| Loans |
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. 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. Before your account is credited, you must sign a promissory note. If you are a first time borrower you must attend a Pre-Loan Counseling Session and sign a promissory note. If you are attending school at least half-time, you have nine months after graduation or a break in enrollment before you must begin repayment on your Federal Perkins Loan. Those nine months are called the grace period and when the grace period ends, you must begin repayment on the 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. 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; you are responsible for it. This is not automatic either. 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.
If you are a first-time borrower you must participate in a Pre-loan Counseling Session offered by the Financial Aid Office. Click here for more information on Pre-Loan Counseling Sessions.
Before leaving UTPA, you must complete an Exit Counseling Session as a student loan borrower. The session is available online at www.mapping-your-future.org/exitcounseling. We will be notified automatically once you complete it. 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. 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. 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%. The current interest rate is 8.26% only until 10-1-98. 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. 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. UTPA Installment Plan is available to assist students in payment of tuition and fees only. A $22.50 contract fee and half of tuition and fees will be due when submitting the paperwork and the remaining installments will have assigned due dates. For more information on the installment plan, contact UTPA Payments and Collections Office at (956) 381-2715. Prior to the release of the student's first loan check, the student must attend a Pre-Loan Counseling Session. These are scheduled throughout the year at the Financial Aid Office. This applies to students who have never received a student loan at UTPA. Failure to attend the Pre-Loan Counseling Session will result in the loan being cancelled. Stafford Loan funds (not a check) must be returned to the lender within 10 days if not disbursed to student. Before leaving UTPA, all students who received a Stafford or Perkins loan must attend an Exit Counseling Session. These sessions are held throughout the semester. You will be asked to provide your driver's license number, future address, future employer's name and address and references with complete addresses. We are required by law to provide this information to the guarantee agency responsible for your student loans. Students who are graduating will be notified about these sessions. A student who withdraws or drops below half-time status must also attend an Exit Counseling Session. Failure to attend an Exit Counseling Session may result in a HOLD being placed on student University records. This means that the student will not be allowed to have access to grade transcripts and/or degrees you have earned at UTPA. 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. SERVICING AGENCIES IN TEXAS Sallie Mae 1-800-343-5904 UNIPAC 1-800-375-7013 Brazos Higher Education Authority 1-800-375-9208 COSTEP 1-800-949-6371 Greater East Texas 1-800-829-4599 Panhandle Plains 1-800-736-5727 Texas Higher Education Coordinating Board 1-800-242-3062 For more information on debt management, contact the Default Prevention Officer at the UTPA Financial Aid Office. Return to TOP. |
