Direct Loan Procedures
Students borrowing Direct Loans must complete Entrance Loan Counseling and a Master Promissory Note prior to receiving their first loan disbursement at UTC. Students must accept, reduce or decline their Stafford loans through their MyMocsNet account. These awards are time-sensitive and may be cancelled after 30 days of student inactivity.
Direct Subsidized and Unsubsidized Loans
Students must complete the Free Application for Federal Student Aid (FAFSA) to apply for Direct Unsubsidized and Subsidized loans. The student will be offered Direct Subsidized and/or Unsubsidized loans up to their maximum eligibility for their grade level as determined by the Records and Registration Office. Subsidized loans will always be offered first, based on eligibility as determined by the FAFSA. Unsubsidized loans will be offered once all subsidized eligibility is expended each academic year.
Direct Subsidized loans have the interest paid by the federal government as long as the student is enrolled at least half-time in a degree-seeking program, plus the 6-month grace period. Direct Unsubsidized loans begin accruing interest immediately following disbursement.
The UTC Financial Aid Notification will be sent to the student’s UTC e-mail account. The student may then access their financial aid award on MyMocsNet. Students must accept, reduce or decline their Stafford loans through their MocsNet account. These awards are time-sensitive and may be cancelled after 30 days of student inactivity.
Students borrowing Direct Stafford Loans must complete Entrance Loan Counseling and a Master Promissory Note (MPN) prior to receiving their first loan disbursement at UTC.
Stafford Loan repayment begins six months after the student graduates or drops below half-time enrollment. The interest rate on Direct Subsidized and Unsubsidized loans is re-calculated each July 1. The interest rate effective July 1, 2011 through June 30, 2012 is a fixed rate of 3.4% for undergraduate Direct Subsidized loans and a fixed rate of 6.8% for all Direct Unsubsidized loans. Graduate level interest rate is 6.8%.
Stafford Loan limits for the 2011-2012 academic year are:
|
Base amount |
Additional unsubsidized loan amount |
|
Freshman |
$3,500 |
$2,000 |
|
Sophomore |
$4,500 |
$2,000 |
|
Junior or senior |
$5,500 |
$2,000 |
|
|
Base amount |
Additional unsubsidized loan amount |
|
Freshman |
$3,500 |
$6,000 |
|
Sophomore |
$4,500 |
$6,000 |
|
Junior or senior |
$5,500 |
$7,000 |
|
|
Base amount |
Additional unsubsidized loan amount |
|
$8,500 |
$12,000 |
||
Aggregate loan limits for the 2011-2012 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 (limit $65,500 in subsidized loans)
