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Loan Information
Loans are sources of funding that allow you to spread the cost of your education over time. Loans are available from various sources, including federal and state governments, the University and private lenders. As you progress toward your degree completion, the amount of loan you are awarded at UTPA typically increases. Contact us by email at loans@panam.edu. When you take out a student loan, you must pay it back -- even if you do not complete your education. A Federal Perkins Loan is a low interest loan (5 percent) for both undergraduate and graduate students with exceptional financial need. The Federal Perkins Loans are made through UTPA's Financial Aid Office and UTPA is the lender. This loan is made available through government funds and you must repay this loan.
Depending on the funding level and when a student applies for aid, at UTPA a student can borrower up to $4,000.00 for each academic year, including summer, as an undergraduate or graduate student.
At UTPA your Federal Perkins Loan award will be credited to your account to pay for tuition and fees and any remaining credit will be directly disbursed to you by check. If you are a first time borrower or transfer student, you must complete a Pre-Loan Counseling Session and sign a Master Promissory Note. Click Here to access the Promissory Note. You are not required to make any payments on this loan as long as you are enrolled at least half-time. I you go below half-time enrollment, drop-out, or graduate, you will have a 9 months grace period, after which you must begin repayment on your Federal Perkins Loan. You may be allowed up to ten years to repay the loan. The payment amounts depend on the size of the debt and the length of the repayment period. The minimum payment if $40 a month. You can postpone payments on your Federal Perkins Loan by filing for a deferment or forbearance. In a deferment, you are allowed to temporarily postpone payments on your loan and no interest accrues. You may receive a deferment under certain conditions, such as unemployment, economic hardship, enrolled at least half-time study at a post secondary school, engaged in service listed under discharge/cancellation conditions, or study in an approved graduate fellowship program or in an approved rehabilitation training program for the disabled. Deferments are not automatic. You must apply for one through your school and in a timely manner or late charges will be applied. In a forbearance, you need not be eligible for a deferment. A forbearance is put into effect for a specific period because you are unable to meet your repayment schedule. During this period, your payments are postponed or reduced. Interest continues to accrue and you will repay it when you start on repayment again. You may be granted forbearance in up to 12-month intervals for up to three years. You must apply for forbearance in writing to UT-Pan American Financial Aid Accounting, AB 214. When you take out a student loan, you have certain responsibilities such as making payments on your loan even if you do not receive a bill or repayment notice, you must contact your lender when you graduate, withdraw or drop below half-time from school, you must notify your lender when you change your name, address or social security number or when you transfer to another school. Federal Stafford Loans are a major form of self-help aid and are available through the Federal Family Educational Loan Program. Stafford loans must be repaid after you graduate, leave school or drop below half-time enrollment. The maximum amounts that may be borrowed under the Stafford Loan Program varies on classification. Freshmen may borrow up to $2,625, Sophomores may borrow up to $3,500 and Juniors or Seniors, may borrow up to $5,500 as long as you do not exceed your cost of attendance..
The total debt you can have outstanding from all Stafford Loans combined is $23,000 as a dependent undergraduate student; $46,000 as an independent undergraduate student (no more than $23,000 of this amount may be in subsidized loans); or $138,500 as a graduate or professional student (no more than $65,500 of this amount may be subsidized loans). The graduate debt limit includes any Stafford Loans received for undergraduate study. If your Stafford Loan was first disbursed on or after July 1, 1994, the interest rate could change each year of repayment, but it will never exceed 8.25 percent. The interest rate is adjusted each year on July 1. You will be notified of interest rate changes throughout the life of the loan. If a Stafford Loan was first disbursed before July 1, 1994, the interest rate on these loans may be different. You will pay an origination fee of 3 percent, deducted proportionately from each disbursement of your loan. For an FFEL Stafford Loan, a portion of this fee goes to the federal government to help reduce the cost of the loans.
You pay these loans after you graduate, leave school, or drop below half-time enrollment, you have six months before you begin repayment. This is called a "grace period." After you leave school or drop below half-time enrollment, you will receive information about repayment and will be notified of the date repayment begins. However, you are responsible for beginning repayment, even if you do not receive this information.
Stafford Exit Counseling Sessions. Exit Counseling Sessions must be completed by students who are graduating, withdrawing, or dropping below six hours. Click below to complete an Online Exit Session:
For graduates and undergraduates enrolled at least half-time. You must demonstrate financial need as determined by the information provided on the FAFSA. For Subsidized Stafford Loans, the federal government pays the interest while you are enrolled in school at least half-time and during grace period. The interest rate is variable for new borrowers, with a maximum of 8.25%. Borrowers who currently have 7%, 8% or 9% Stafford Loans will continue at the same rates. These low interest loans are made by federal and state governments, banks, savings and loans, credit unions and other commercial lenders who participate in the program. Contact the UTPA Financial Aid Office for more information at (956)-381-2501. Unsubsidized Stafford Loan (UNSUB) For graduates and undergraduate students enrolled at least half-time. Unsubsidized Federal Stafford Loans are not based on need, although you must file the FAFSA to be considered. The interest rate is variable with a maximum of 8.25%. Interest will be charged from the time the loan is disbursed to you, until it is paid in full. You can choose to pay the interest while you are in school or allow it to accumulate. However, allowing it to accumulate will increase the total amount you have to repay. Contact the UTPA Financial Aid Office for application information at (956)-381-2501. Loans made to credit-worthy natural or adoptive parents of eligible dependent undergraduate students. Although you must file a FAFSA, PLUS loans are not based on need and may be used to replace all or part of the expected family share. The interest rate is variable and set each July. The maximum interest rate that will ever be charged is 9%. A 3% origination fee will be charged. Borrowers must begin repaying principal and interest within 60 days of disbursement. Contact the UTPA Financial Aid Office for application information at (956)-381-2501.
UTPA Emergency Loans are available to assist in payment of tuition and fees only. Emergency Loan funds are limited and students are encouraged to apply early. For more information on deadlines and the application process contact the UTPA Loan Collections Office at (956) 381-2723. Pre-Loan and Exit Counseling Sessions: Perkins Pre-Loan Counseling Sessions must be completed by first-time borrowers or transfer students. Sessions are available online. Click here to complete On-Line Pre-Loan Session. Perkins Exit Counseling Sessions. Exit Counseling Sessions must be completed by borrowers who are graduating, withdrawing, or dropping below six hours. Click here to complete On-Line Exit Session. Educational loans can be an excellent resource for students if there are no other viable alternatives to meet college costs. However, the amount of debt that is incurred must be controlled. A student loan is a serious financial obligation which must be repaid. Borrowing money will have a long-term effect on one's future. Failure to make payments in a timely manner can affect one's future ability to borrow for other purposes. When borrowing, it is important that you consider the amount of indebtedness that will be manageable. The ability to repay will depend on one's lifestyle, expected starting salary and earning prospects. Repayment of student loans is based on the interest at the time of your first disbursement and begins six months for Stafford Loans and at nine months for Perkins Loans after graduating or dropping to less than half-time status from UTPA. Borrowers have up to ten years to repay. The minimum monthly installment begins at $50.00. It is responsibility of the borrower to keep in contact with the lender(s) when he leaves school or graduates, drops below half-time enrollment, changes schools, has a deferment and is no longer meeting its eligibility requirements, changes names, changes address, is having difficulty making payments, wishes to request a forbearance, wishes to defer the loan, or would like information on how to consolidate student loans. AVOID DEFAULT! With very few exceptions you are always legally bound to repay your loan(s). Failure to do so can jeopardize your entire future. If you default:
Defaulting on a loan is never an acceptable alternative. Don' t take chances with your future. If you' re having difficulty repaying your loan, contact the lender/servicer immediately. Usually there is a solution to your problem. Deferment/Forbearance Information In-School-Deferment: If you re-enrolled at an Institute of Higher Education for at least 6 hours, you will be eligible for a deferment on the payment of your loan for the entire time you remain enrolled at least half-time. To have a deferment applied to your loan click here, print the paperwork, fill it out and turn it in to the Office of Student Financial Services. Economic-Hardship-Deferment: In case of economic hardship, the lender might also grant the option to defer the payment for up to 1 year without interest accruing. All you need to do is click here, print the paperwork, fill it out and turn it in to the servicer of your student loan with supporting paperwork of your economic hardship situation. Forbearance: The Forbearance offers you the possibility to have your loan taken off repayment for up to 1 year, while interest is being added to the principle of the loan. To have your student loan put on a forbearance either contact your student loan servicer or download the needed paperwork from their websites. Below we supplied all needed links. If you need additional information please contact the Default Prevention Officer at (956) 381-2144 or email to Loans@panam.edu. Sallie Mae 1-888-272-5543 NELNET 1-800-375-7013 COSTEP 1-800-949-6371 Edfinancial 1-888-337-6884 Panhandle Plains 1-800-736-5727 Loanstar Education Loans 1-800-347-3475 Citibank 1-800-967-2400 ACS 1-800-834-6511 Wells Fargo 1-800-658-3567 For more information on debt management, contact the Default Prevention Officer at the UTPA Financial Aid Office.
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