Federal Parent and Graduate PLUS Loans
Federal PLUS loans enable the parents of dependent undergraduate students, and independent graduate students, with good credit histories to borrow up to the student’s cost of attendance, less any other aid received.
Federal Parent PLUS Loans - please note the following:
- Dependent undergraduate students are not required to complete the FAFSA for their parent to apply for a Parent PLUS loan, but it is strongly recommended.
- Only biological, adoptive, or step-parents may apply for the Parent PLUS Loan. Grandparents, guardians, foster parents, or other relatives are not eligible to apply.
- The UTC-specific PLUS Information Form is required with or without submission of the FAFSA. Parents must be Pre-Approved for a PLUS Loan and complete a Master Promissory Note (MPN) with the appropriate lender BEFORE submitting this form.
- Allow 3 business days after submitting the MPN to your lender for them to notify UTC of your approval. The student's MocsNet account will be updated to indicate that the approval has been received.
- The student must be making Satisfactory Academic Progress and must be enrolled in a minimum of 6 credit hours to receive Federal Parent PLUS funds.
- The Parent PLUS Loan award amount CANNOT exceed the student's cost of attendance.
Federal Graduate PLUS Loans - please note the following:
- The student must be fully admitted to the Graduate School at UTC.
- Undergraduate students taking graduate level classes are not eligible.
- The student must complete the FAFSA and all other financial aid requirements. Please refer to our 5 Steps to Financial Aid at UTC for more information.
- The student must accept the maximum eligibility of $20,500 under the Federal Stafford Loan Program for the CURRENT aid year. Typically, in-state graduate students will not be eligible for the Graduate PLUS Loan until (possibly) summer due to UTC's low cost of attendance and, therefore, the student's inability to accept the full $20,500. The Graduate PLUS Loan award amount CANNOT exceed the student's cost of attendance.
- These loans require a borrower credit check and in some cases, a co-signor.
- These students need not submit the PLUS Information Form to UTC.
- Effective Fall 2008, all Graduate PLUS Loan borrowers must complete Graduate PLUS Entrance Loan Counseling.
- Students must adhere to all UTC enrollment and Satisfactory Academic Progress standards in order to be eligible for PLUS loan proceeds.
Students must adhere to all UTC enrollment and Satisfactory Academic Progress standards in order to be eligible for PLUS loan proceeds.
These loans, like Federal Stafford Loans, are made by a lender such as a bank, credit union, or savings and loan association. The annual loan limit is the student's cost of attendance minus any estimated financial aid. For new PLUS loans, the interest rate has a 9% cap and is recalculated each July 1. The PLUS interest rate for July 1, 2007 through June 30, 2008 is a variable rate at 8.02%.PLUS Loan interest begins at the time the first disbursement is made and repayment begins within 60 days after the loan is fully disbursed. Some lenders allow interest-only payments while the student is enrolled. Check with your lender for more information.
PLUS Loan Procedures
*PLEASE NOTE: The below procedures apply only to UTC’s electronic PLUS lenders. Other procedures will be required if the lender selected is not familiar with UTC's certification and disbursement processes. Please contact your lender if you are not sure of their process.
- The parent or independent graduate student applies for the PLUS loan by calling their selected lender or by completing the Pre-Screen Process on the lender's website.
- If pre-approved, the borrower must complete a Master Promissory Note. Electronic submission is recommended.
- The lender electronically transmits the approval or denial to the UTC Financial Aid Office within 72 hours.
- If approved, the parent borrower of dependent undergraduate students submits a PLUS Information Form to UTC. PLUS certifications will be placed on hold until this form is received by UTC. Independent graduate students do not need to submit this form.
- The approval is certified or the denial is processed by UTC. Denial processing is available only for dependent undergraduate students and may allow for additional unsubsidized Stafford loans. Please allow a minimum of 5 business days for processing of a revised award.
- Funds are released electronically by the lender within 7 days of the certification, provided the lender has received all relevant documentation from the borrower.
- Effective Fall 2008, all Graduate PLUS Loan borrowers must complete Graduate PLUS Entrance Loan Counseling.
- Any refund due will be in the form of a check printed for the parent or student, based on the previous agreement between the borrower and UTC.
