Loans, Disbursement, and Repayment

Direct Subsidized Loans

Interest is Loan repayment begins once the grace period ends. For most borrowers, the grace period is six months and starts when the student graduates, leaves school, or enrolls in fewer than half-time credit hours.

Direct Unsubsidized Loans

Students are generally responsible for paying interest while enrolled. However, if interest is capitalized, it will accrue and be added to the loan balance until the student leaves school or drops below half-time enrollment. Repayment of the loan principal and any accrued interest begins six months after the student is no longer enrolled at least half-time.

Direct PLUS loans

Loan repayment typically begins 60 days after full disbursement. Parents and Grad PLUS borrowers may choose to postpone repayment until six months after the student ceases enrollment at least half-time. Contact your lender for details regarding available repayment options.

• Federal regulations require the University of Tennessee at Martin to disburse Stafford and PLUS Loan funds in two installments. The typical disbursements are split evenly between Fall/Spring semesters. First-time freshmen must wait 30 days after the start of classes to receive their initial disbursement. All other students typically receive their first disbursement on or around the first day of the loan period. The second disbursement is made on or around the first day of the loan period for the second semester.
• First disbursements are scheduled for the 15th day of the fall semester. The second disbursements are scheduled for the 15th day of spring semester for fall/spring loans.
• First-time loan borrowers must sign a Master Promissory Note (MPN) and complete Loan Entrance Counseling at www.studentaid.gov
• Summer loans are disbursed in two disbursements. The disbursement dates are the start of Maymester and around the third week of June. You must be attending or have been attending 6 credit hours at the time of disbursement for the loan to disburse as scheduled. If your 6th credit hour is in a session that begins after the disbursement dates, your loan will fully disburse at the beginning of the session in which your 6th credit hour occurs. For clarification on when your summer loan will disburse, please contact the financial aid office.

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 Stafford loan. Federal Stafford Loans are available to eligible undergraduate, graduate, or professional students and may be subsidized and/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.

NOTE: You must be attending at least six hours to be eligible for Stafford Loans

• Subsidized Stafford Loans— a need-based student loan offered by the U.S. Department of Education to eligible undergraduate students. The federal government pays the interest on the loan during certain periods, helping reduce the overall cost of borrowing.
• 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.

Loan Limits

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:

Dependent Undergraduates

• Freshmen: $3,500 subsidized/$2,000 unsubsidized ($5,500 total)
• Sophomores: $4,500 subsidized/$2,000 unsubsidized ($6,500 total)
• Juniors & Seniors: $5,500 subsidized/$2,000 unsubsidized ($7,500 total)
• Lifetime or Aggregate limit: $31,000 (maximum subsidized is $23,000)

Independent Undergraduates

• Freshmen: $3,500 subsidized/$6,000 unsubsidized ($9,500 total)
• Sophomores: $4,500 subsidized/$6,000 unsubsidized ($10,500 total)
• Juniors & Seniors: $5,500 subsidized/$7,000 unsubsidized ($12,500 total)
• Lifetime or Aggregate limit: $57,500 (maximum subsidized is $23,000)

Graduate Students

• $20,500 unsubsidized
• Lifetime or Aggregate limit: $138,000 (maximum subsidized is $65,000) and includes the debt incurred as undergraduate.

Parent PLUS 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. 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 Parent PLUS is Denied: If a parent is denied by the Department of Education for a Parent 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.

Apply for a Parent PLUS Loan

Graduate PLUS Loans are federal loans available exclusively to graduate and professional students. These loans are typically used after a student has exhausted their annual eligibility for Direct Stafford Loans. Once a credit decision is made, the information is sent to UT Martin, where your eligibility for the loan will be reviewed before the funds are added to your financial aid package. To be considered for a Graduate PLUS Loan, you must first complete the FAFSA and accept all Direct Stafford Loan funds for which you are eligible.

Apply for a Grad PLUS Loan

Private or Alternative loans are student loans that are held by a lender other than the Department of Education. These loans can be used for students who are not eligible for Federal Direct Stafford Loans or for students who may be attending less than half-time. University of Tennessee at Martin does not have a preferred lenders list. We partner with ELMSelect to provide students with information on a variety of lenders in an easy-to-understand format, to help you determine which private student loan best meets your needs.

Apply for a Private Loan