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2006-2007 Academic Year
FEDERAL STAFFORD LOAN COUNSELING
REQUIREMENTS
ENTRANCE LOAN COUNSELING is required each calendar year
for Federal Stafford Loan borrowers, and is offered through the
Loans- By- Web process.
EXIT LOAN COUNSELING is required of all student borrowers at
the time the student ceases to be enrolled at UT Tyler for at least 6
credit hours. Loan Counseling is available electronically through Loans-By-Web.
FEDERAL STUDENT LOAN PROGRAMS
Federal Family Education Loan Program
The Federal Family Education Loan Program contains three types
of student loans: Stafford Loans, Unsubsidized Stafford Loans, and
Parent Loans for Undergraduate Students (PLUS). These loans are
considered self-help assistance and must be repaid by either the
student or parent borrower.
Federal Stafford Loans (Subsidized) are awarded based on financial
need, as determined by the Financial Aid Office.They are available
to both graduate and undergraduate students and require a minimum
of 6 credit hours per semester at UT Tyler. The interest rate
(capped at 8.25%) is variable and changes annually on July 1.
The government pays interest that accrues on Federal Stafford
Loans while the student borrower is in school on a half-time basis.
Repayment begins 6 months after the borrower ceases half-time
enrollment. Once repayment begins, the student pays the interest
and principle. Entrance Loan Counseling is required each calendar
year, and is a part of the Loans-By-Web process. Exit Loan
Counseling is required when a student borrower ceases to be
enrolled at least half-time. Federal Stafford Loan annual maximum
amounts range from $2625 for freshmen, $3500 for sophomores,
$5500 for juniors and seniors. The annual maximum for graduate
students who have been accepted into a graduate program is
$8500. Non-degree-seeking students are not eligible for funding.
These loans are paid in two equal installments, less the 3% origination
fee retained by the lender, if applicable. The student borrower
selects a lender who participates in the FFEL Program. Students
must remain eligible to receive student loan funding at the time the
funds are released.
Federal Stafford Loans (Unsubsidized) follow the same basic
rules as Federal Subsidized Stafford Loans, with these few exceptions:
- the student borrower is responsible for all interest accumulated
on the loan from the time of disbursement until it is paid in
full,
- the annual maximum amounts for Unsubsidized Loans are
$4000 for freshmen and sophomores, $5000 for juniors and seniors
and $10,000 for graduate students who have been accepted, and
- dependent students are not eligible for the additional funding provided
by Unsubsidized Stafford Loans. (Dependent students mayqualify for Unsubsidized Stafford Loans only if their Subsidized
Stafford Loan eligibility is less than the annual maximum OR their
parents are denied PLUS funding.)
Federal Parent Loans for Undergraduate Students (PLUS) are
available to the parents of dependent, undergraduate students. It
requires that the borrower be creditworthy and that the student be
enrolled in at least 6 credit hours at UT Tyler. UT Tyler requires a
completed financial aid file for the current academic year to process
an application for a PLUS. The interest rate for PLUS is variable,
but capped at 9%. Repayment of PLUS begins 60 days after the
second disbursement of the PLUS. An origination fee of 3% is
withheld from PLUS disbursements by some lenders.
STAFFORD INSTRUCTIONS
Complete only AFTER you have received an award letter.
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If you plan to attend ONLY Fall or ONLY Spring, please contact
our office before starting the Loans By Web process.
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Complete Entrance Loan Counseling, then submit your information,
and click “FINISH.” On the Confirmation Page, click on “RETURN
TO LBW.”
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Follow all four steps to “Complete your Loan Award.”
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After submitting the application, Loans By Web will prompt you
to E-sign or to print a promissory note if you are a first-time
borrower, or if you are changing lenders.
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If using a promissory note, sign and date, and mail all pages of
the application/promissory note TO YOUR LENDER. The lender’s
address is provided on the over sheet. Make a copy for your
records.
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If you have any questions about this process, call the Texas
Guaranteed Student Loan corporation (TG) Customer Assistance
Department at 1-800-845-6257.
PLUS LOAN INSTRUCTIONS
PLUS loans are loans your parents can apply for to pay for your
educational expenses if you are a dependent undergraduate
student enrolled at least half time (6 credit hours).
Students must first complete the FAFSA for the current academic
year before applying for a PLUS loan.
To apply for a PLUS Loan, parent borrowers will go to
http://www.uttyler.edu/financialaid and click on the Loans by Web
icon and follow directions. They will then click on “I am a parent
borrower,” supply their information and follow directions to choose
a lender. After the application process and pre-approval screening,
UT Tyler will be notified by the lender.
The loan funds will be sent to us electronically (EFT) and put into
your student account. If there are any tuition and fee charges
outstanding, they will be paid. Remaining loan funds will then be
mailed to you at the address on file with the Registrar’s Office.
Instructions for LOANS BY WEB
TEXAS STATE STUDENT LOAN PROGRAMS
TEXAS B-ON-TIME STUDENT LOAN PROGRAM
The Texas B-On-Time Student Loan Program provides limited funding for no-interest loans to undergraduate students. If a student meets specified goals, the entire loan amount can be forgiven upon graduation. To qualify students MUST be a Texas resident, graduate from a Texas public or accredited private high school not earlier than the 2002-03 academic year under the recommended or distinguished program, have financial need and enroll full time (12 credit hours per semester)in undergraduate courses. For the 2006-07 academic year, priority for the B-On-Time Program will be given to those students who are eligible for TEXAS Grants but could not be funded due to funding shortages. The loan amount for 2005-06 was $2090 per semester.
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