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Loans

Loans are borrowed money that must be repaid with interest. Both undergraduate and graduate students may borrow money. Parents also may borrow to pay education expenses for dependent undergraduate students. Maximum loan amounts are listed in the table below. However, loan amounts may not exceed that listed on the award letter. U.T. Permian Basin participates in the Federal Family Education Loan Program (FFEL), in which private lenders provide the funds for Federal Stafford Loans.

You must complete the FAFSA in order to qualify for loans. It is important that the FAFSA be completed as soon as possible to avoid delays in awarding loans.

STAFFORD LOANS

The Federal Stafford Loan is a government-sponsored, low interest loan that helps students pay for their education beyond high school.  There are two types of Federal Stafford Loans, subsidized and unsubsidized.

Subsidized Stafford Loan - a need-based loan, for which the government pays your interest while you are in school (you must be enrolled for at least 6 credit hours) and during grace and deferment periods.

Unsubsidized Stafford Loan - the borrower is responsible for interest from the time the loan is disbursed until the loan is paid in full.  You may choose to make interest payments while you are in school, or it can be capitalized. You must be enrolled in 6 credit hours in order to receive an unsubsidized loan.

TO APPLY FOR A STAFFORD LOAN:  You must first complete the Application Process for Financial Aid (which includes the FAFSA).  If the award letter you receive from the Office of Financial Aid states that you qualify for a Stafford Loan, AND you have registered for classes, then you may complete a Stafford Loan Request by going to https://lbw.tgslc.org.

STAFFORD LOANS BY WEB GUIDE:  This form is used to guide you through the online loan acceptance process. This guide is available upon request in The Office of Student Financial Aid.  You must complete this process each time you want to apply for Stafford Loan Funds.


MASTER PROMISSORY NOTE (MPN): This form will be mailed to you by the lender after you have completed the Stafford Loan Request Form. You MUST complete the MPN and return it to your lender by mail in order for the loan funds to be sent to U. T. Permian Basin. Do NOT bring the MPN to the Office of Financial Aid. If you think that you may have already completed a valid MPN, call your lender and confirm it.

ANNUAL STAFFORD LOAN LIMITS: In general, your grade level in your current program of study and your dependency status determines the maximum amount(s) you can borrow in an academic year (not to exceed the cost of attendance). Your dependency status is determined by information provided on your FAFSA. Your grade level in your program of study is determined according to the following scale (effective July 1, 2008):

 

Undergraduate Year In School

No. of Hours Transferred or Earned in Current Program

 

Dependent Maximums- 

 

 

Subsidized Unsubsidized

Independent Maximums*

 

Subsidized    Unsubsidized

First Year

0-29

$3,500          $2,000    

$3,500            $6,000

Second Year

30-59

$4,500          $2,000

$4,500            $6,000

Third Year

60-89

$5,500          $2,000

$5,500            $7,000

Fourth &  
Fifth Year

90+

$5,500          $2,000

$5,500            $7,000

Graduate 
Students

N/A

N/A

$8,500            $12,000

                                                                                   
Independent students can borrow the maximum in both subsidized and unsubsidized money. For example, an independent second year student can borrow up to $10,500. (If the student's cost of attendance is not exceeded).

LIFETIME LOAN LIMITS: Lifetime limits change as your level of curriculum study changes or your depency status changes. The lifetime loan limits are as follows (effective July 1, 2008):

Undergraduate dependent lifetime limit
Undergraduate independent lifetime limit
 Graduate or Professional lifetime limit
$31,000 (up to $23,000 may be subsidized)
$57,500 (between subsidized and unsubsidized)
$138,500 (up to $65,000 may be subsidized) or $224,000 (for health professions)

STAFFORD LOAN DISBURSEMENT: Loan funds sent via Electronic Funds Transfer (EFT) will be credited directly to your U. T. Permian Basin account provided that:

  • you have completed any loan counseling requirement,
  • you are enrolled in at least six (6) credit hours, and
  • you meet all other eligibility requirements.


You can check Campus Connect to determine if your loan funds have been applied to your U. T. Permian Basin student account.

Loan funds mailed to U. T. Permian Basin in the form of a check will be forwarded to the Cashier's Office for you to pick up. You will be mailed notification when your checks are available for pickup.

Important Note: Federal regulations require that all loans be disbursed as follows:

  • For loans covering two semesters, one disbursement will be made at the beginning of each semester
  • For loans covering only one semester, two disbursements will be made (one at the beginning of the semester and another after the mid-point of the semester.)
  • Freshman with a first-time Stafford Loan may not pick up loan checks until 30 days after the first class day, provided that all required documents have been turned in. (This additional waiting period does not apply to PLUS Loans.)

PLUS LOANS (Loans for Parents)
The PLUS Loan is a government-sponsored, low interest loan that is available to parents of dependent undergraduate students. Parents with good credit histories m