Apply for a
Stafford Loan
Apply for an
Alternative Loan
Apply for an
Graduate PLUS Loan
Graduate and Adult Studies Loans
Educational Loans Overview
Many students find they must supplement the resources they have to meet the expenses associated with a quality college education through taking advantage of low interest educational loans. These loans differ from a personal loan or home equity loan in that the funds are to be used exclusively for college expenses. Students may borrow in funds under the Federal Stafford Loan Program, even if they have not established a credit record. Repayment on the Federal Stafford Loan is deferred as long as the student is enrolled in college at least ½ time . If additional funds are needed, Alternative Educational loans are available from certain lenders.
Any questions you have regarding Educational Loans may be directed to Mrs. Bobbie Bishop, Financial Aid Officer/Loan Coordinator, at (731-661-5212) or bbishop@uu.edu.
To apply for any of the following, all students follow the appropriate steps in How to Apply for Financial Assistance. Filing the FAFSA is also required for the Federal Stafford Loan.
The Federal Stafford Loan
The Federal Stafford Loan enables students who are enrolled at least half-time and degree seeking to borrow low interest loans. Payment on these loans begins 6 months after graduation or after a student is no longer enrolled at least half-time.
| Dependent Students: | Independent Students: | Graduate: |
| Freshman $5,500* | Freshman $9,500* | Up to $20,500* depending on Cost of Program Enrolled |
| Sophomore $6,500* | Sophomore $10,500* | |
| Junior and Senior $7,500 | Junior and Senior $12,500 |
Maximum Stafford Loan amounts for Non-Traditional Programs will vary. The Office of Student Financial Planning will award the maximum amount you are eligible to receive for your Program of Study.
Students must file the Free Application for Federal Student Aid (FAFSA) each academic year to be eligible to apply for the Stafford Loan.
There are two types of Stafford Loans: (The type is determined by the FAFSA results)
- Subsidized (Need Based) - The Federal government pays the interest while the student is enrolled at least half-time.
- Unsubsidized (non-need based) - The student is responsible for interest which may be paid while enrolled or capitalized (added to the Principal of the loan).
The College Cost Reduction and Access Act of 2007 gradually reduced the fixed interest rates on newly originated subsidized Stafford loans for undergraduate students to 6.0% (2008-09), 5.6% (2009-10), 4.5% (2010-11) and 3.4% (2011-12); however, the rate will return to 6.8% in 2012-13. These reductions are available only to undergraduate students, not graduate students, and only for subsidized Stafford loans, not unsubsidized Stafford loans. Unsubsidized Stafford loans remain at a fixed rate of 6.8%.
A Federal Stafford Loan Master Promissory Note (MPN) must be completed with the lender you select for your Stafford Loan. You will only need to complete this MPN the first time you apply for a loan at Union. The MPN is a Serial Note and good for up to 10 years. You are able to E-Sign this MPN using Union's Online Lender List
Your Lender will send you a Notice of Loan Guarantee with your loan amounts, anticipated loan disbursement dates, and your loan award period. Loan funds are normally disbursed in equal installments. Loan funds are credited to the student’s account within 3 days after the funds are received and the student has met all federal requirements. If a student is due a credit balance check, it may be picked up within 14 days after the credit occurs at Union Station on the Jackson campus(for Jackson students) or in Room 105 on the Germantown campus (for Germantown students). See our Schedule of Loan Refund Dates.
Graduate PLUS Loan
Graduate and professional students are now eligible to borrow under the PLUS Loan Program up to their cost of attendance minus other estimated financial assistance. The terms and conditions applicable to Parent PLUS Loans also apply to Graduate/Professional PLUS Loans. These requirements include a determination that the applicant does not have an adverse credit history, repayment beginning on the date of the last disbursement of the loan, and a fixed interest rate of 8.5%. Applicants for these loans are required to complete the Free Application for Federal Student Aid (FAFSA). They also must have applied for their annual loan maximum eligibility under the Federal Subsidized and Unsubsidized Stafford Loan Program before applying for a Graduate/Professional PLUS Loan. Students must complete Grad PLUS Entrance Counseling.
Alternative Loans
This is a non-federal educational loan available through private lenders. The loan is borrowed by the student but generally requires a co-signer. The interest rate is variable and is set by the individual lender. Information regarding lenders that offer alternative loans is available online using Union's Online Lender List.
Priority Deadlines
Priority deadline means the following documents have been submitted to the Office of Student Financial Planning by the appropriate date listed below.
- Union University Adult/Graduate Application for Financial Assistance has been submitted to the Office of Student Financial Planning.
- FAFSA (for the appropriate aid year) has been filed and processed and verification process is completed if selected for verification.
- Stafford Entrance Counseling completed.
- Accepted to the University.
Students must also be accepted to Union University by the priority deadline before any financial aid can be awarded.
| Cohort or Regular Term Start Date | Priority Deadline Date |
|---|---|
| January, February, or March | November 15 |
| April or May | February 1 |
| June, July, or August | May 1 |
| September or October | July 15 |
| November or December | September 1 |
Data submitted by students after the priority deadline associated with their program of study will be processed as time allows. Funds may not be available at the start of the program.
If a student’s aid is not processed at the time of registration, the institution may require that payment be made or alternate payment arrangements be made in order to register for classes.
Loan FAQs
- What is the difference between a Subsidized and an Unsubsidized Federal Stafford Loan?
- What is a Master Promissory Note?
- How do I select a lender for a Stafford or Alternative Loan?
- What are the interest rates on Educational Loans?
- How will I be notified I have an approved loan?
- When will the loan funds be credited to my student account?
- What is Entrance Counseling?
- If I have an overage (credit balance) on my account when the loan funds come in, how and when can I get that money?
- When does the Federal Stafford Loan have to be paid back?
- Can my loans be forgiven or canceled?
For the Subsidized Stafford Loan, the federal government pays the interest for the student while he is in school at least half time, and during the 6 month grace period before repayment begins. For the Unsubsidized Stafford Loan, the student is responsible for the interest while in school. The interest can be paid on a quarterly basis while the student is in school, or can be capitalized (that is rolled into the principle) and payment deferred.
The Master Promissory Note (MPN) is a Serial Note for the Federal Stafford Loan or Federal PLUS, valid for up to 10 years. Once a student has signed an original Master Promissory Note with a lender, a new MPN will not be required for subsequent years unless there is a change in the lender. There is also a Master Promissory Note for the Federal Perkins Loan, held by Union University.
Union has a Lenders List for you to select your lender and apply on line. There are advantages of selecting one of these lenders: a) the federal loans are guaranteed through the State of Tennessee, and b) federal funds are transmitted to Union by electronic means. This expedites the processing and receiving of loans. If you choose to apply for an Alternative Educational Loan, Union requires you to select a lender from our Lenders List.
The College Cost Reduction and Access Act of 2007 gradually reduced the fixed interest rates on newly originated subsidized Stafford loans for undergraduate students to 6.0% (2008-09), 5.6% (2009-10), 4.5% (2010-11) and 3.4% (2011-12); however, the rate will return to 6.8% in 2012-13. These reductions are available only to undergraduate students, not graduate students, and only for subsidized Stafford loans, not unsubsidized Stafford loans. Unsubsidized Stafford loans remain at a fixed rate of 6.8%.
Federal Graduate PLUS Loan rates are 8.5% and rates on Alternative Loans are based on creditworthiness and vary with each lender.
Students will be notified in an Award Letter of the proposed loan amount(s) each academic year. If the student wants to decline or lower the amount, they should indicate such changes on the Acceptance Letter, sign it, and return it to the Office of Student Financial Planning.
The lender will send notification of the anticipated disbursement dates, loan amounts and Loan period to the student’s home address.
The Office of Student Financial Planning will notify the student by email when the funds are credited to your Student Account. Federal regulations require that funds be credited to the student within 3 days after funds are received. Note that first-time borrowers must complete Entrance Counseling before funds will be awarded and credited to their student account.
In order to ensure that every federal loan borrower understands completely the loan program, the federal government requires first time borrowers at Union to complete entrance counseling before funds can be credited to the student’s account. After completion of online entrance counseling, the Office of Student Financial Planning will be automatically notified by email, and your funds will be disbursed. This applies to Federal Stafford, Perkins, & Grad PLUS loans.
Students who have a credit balance on their student account as a result of loan funds may pick up a check at Union Station on the Jackson campus(for Jackson students) or in Room 105 on the Germantown campus (for Germantown students). If you wish to have your check mailed to you, please call Union Station at 731-661-5000. Funds are normally available 14 days after the credit occurs. See our Schedule of Loan Refund Dates.
Repayment of a Federal Stafford Loan begins 6 months after the student obtains his degree or ceases to be at least a ½ -time student.
General Loan Forgiveness Information
Federal Stafford Loan Teacher Forgiveness Program
Federal Perkins Loan Teacher Cancellation
American Federation of Teachers
