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Student Financial Planning

Student Financial Planning

Student Financial Planning > Undergraduate Students > Loans

Undergraduate Student Loans

Educational Loans Overview

Many students find they must supplement the resources they have to meet the expenses associated with a quality college education through taking advantage of low interest educational loans. These loans differ from a personal loan or home equity loan in that the funds are to be used exclusively for college expenses. Students may borrow in funds under the Federal Direct Stafford Loan Program, even if they have not established a credit record. Repayment on the Federal Stafford Loan is deferred as long as the student is enrolled in college at least half-time. If additional funds are needed, Alternative Educational loans are available from certain lenders.

Any questions you have regarding Undergraduate Educational Loans may be directed to Mrs. Beth Jenkins, Financial Aid Advisor, Office of Student Financial Planning at (731)-661-6574 or bjenkins@uu.edu.


To apply for any of the following, all students follow the appropriate steps in How to Apply for Financial Assistance. Filing the FAFSA is also required for the Federal Direct Stafford Loan.

The Federal Direct Stafford Loan

The Federal Direct Stafford Loan enables students who are enrolled at least half-time and degree seeking to borrow low interest loans. Payment on these loans begins six months after graduation or after a student is no longer enrolled at least half-time.

There are two types of Stafford Loans:

Stafford Undergraduate Annual Loan Limits:

 
Program of Study of at Least a Full Academic Year in Length
Total Eligibility*
     

Dependent Students

     
1st Year Undergraduates
     
Base eligibility (subsidized and unsubsidized)
$3,500
   
$5,500
Additional Unsubsidized eligibility
$2,000
     
2nd Year Undergraduates
     
Base eligibility (subsidized and unsubsidized)
$4,500
   
$6,500
Additional unsubsidized eligibility
$2,000
 
     
3rd, 4th, & 5th Year Undergraduates
     
Base eligibility (subsidized and unsubsidized)
$5,500
   
$7,500
Additional unsubsidized eligibility
$2,000
 
 

Independent Students & Dependent Students Whose Parents Cannot Borrow a PLUS Loan

     
1st Year Undergraduates
     
Base eligibility (subsidized and unsubsidized)
$3,500
   
$9,500
Additional unsubsidized eligibility
$6,000
 
     
2nd Year Undergraduates
     
Base eligibility (subsidized and unsubsidized)
$4,500
   
$10,500
Additional unsubsidized eligibility
$6,000
 
     
3rd, 4th, & 5th Year Undergraduates
     
Base eligibility (subsidized and unsubsidized)
$5,500
   
$12,500
Additional unsubsidized eligibility
$7,000
 
     
* The subsidized portion of this amount cannot exceed the base eligibility.

 

The total debt you can have outstanding from all Stafford loans combined is:

Students must file the Free Application for Federal Student Aid (FAFSA) each academic year to be eligible to apply for the Stafford Loan.

In 2013, the interest rates on Stafford loans (subsidized and unsubsidized) are 3.86%. An origination fee, up to 1.051%, will be deducted by the Department of Education prior to disbursement of the Stafford loan.

A Federal Direct Stafford Loan Master Promissory Note (MPN) and entrance counseling must be completed the first time you apply for a loan at Union. The MPN is valid for up to 10 years. You are able to E-Sign this MPN at www.studentloans.gov and complete entrance counseling at www.studentloans.gov.

Loan funds are normally disbursed in equal installments. If the student has met all federal requirements, loan funds are credited to their account within 3 days after the funds are received. If a student is due a credit refund, it will be direct deposited to the bank account the student set up via Portal. See our Schedule of Loan Refund Dates.

The Federal Direct Parent Loan for Undergraduate Students (PLUS)

The Federal Direct PLUS Loan is a federal education loan that enables credit-worthy parents to borrow low-interest loans for their dependent student. The Parent may borrow up to the student's Cost of Attendance (COA) at Union minus any financial aid the student may receive during the loan period(s).

The student must be enrolled at least half-time and must also be degree seeking in order for the parent to be eligible to apply for the PLUS Loan.

First-time Direct PLUS borrowers at Union must E-Sign the Direct PLUS Master Promissory Note at www.studentloans.gov. For each loan requested, you must complete a Direct PLUS application at www.studentloans.gov.

The Federal Direct PLUS Loan interest rate is fixed at 6.41%. Interest begins to accumulate when the first disbursement is made. Loan funds for the academic year will be disbursed in two equal installments, one for the fall and one for the spring. An origination fee, up to 4.204%, will be deducted by the Department of Education prior to disbursement of the PLUS loan. Generally, repayment of Federal Direct PLUS Loans begins 60 days after the final disbursement for the school year in which it was awarded. However, more flexible repayment options are available by contacting the Direct Loan Servicing Center at 1-800-848-0979 or www.studentloans.gov.

If a parent is denied a Federal Direct PLUS Loan, students may be able to borrow additional Stafford Unsubsidized Loan Funds in the following maximum annual amounts:

Freshmen & Sophomore $4,000 Annual Maximum
Junior & Senior $5,000 Annual Maximum

The Free Application for Student Aid (FAFSA) must be completed each year in order for a Parent to apply for The PLUS Loan.

Loan funds are normally disbursed in equal installments. If the student has met all federal requirements, loan funds are credited to their account within 3 days after the funds are received. If a student is due a credit refund, it will be direct deposited to the bank account the student set up via Web Advisor. See our Schedule of Loan Refund Dates.

Alternative Loans

This is a non-federal educational loan available through private lenders. The loan is borrowed by the student but generally requires a co-signer. The interest rate is variable and is set by the individual lender. Information regarding lenders that offer alternative loans is available at Union's Alternative Lender List.

Loan FAQs

  1. What is a Master Promissory Note?

    The Master Promissory Note (MPN) is a Serial Note for the Federal Direct Stafford Loan or Federal Direct PLUS Loan, valid for up to 10 years. Once a student has signed an original Master Promissory Note, a new MPN will not be required for subsequent years that the student is enrolled at Union.

  2. If my parent needs to apply for a PLUS Loan, how do I know how much he should borrow?

    Using the Tuition and Fees Schedule, calculate the student's total cost for the academic year, minus any scholarships, grants and Stafford Loan funds included on the student's award letter. The remaining amount should reflect a close estimate of the student's remaining cost, not including books or other related expenses. A PLUS loan may cover the remaining cost including books and other related educational expenses up to the cost of attendance budget set by the university.

  3. What if my parent is denied a PLUS Loan?

    By federal law, a student may be awarded an additional Unsubsidized Loan ($4000 for a freshman or sophomore and $5000 for a junior or senior) if the parent is denied a PLUS. Union will automatically award the additional loan, should we receive notice of a PLUS denial.

  4. How will I be notified I have an approved loan?

    Students will be notified in an Award Letter of the proposed loan amount(s) each academic year. If the student wants to decline or lower the amount, they should indicate such changes on the Award Letter, sign it, and return it to the Office of Student Financial Planning.

    Loan amounts are subject to change if the Financial Aid Package is adjusted. Federal Regulations do not allow a student to be over-awarded (receive more aid than the FAFSA shows student is eligible for).

  5. When will the loan funds be credited to my student account?

    The loan period for the traditional undergraduate programs is usually Fall through Spring. Notifications of the anticipated disbursement dates will be sent from the Office of Student Financial Planning.

    The Office of Student Financial Planning will notify you by email when your funds are credited to your student account. Federal regulations require that funds be credited to the student within 3 days after funds are received.

  6. What is Entrance Counseling?

    In order to ensure that every Federal Direct Stafford Loan borrower understands completely the Direct Stafford Loan Program, the federal government requires first time borrowers at Union to complete entrance counseling before funds can be credited to the student's account. After completion of online entrance counseling, the Office of Student Financial Planning will be notified by email, and your funds will be disbursed.

  7. If I have an overage (credit balance) on my account when the loan funds come in, how and when can I get that money?

    Students whose financial aid is greater than their Union charges will receive the credit balance amount via direct deposit to their personal bank account. The Scheduled Credit Refund Dates are determined according to when financial aid funds are received by Union. Your banking information must be entered by logging into your Union University Portal account.

  8. When do Federal Loans have to be paid back?

    Repayment of a Federal Direct Stafford Loan begins six (6) months after the student graduates or ceases to be at least a half-time student. Generally, repayment of Federal Direct PLUS loans begins 60 days after the final disbursement for the school year. However, more flexible repayment options are available by contacting the Direct Loan Servicing Center at 1-800-848-0979 or www.studentloans.gov.

  9. Can my loans be forgiven or canceled?
  10. General Loan Forgiveness Information
    Federal Stafford Loan Teacher Forgiveness Program
    American Federation of Teachers

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