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, 2009 through June 30, 2010 is a fixed rate of 5.6% for undergraduate subsidized Stafford loans and a fixed rate of 6.8% for all unsubsidized and graduate level Stafford loans.
Stafford Loan limits effective for the 2009-10 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 effective for the 2009-10 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)
