
Low interest student loans available to degree-seeking undergraduate and graduate college students to assist with educational cost.
Interest rate: 6.8% fixed for loans disbursed between July 1, 2012 and June 30, 2013. Interest begins accruing immediately following disbursement. Students are strongly encouraged to pay their interest while enrolled so that they do not end up paying interest on top of interest.
Repayment begins: six months after the student graduates, drops below half-time enrollment, or is no longer enrolled. There is no penalty for pre-payment.
Direct Subsidized and Unsubsidized Loan Procedures: Direct Subsidized and/or Unsubsidized loans are offered up to maximum eligibility for student’s grade level as determined by the Records and Registration Office. The UTC Financial Aid Notification will be sent to the student’s UTC e-mail account. Students may then access their financial aid award in MyMocsNet. Students must accept, reduce or decline the Stafford loans through their MyMocsNet account. These awards are time-sensitive and may be cancelled after 30 days of student inactivity. Students borrowing Direct Stafford Loans for the first time at UTC must complete Entrance Loan Counseling and a Master Promissory Note (MPN) prior to receiving their first loan disbursement at UTC.
Loan Limits for the 2012-2013 academic year are:
Dependent Student Loan limits
(Except Students whose parents cannot borrow Direct PLUS)
Grade level |
Base loan* |
Additional Unsubsidized loan |
Maximum Total Loan |
Freshman (0-29 hours) |
$3,500 |
$2,000 |
$5,500 |
Sophomore (30–59 hours) |
$4,500 |
$2,000 |
$6,500 |
Junior/Senior (60+ hours) |
$5,500 |
$2,000 |
$7,500 |
Independent Student Loan Limits (or Dependent Student with PLUS loan denial)
Grade level |
Base loan* |
Additional Unsubsidized loan |
Maximum Total Loan |
Freshman (0-29 hours) |
$3,500 |
$6,000 |
$9,500 |
Sophomore (30–59 hours) |
$4,500 |
$6,000 |
$10,500 |
Junior/Senior (30–59 hours and Post Baccalaureate) |
$5,500 |
$7,000 |
$12,500 |
Graduate |
$8,500** |
$12,000 |
$20,500 |
*maximum amount that can be subsidized
**All graduate loans with loan periods beginning after June 30, 2012 are unsubsidized.
- Effective 2012-2013, Graduate and Professional Students are eligible to receive unsubsidized loans only. Amount not to exceed $20,500 per year.
Aggregate loan limits for the 2012-2013 academic year are:
- $31,000 for dependent undergraduate students (limit $23,000 in subsidized loans)
- $57,500 for independent undergraduate students (limit $23,000 in subsidized loans)
- $138,500 for graduate and professional students (including undergraduate borrowing)
