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. 
Students wanting to change loan amounts after accepting them must complete the Loan Adjustment Request Form located at http://www.utc.edu/financial-aid/forms/.


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.

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 for all loans disbursed on or after July 1, 2013 through June 30, 2014 is a fixed rate of 3.86% for undergraduate Direct Subsidized loans and a fixed rate of 3.86% for all undergraduate Direct Unsubsidized loans. Graduate level interest rate is 5.41%.


Stafford Loan limits for the academic year

Dependent Students (Except Students Whose Parents Cannot Borrow Direct PLUS)

  • Freshman
    • Base Amount: $3,500
    • Additional Unsubsidized Loan Amount: $2,000
  • Sophomore
    • Base Amount: $4,500
    • Additional Unsubsidized Loan Amount: $2,000
  • Junior or Senior
    • Base Amount: $5,500
    • Additional Unsubsidized Loan Amount: $2,000

Independent Undergraduate Students and Dependent Students Whose Parents Have a Direct Parents PLUS Loan Denial

  • Freshman
    • Base Amount: $3,500
    • Additional Unsubsidized Loan Amount: $6,000
  • Sophomore
    • Base Amount: $4,500
    • Additional Unsubsidized Loan Amount: $6,000
  • Junior or Senior
    • Base Amount: $5,500
    • Additional Unsubsidized Loan Amount: $7,000

Graduates and Professional Students

  • Base Amount: $8,500 
  • Additional Unsubsidized Loan Amount: $12,000

Aggregate loan limits:

  • $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)