Loans

Student Loans

The Financial Aid Office will assist you in administering loans from a variety of student loan programs, including loans available from federal, state and private resources. On most loans, the student is the borrower and must complete the loan application process, which includes signing a promissory note. Parents are eligible to apply for the Parent PLUS Loan on behalf of their dependent student. Students should check their Workday account to ensure all items requested by the Financial Aid Office are received.

Federal loans are available to U.S. citizens and permanent residents of the U.S. only. Complete the FAFSA to be considered for the loans listed below. First-time student borrowers are required to complete loan entrance counseling prior to disbursement.

ECMC Solutions

We've partnered with ECMC Solutions to help you create a plan for repayment and address your questions and concerns regarding federal student loans at no cost to you. A representative from ECMC may contact you if you've borrowed federal student loans and you graduate, withdraw, drop below half-time, shortly before your loan payments begin or if you're late in making payments on your loans. You may want to call ECMC if you're having trouble making payments, to learn more about the repayment options available to make your monthly payments more affordable, or learn about loan forgiveness, forbearance and deferment options.

Contact:
(877) 331-3262
www.ecmcsolutions.org

Student Loan Debt Relief is currently on hold and has the potential to be overturned. Do you have a plan for repayment?

Pending litigation outcomes, student loan (re)payments may start as early as May 2023 or as late as August 2023; are you ready?

Direct Loans Available to undergraduates and graduates enrolled at least half time.

Award amount: see chart below
Interest: see table below for information on interest rates
Payment terms: six months after leaving school or dropping below half-time status

Available to undergraduates and graduates enrolled at least half-time. The borrower will pay a fee of 1.057 percent of the loan amount, deducted each time a loan disbursement is made. If you have remaining Direct Loan eligibility, it is possible that it can be used for the Summer Session. Processing for summer financial aid begins in April. Contact your financial aid counselor for more information regarding eligibility. Federally funded Direct Loans come in two kinds: subsidized and unsubsidized.

The subsidized Direct Loan is based on need, as determined by the FAFSA. No interest accrues while you are enrolled at least half-time and will begin accruing interest only after the six-month grace period has expired. However, loans made on or after July 1, 2012 and before June 30, 2014 will accrue interest even during the six-month grace period. Beginning July 1, 2012, subsidized Direct Loans will be available to undergraduate students only.

The unsubsidized Direct Loan is available to students regardless of need, and interest begins to accrue at disbursement. You may choose to make payments while enrolled or defer payment until you leave school.

Direct Loan Amount

Freshmen: up to $5,500 per year (plus $4,000 per year unsubsidized for independent students)
Sophomores: up to $6,500 per year (plus $4,000 per year unsubsidized for independent students)
Juniors/Seniors: up to $7,500 per year (plus $5,000 per year unsubsidized for independent students)
Graduate students: up to $20,500 per year (unsubsidized only)

HOW TO APPLY: A completed FAFSA and a loan promissory note are required for both types of Direct Loans. The U.S. Department of Education is the lender for all Direct and PLUS loans through the William D. Ford Federal Direct Loan Program. New students must accept or decline Direct Loan offer(s) in Workday, in the Financial Aid section from the Finances tab.

To disburse your federal student loan(s), the following documentation is required:

INTEREST RATES: The following fixed interest rate schedule applies for undergraduate Direct Loan borrowers for the subsidized portion of their loan only. The following interest rates apply for loans disbursed as follows:

Loan Type	Borrower Type	Loans first disbursed on or after July 1, 2021, and before July 1, 2022	Loans first disbursed on or after July 1, 2022 and before July 1, 2023
Direct Subsidized Loan	Undergraduate	3.73%	4.99%
Direct Unsubsidized Loan	Undergraduate	3.73%	4.99%
Direct Unsubsidized Loan	Graduate or Professional	5.28%	6.54%
Direct PLUS Loan	Parents and Graduate or Professional Students	6.28%	7.54%

To view the most up-to-date information on the Federal Direct Loans' interest rates and fees, please visit Federal Student Aid An Office of the U.S. Department of Education.

Direct PLUS Loans for Parents and Graduate Students This is a credit-based loan for parents of dependent undergraduate students or graduate students enrolled at least half time.

Federal Loan Repayment After you graduate, leave school or drop below half-time enrollment, you have a grace period of six months for Direct Loans (nine months on Perkins) before beginning to repay your loans.

After you graduate, leave school or drop below half-time enrollment, you have a grace period of six months for Direct Loans (nine months on Perkins) before beginning to repay your loans. Your first payment is due within 60 days after your grace period. Your lender(s) will notify you of your payment due dates.

Federal regulations require that you complete a loan exit counseling session before you graduate and every time you drop below half-time status. The counseling session provides information about how to manage your student loans.

Use the National Student Loan Data System Financial Aid Review service for information on loan and/or grant amounts, outstanding balances, loan status, lender contact information and disbursements.

Several repayment plans are available. Generally, you'll have from 10 to 25 years to repay your loan, depending on which plan you choose. Learn more about loan repayment.

You may be able to consolidate your Direct Loans, if you have at least one loan in grace, repayment, deferment or default status. In-school status loans are not included. Learn more about consolidation loans.

The parent-borrower has the option of beginning repayment either 60 days after the loan is fully disbursed or six months after the dependent student drops to below half-time enrollment. Parent-borrowers must request deferment from their lender each year they wish to delay repayment. During this time, interest may be paid or capitalized.

If, at any time, you're having difficulty making payments, please contact the Financial Aid Office. A counselor will be happy to discuss the options available to help keep you from defaulting on your student loans.

We’ve teamed up with Solutions at ECMC (Educational Credit Management Corporation) to answer all of your student loan repayment questions. Solutions is a service of the nonprofit organization ECMC and is dedicated to helping students manage educational loans. Their resources are available to you free of charge. To contact a Solutions student loan repayment adviser, submit the email form or web chat, or call (877) 331-3262.

Alternative Loans Many private banks and lenders offer loans for financing educational costs.

Many private banks and lenders offer loans for financing educational costs. However, we recommend you exhaust all federal aid options before taking an alternative loan (federal loans are generally less expensive). A FAFSA is not required for alternative loans. Students who wish to take an alternative loan and do not complete the FAFSA must complete private loan counseling with their financial aid counselor prior to receiving the alternative loan funds.

Award amount, interest and payment terms vary. These are credit-based loans and students must complete the lender's application process.

Lenders may require a co-borrower, that the student makes payments while in school or have other stipulations. Even if not required by the lender, students may choose to apply with a cosigner because it could reduce the interest rate.

See UT's alternative loan lender list for more information.

The Financial Aid Office provides this list of alternative loan lenders to assist students in identifying banks and lenders offering alternative educational loans. Students are encouraged to conduct their own research to identify the best loan options for their individual circumstances.

To determine which lenders and loan options to display, the Financial Aid Office continuously monitors lenders' updates to ensure borrower benefits and customer service adhere to our criteria. Any lenders or loan options that no longer adhere to our criteria are removed. At least three unaffiliated lenders will be presented to you at all times. Students may select any lender of their choice, including lenders not on UT's alternative loan lender list.

Alternative loans should not be confused with direct-to-consumer loans. Direct-to-consumer (DTC) loans are NOT certified by the school and usually have higher interest rates. The loan funds are sent directly to the student borrower and not to the school; as a result, these loan funds will not appear as expected financial aid on the student's tuition bill. Although the maximum loan amount for a DTC loan should be cost of attendance minus other aid, without the school certification process there is no way for the school to ensure the cost of attendance is not exceeded. Other aid, including scholarship and grant funds, could be reduced, or returned entirely because the cost of attendance was exceeded with a DTC loan.

For most students, the traditional grant and loan programs are the best sources for financial aid, and direct-to-consumer loans should be avoided. Discuss your options with your financial aid counselor for assistance in making this determination.

Financial Aid Office Code of Conduct The University of Tampa’s Financial Aid Office has developed the following code of conduct in compliance with Title IV regulations.