In the Federal Direct Loan program, the US Department of Education will supply the loan funds and service the loans after disbursement. A Free Application for Federal Student Aid (FAFSA) must be completed before applying for a student loan. Federal Stafford Loans are available to eligible undergraduate, graduate, or professional students and may be subsidized or unsubsidized. Repayment of principal is postponed while the student is in school and during a six-month grace period after the student leaves school or drops below half-time hours.
Subsidized Stafford Loans — the federal government pays the interest while the student is in school for at least half time. These loans are based on need.
Unsubsidized Stafford Loans — the interest is not paid for by the government while the student is in school. The interest begins when the loan is issued and will accrue while the student is in school. To minimize the interest debt, it is advisable to pay the interest while going to school.
The 3-year cohort default rate for 2014 was published September 2017.
The national average: 11.5%
UT Martin: 9.2%
The combination of loan(s) and any other aid may not exceed the cost of attendance for the term of the loan. Students are limited to the loan amounts they can borrow in an aid year (fall/spring/summer) and through all their undergraduate and graduate years.
Borrowing limits for full time enrollment is as follows:
**The Federal Perkins Program has been discontinued, beginning Oct. 1, 2017. Perkins loans for 2017-18 must have their first disbursement occur prior to Oct. 1, 2017 to be eligible for the 2nd disbursement in Spring.
PLUS (Parent Loans for Undergraduate Students) loans enable parents to borrow the student's cost of attendance minus other aid for each dependent student who is enrolled at least half-time. This loan is in the parent's name and must be applied for by the parent at www.studentloans.gov. UT Martin requires the student to complete the FAFSA before certifying a PLUS loan. The PLUS loan cannot exceed the difference in the student's estimated cost of attendance and what they are already receiving. We will adjust the amount accordingly.
If PLUS is Denied: If a parent is denied by the Department of Education for a PLUS loan, the school will be notified and the student will become eligible for an additional unsubsidized loan at the independent student level. We will send notification of that eligibility to the student and they will need to complete an additional form to request those additional loan amounts.
Grad PLUS loans are loans that are additional loans that are available for graduate students only. They are usually only used after a student has used their maximum eligibility for Stafford loans. They are applied for at www.studentloans.gov. Credit decisions will be sent to UT Martin and we will evaluate your eligibility to receive the loan before putting it on your account. Be sure you have completed a FAFSA and have accepted all the Stafford loan that you are eligible for first.
Repayment begins after the grace period expires. The grace period for most borrowers is six months and begins when the student leaves school or falls below half-time hours.
Repayment of interest begins immediately, unless the student has chosen to have interest capitalized, which means interest will accrue on the loan until the student leaves school or falls below half-time hours. Repayment of principal and interest begins six months after the student leaves school or falls below half-time hours.
Repayment typically begins 60 days after the loan is fully disbursed. Parents must check with their lender to obtain information on repayment procedures.
Federal School Code
Our Title IV federal school code is 003531.
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