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Direct Subsidized Student Loans

Low interest student loans available to degree-seeking undergraduate college students to assist with educational cost. 

Interest rate: 4.66% fixed for all loans disbursed on or after July 1, 2014 and before July 1, 2015 
You may view interest rates on all loans disbursed before July 1, 2014 at
www.studentaid.ed.gov/types/loans/interest-rates.

The government pays the interest as long as the student is enrolled in a degree-seeking program and enrolled half-time (six credit hours).  The interest accrues immediately once the student graduates, drops below half-time enrollment or is no longer enrolled.

Repayment begins: six months after the student graduates, drops below half-time enrollment, or is no longer enrolled. There is no penalty for pre-payment.


Direct Unsubsidized Student Loans

Low interest student loans available to degree-seeking undergraduate and graduate college students to assist with educational cost.

Interest rate for all undergraduate unsubsidized loans:  4.66% fixed for all loans disbursed on or after July 1, 2014 and before July 1, 2015 
Interest rate for all graduate unsubsidized loans: 6.21% for all loans disbursed on or after July 1, 2014 and before July 1, 2015
You may view interest rates on all loans disbursed before July 1, 2014 at
www.studentaid.ed.gov/types/loans/interest-rates.

Interest begins accruing immediately following disbursement (while the student is in school).  Students are strongly encouraged to pay their interest while enrolled so that they do not end up paying interest on top of interest.

Repayment begins: six months after the student graduates, drops below half-time enrollment, or is no longer enrolled. There is no penalty for pre-payment.


Direct Subsidized and Unsubsidized Loan Procedures

Direct Subsidized and/or Unsubsidized loans are offered up to maximum eligibility for student’s grade level as determined by the Records and Registration Office. The UTC Financial Aid Notification will be sent to the student’s UTC e-mail account.   Students may then access their financial aid award in MyMocsNetStudents must accept, reduce or decline the loans through their MyMocsNet account.  Students borrowing Direct Loans for the first time at UTC must complete Entrance Loan Counseling and a Master Promissory Note (MPN) prior to receiving their first loan disbursement at UTC.

The Direct Subsidized and Unsubsidized Loans have origination fees (loan fees) that are deducted proportionately from each loan disbursement the student receives.  This means the money you receive will be less than the amount you actually borrow.  The student is responsible for repaying the entire amount borrowed and not just the amount received.  Graduate students are not eligible to receive Direct Subidized Loans.

Loan Limits for the academic year are:
Dependent Students (Except Students Whose Parents Cannot Borrow Direct PLUS)

  • Freshman (0 - 29 hours)

    • Base Loan*: $3,500
    • Additional Unsubsidized Loan: $2,000
    • Maximum Total Loan: $5,500

  • Sophomore (30 - 59 hours)

    • Base Loan*: $4,500
    • Additional Unsubsidized Loan: $2,000
    • Maximum Total Loan: $6,500

  • Junior or Senior (60+ hours)

    • Base Loan*: $5,500
    • Additional Unsubsidized Loan: $2,000
    • Maximum Total Loan: $7,500

Independent Student Loan Limits (or Dependent Student with PLUS loan denial)

  • Freshman (0 - 29 hours)

    • Base Loan*: $3,500
    • Additional Unsubsidized Loan: $6,000
    • Maximum Total Loan: $9,500

  • Sophomore (30 - 59 hours)

    • Base Loan*: $4,500
    • Additional Unsubsidized Loan: $6,000
    • Maximum Total Loan: $10,500
  • Junior or Senior (60+ hours)

    • Base Loan*: $5,500
    • Additional Unsubsidized Loan: $7,000
    • Maximum Total Loan: $12,500

      *maximum amount that can be subsidized


Aggregate loan limits for the academic year

  • $31,000 for dependent undergraduate students (limit $23,000 in subsidized loans)

  • $57,500 for independent undergraduate students (limit $23,000 in subsidized loans)

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