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The first step in applying for student loans is to complete the FAFSA. After the University of Tennessee reviews your FAFSA results, we will determine your eligibility for federal student loans.
*Please note: A student must be admitted as "degree-seeking" to qualify for a student loan.*
Click here to view recommended lender benefits or to sign a Master Promissory Note (MPN).
Types of Loans
Federal Stafford Loan
The following details the maximum annual amounts, if eligible, you can borrow at each grade level:
Dependent Undergraduates:
$3,500/ year for Freshmen
$4,500/ year for Sophomores
$5,500/ year for Juniors/Seniors
Independent undergraduates can borrow an additional $4,000 at the freshman/sophomore level and $5,000 at the junior/senior level.
Graduate students:
$20,500/ year
A dependent undergraduate may borrow up to $23,000 and an independent undergraduate can borrow up to $46,000. Graduate or professional students may accrue up to $138,500 ($65,500 subsidized and $73,000 unsubsidized), which includes undergraduate loans. Repayment of the Federal Stafford Loan can be deferred up to 6 months upon graduation, leaving the university or dropping below half-time attendance. This loan is repaid through the lender chosen by the student. All Stafford Loans have a variable interest rate with a cap of 8.25%.
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There are two types of Stafford Loans:
Subsidized is a need based loan program in which the government pays the interest that accrues during the student's period of enrollment.
Unsubsidized is a non-need based loan program in which the interest accrues while the student is attending. The student has the option of paying the interest while in school on a monthly or quarterly basis or deferring the interest until repayment begins. This accrued interest will be capitalized.
Federal Perkins Loan
Administered by the University of Tennessee, Perkins Loans are awarded to students with exceptional need with priority given to Federal Pell Grant recipients. Listed below are the maximum annual amounts:
$4,000/ year for undergraduates
$6,000/ year for graduates
The aggregate limit for an undergraduate is currently $20,000 and $40,000 for graduate/professional students. Repayment is deferred for up to 9 months upon graduation, leaving the university or dropping below half-time attendance. The Perkins Loan interest rate is fixed at 5% and repayment is coordinated by the UT Bursar's Office.
Parent Loan for Undergraduate Students (PLUS)
PLUS loans enable parents with good credit histories to borrow to pay the educational expenses of a dependent undergraduate student enrolled at least half-time (6 hours). The interest rate is variable, but it will never exceed 9%. Repayment generally begins 60 days after the final disbursement for the academic year. Parents interested in applying for a PLUS Loan should contact a lender to initiate processing.
If a parent is denied for a PLUS loan, the dependent student may be eligible for additional unsubsidized Stafford loan funds for that academic year.
Alternative Loans
Alternative student loans are made through private lending institutions and are not part of federal loan programs. We encourage you to first look into federal loan programs before applying for a private loan. If you are ineligible for federal government loans or have already exhausted government sources, private loans can help offset the difference between educational expenses and federal loans. There are many private loan options and it is to your benefit to research and find the loan that best meets your specific needs. Please remember that final approval for your loan resides with your lender and not the University of Tennessee.
*Please note that all awards are subject to individual student eligibility and fund availability.
Borrowing should be done conservatively to avoid heavy loan debt and the potential for default.
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