Loans
Student Loans
Depending on your financial aid analysis, you may be eligible to receive a Perkins Loan, Direct Subsidized Loan, Direct Unsubsidized Loan and/or GradPlus Loans, and/or a scholarship. Each loan is described below.
Federal Perkins Student Loan Program - Perkins Loan funds are available to students who have demonstrated financial need as reflected on the FAFSA . These loans are awarded on a first-come basis and are awarded automatically. No separate application is required for these loans; only the FAFSA needs to be submitted. The maximum amount of the Perkins Loan is $3,000 per academic year. The current interest rate is 5% with the interest not accruing until the loan goes into repayment (nine months after graduation).
Subsidized Stafford Loan -The Direct Subsidized Loans are available to students who have completed the FAFSA and have demonstrated financial need that is not being met by other means. The maximum amount of the Direct Subsidized Loan is $8,500. The interest rate on these loans is a fixed rate of 6.8%. The interest does not start accruing until the loan goes into repayment (six months after graduation). Since these loans are "need-based" you will not be able to borrow over your financial need figure if it is less than $8,500.
Direct Unsubsidized Loan - The Direct Unsubsidized Loans are available to students (with or without demonstrated financial need) who have completed the FAFSA. While these loans are not need based, they are budget based, and you will not be eligible to borrow more than your budget. The interest rate for the Direct Unsubsidized Loan is a fixed rate of 6.8%. These loans begin accruing interest immediately. The interest on these loans may be paid while enrolled in school or may be added to the loan principal when it goes into repayment (six months after graduation). The maximum amount eligible students may borrow through the Direct Subsidized and Direct Unsubsidized Loan program is $20,500.
GradPlus Loan - The GradPlus Loans are available to students (with or without demonstrated financial need) who have completed the FAFSA. These loans are designed to assist a student reach their budget if they haven't done so with Scholarships, Perkins Loans and/or Stafford Loans. They carry a credit base and will need to be applied for directly through the Department of Education. The Federal GradPlus loans have a fixed interest rate of 8.5%.
LOAN BORROWER’S RIGHTS AND RESPONSIBILITIES
Know your rights and responsibilities as a borrower and remember that when you sign a promissory note, you are signing a commitment to repay the money you are borrowing.
Contact This Department
Name of Office
1000 Street Address
Knoxville, TN 37996
Phone: (865) 974-0000
Fax: (865) 974-0000
Email: email@utk.edu