Loan Deferment Terms
Under certain circumstances, students have a right to defer (postpone) repayment of Federal Stafford and/or Direct Loans. Students whose loans were obtained after July 1, 1993, may defer payments for the following conditions:
• Enrolled at least half-time at an eligible institution.
• Engaged in a full-time course of study in a graduate fellowship program.
• Engaged in a full-time rehabilitation training program for individuals with disabilities (if the program is approved by the Department of Education)
• Conscientiously seeking, but unable to find, full-time employment (for up to three years)
• Experiencing an economic hardship as determined by federal law (for up to three years)
Each “Federal Direct Loan Master Promissory Note Instructions and Notices” carries all details for student loans including grace period, interest rates, deferment, forbearance, and consequences of default. Students are required to sign that they have read and understand the guidelines for student loans prior to loan certification.
On-Line Direct Loan Entrance, Exit, and Master Promissory Note Procedures
The Federal government requires these forms to be completed on-line. UT Southern is directing all students and parents to complete these loan forms on-line. On the UT Southern website there is a “Financial Aid Forms” bullet under the Financial Aid Heading. This opens a list of forms and the links to complete the on-line forms for Direct Loan Entrance, Direct Loan Master Promissory Note (MPN), Parent Plus Loan MPN, and the Direct Loan Exit. This information can also be accessed at studentaid.gov/. These forms are required by the U.S. Department of Education.
Notification of Federal Loan Disbursement Policy
UT Southern hereby notifies students who have accepted Federal Direct Loans as part of their financial aid award package (or whose parents are receiving Federal Plus Loans) that loan disbursements will arrive at the University in the form of an Electronic Funds Transfer (EFT) with a roster of all loans in the transfer. The loan amounts, by federal regulation, must be released by the lenders in equal installments to cover the periods of enrollment of the academic term. If eligible, the loan disbursements will be disbursed to the University after census day. Loan proceeds will be credited to the student’s account within 3 days of receipt and any excess refunded to the borrower within 14 days after the University’s receipt of the funds if a credit balance is generated and a request to hold a credit balance is not on file in the business office. Under rules dictated by the federal government the University is not allowed to release the first loan disbursement to a first-year, first time undergraduate until thirty days after the first day of class of the semester or module have elapsed.
Cohort Default Rate
The 3 year cohort default rate was 4.7% for 2019.
Institutional Review Panel
To participate in the Tennessee Educational Lottery Scholarship program the University must have a TELS Institutional Review Panel. The purpose of the panel is to hear appeals from students who for justifiable reasons did not comply with the continuous fulltime enrollment rule that is the TELS requirement. Possible appeals will result from medical and personal problems experienced by the student such as illness, death of a family member, religious requirements, employment requirements, etc. The IRP is composed of one member of the faculty, one member of the staff and one student. The IRP will consider appeals and student requests for leaves of absence.
Official University Census Day (for Lottery Scholarships)
To administer the Tennessee Educational Lottery Scholarship (TELS) the University must declare an official census day. A census day is the date:
• before which classes dropped do not count toward the 24 hours attempted rule for calculating a continuing student’s eligibility for the lottery scholarship and
• after which any class dropped will be counted as hours attempted (and for which no quality points will be assigned thereby making it imperative that the student perform well on other classes in order to attain a grade point average that will enable them to continue to receive the TELS).
It has been determined that the 14th day of the term be the official census date.