2006-2007 Academic Year

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 Subsidizd Stafford Loans 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 both 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, or enrolled less than 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. 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 Unsubsidized Stafford Loans follow the same basic rules as Federal Subsidized Stafford Loans, with these few exceptions:

1. the student borrower is responsible for all interest accumulated on the loan from the time of disbursement until it is paid in full.
2. 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.
3. dependent students are not eligible for the additional funding provided by Unsubsidized Stafford Loans. (Dependent students may qualify 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 parent-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. An origination fee of 3% is withheld from PLUS checks by the lender. The PLUS Loan is awarded to dependent students on their initial award letter. Application instructions are available from the Financia Aid office, or by selecting the link below.

Instructions for LOANS BY WEB