Stafford Loan Procedures
Students borrowing Federal Stafford 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 MocsNet account. These awards are time-sensitive and may be cancelled after 30 days of student inactivity.
Federal Stafford Student Loans
Students must complete the Free Application for Federal Student Aid (FAFSA) to apply for federal Stafford loans. The student will be offered Stafford 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.
Subsidized Stafford 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. Unsubsidized Stafford 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 MocsNet with their Secure ID (SID). 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 Federal Stafford Loans must complete Entrance Loan Counseling and a Master Promissory Note (MPN) prior to receiving their first loan disbursement at UTC. The MPN must be completed for the lender that the student selected on their MocsNet. Completing an MPN for a lender other than the one selected on MocsNet will significantly delay processing and disbursement of funds.
Stafford Loan repayment begins six months after the student graduates or drops below half-time enrollment. The interest rate on Stafford loans is capped at 8.25% and is re-calculated each July 1. The interest rate effective July 1, 2007 through June 30, 2007 is a variable rate at 6.62%.
Stafford Loan limits for each academic year are:
- $3,500 for freshmen
- $4,500 for sophomores
- $5,500 for juniors and seniors
- $8,500 for degree-seeking graduate students
Independent students (and dependent students whose parents are denied the ability to borrow PLUS Loans) may be eligible to borrow additional Unsubsidized Stafford Loans within the following annual limits:
- $4,000 for freshmen and sophomores
- $5,000 for juniors and seniors
- $12,000 for degree-seeking graduate and professional students
Aggregate loan limits are:
- $23,000 for dependent undergraduate students
- $46,000 for independent undergraduate students (limit $23,000 in subsidized loans)
- $138,500 for graduate and professional students (limit $65,500 in subsidized loans)
