Not paying back your student loan can have serious consequences. If you go into default your lender can require you to repay the entire amount immediately, including all interest plus collection and late payment charges. The lender can sue you and can ask the federal government for help in collecting from you. The Internal Revenue Service may withhold your income tax refund and apply it toward your loan. You cannot receive any additional federal student aid until you make satisfactory arrangements to repay your loan. Your grades and official transcripts will be held until you resolve the default status. Also, the lender may notify credit bureaus of your default. This may affect your credit rating which will make it difficult to obtain credit cards and car loans in the future.
FAQs Related to Types of Aid
Submitting a signed UCF Federal Direct Grad PLUS Loan application through the www.studentaid.gov website is your acceptance of the Federal Direct Grad PLUS Loan.
Learn how to apply for a Federal Direct Grad PLUS Loan and important dates.
Learn how to apply for a Federal Direct Parent PLUS Loan and important dates.
Repayment can be deferred while the student is enrolled in school for at least half-time. Please refer to www.studentaid.gov for the process of requesting an in school deferment or call 1-800-433-3243.
For information about loan disbursements, please visit our Disbursement of Financial Aid webpage. For details of the loan eligibility criteria, please our Parent PLUS Loan webpage.
Planning ahead is essential to managing debt. If you plan to borrow each year you are in school, estimate the total amount you will borrow. Then use the Federal Student Aid Estimator to estimate how much federal student aid the student may be eligible to receive. Then decide how much to borrow, you can use the criteria lenders use when they consider an applicant’s ability to repay.
The total monthly payment for all debts should not exceed 8% of your gross monthly salary.
Yes. If you only want to accept fall loans, you should submit acceptance for only the fall loans, one loan at a time. If you have Subsidized loans in your financial aid package, accept and submit the fall Subsidized loan first. After the confirmation screen, accept and submit the fall Unsubsidized loan next. Do not submit all acceptances at one time and do not touch the spring loans.
If you requested the post office to forward your mail to the new address, please allow at least 14 days to receive the refund check.
If you have not received the check in 14 days:
- Email your new address with the subject heading, “PLUS Loan Mailing Address Change,” to the SFA Loan Department.
- Download and submit a completed Stop Payment Request Form to Student Accounts.
For answers about consolidation, please visit studentaid.gov/loan-consolidation.
You may also call 1-800-557-7392 to speak to a representative about loan consolidation.
A change in career goals, the loss of a job, or other unexpected changes in your situation could make repaying your loan more difficult than you expected. In some cases, and at the lender’s option, you may be permitted to temporarily stop making your payments, or your lender may accept smaller payments than scheduled. This is called a forbearance. In addition, for some loans, you may defer repayments temporarily which may help. The promissory note outlines the specific terms under which you may be granted a deferment. Contact your loan servicer if you think you may need to make arrangements. To view your servicer’s contact information, please visit visit StudentAid.gov.
The Federal Government sets the interest rate July 1st of each year.
The interest rates are the same for Stafford Loans in the Federal Direct Loan Program and FFELP, but the Direct Loan Program offers lower interest rates in the PLUS and Grad PLUS programs.
For interest rates, please refer to the Federal Student Aid Interest Rates website and the Loan Comparison Chart.
Visit studentaid.gov to view which company is currently servicing your loans and their contact information.
If you are returning your Direct Loan refund, contact your servicer for repayment options. To view your servicer’s contact information, please visit StudentAid.gov.
You can view the Student Loan Code of Conduct under the Policies section of our website.
Enrollment verification is done through the National Student Clearinghouse, which students can access for free via myUCF. On the Student Center page, there is a drop-down box that says Other Academic. Students can open that and select Enrollment Verification. In-school deferment is all handled automatically when the National Student Clearinghouse forwards their enrollment information to the National Student Loan Data System, so there is almost never a need for paper forms unless their information was reported incorrectly. Please note, we cannot certify anything until after the Add/Drop period of each semester.
If you have already completed a Master Promissory Note at UCF (without an endorser) you do not have to complete a new one.
However, if your loan required an endorser for credit approval, you must complete a new Master Promissory Note.
All new borrowers at UCF must complete a new Master Promissory Note.
Yes. The Direct Stafford Loan Master Promissory Note is only valid for Direct Stafford Loans. You must also sign a new Federal Direct Grad PLUS Master Promissory Note.
If your credit has been denied for the Federal Direct GRAD PLUS Loan, you will be given options on the www.StudentLoans.gov application to choose from:
I will obtain an endorser*
- Choose this option if you would like to add a co-signer.
- Students should notify the SFA Loan Department in order for the Grad PLUS loan to be awarded if your credit is approved with an endorser.
- Borrowers who required an endorser for approval of the GRAD PLUS loan must sign a new MPN for any supplemental or future GRAD PLUS loan.
- Borrowers whose Direct GRAD PLUS Loan credit checks are denied on or after March 29th, 2015 and then approved with an endorser, must also complete a PLUS Counseling before the Direct GRAD PLUS Loan can be disbursed. The U.S. Department of Education will notify the borrower about the PLUS Counseling instructions
I want to appeal the credit decision*
- Choose this option if you believe the credit check is inaccurate or you can provide updated information about extenuating circumstances
- Students should notify the SFA Loan Department in order for the Grad PLUS loan to be awarded if your appeal has been approved.
- Borrowers whose Direct GRAD PLUS Loan credit checks are denied on or after March 29th, 2015 and then approved through a credit appeal, must complete a PLUS Counseling before the Direct PLUS Loan can be disbursed. The U.S. Department of Education will notify the borrower about the PLUS Counseling instructions.
*For instructions on how to appeal or how to reapply using an endorser, please contact the Department of Education’s Applicant Services at 1-800-557-7394
For information about loan disbursements, please visit our Disbursement of Financial Aid webpage.
The time that it takes to process a loan is contingent upon students meeting/completing all loan eligibility criteria.
For details of the loan eligibility criteria, please visit the Federal Grad PLUS Loan webpage.
You cannot reduce or decline your Federal Direct Grad PLUS Loan on myUCF.
Please complete the online Loan Adjustment Form from the Financial Aid Forms webpage.
A dependent student whose parent has been denied a PLUS loan during the current aid year may be eligible to receive Federal Direct Unsubsidized Stafford loans at the independent level with proof of PLUS loan denial from the lender.
If your credit has been denied for the Parent PLUS Loan, you will be given four options on the www.StudentLoans.gov application to choose from:
- I do not wish to pursue a PLUS loan at this time.
- Undecided.
- I will obtain an endorser*
- Choose this option if you would like to add a co-signer.
- Parents should notify the SFA Loan Department in order for the PLUS loan to be awarded if your credit is approved with an endorser.
- Borrowers who required an endorser for approval of the PLUS loan must sign a new MPN for any supplemental or future PLUS loan.
- Borrowers whose Direct PLUS Loan credit checks are denied on or after March 29th, 2015 and then approved with an endorser, must complete a PLUS Counseling before the Direct PLUS Loan can be disbursed. The U.S. Department of Education will notify the borrower about the PLUS Counseling instructions.
- If we do not receive an update for a credit approval within 3- 4 weeks, the additional Federal Direct Unsubsidized Stafford loan will automatically be offered to the student, in which the student may choose to accept, reduce, or decline the loan through the myUCF View Financial Aid “Accept/Decline Awards.”
- I want to appeal the credit decision*
- Choose this option if you believe the credit check is inaccurate or you can provide updated information about extenuating circumstances.
- Parents should notify the SFA Loan Department in order for the PLUS loan to be awarded if your appeal has been approved.
- Borrowers whose Direct PLUS Loan credit checks are denied on or after March 29th, 2015 and then approved through a credit appeal, must complete a PLUS Counseling before the Direct PLUS Loan can be disbursed. The U.S. Department of Education will notify the borrower about the PLUS Counseling instructions.
- If we do not receive an update for a credit approval within 3- 4 weeks, the additional Federal Direct Unsubsidized Stafford loan will automatically be offered to the student, in which the student may choose to accept, reduce, or decline the loan through the myUCF View Financial Aid “Accept/Decline Awards.”
The additional Federal Direct Unsubsidized Stafford loan will automatically be offered to the student, in which the student may choose to accept, reduce, or decline the loan through the myUCF View Financial Aid “Accept/Decline Awards.” Please allow at least two weeks for processing the additional offered loan upon receipt of a PLUS denial.
The additional Federal Direct Unsubsidized Stafford loan will automatically be offered to the student, in which the student may choose to accept, reduce, or decline the loan through the myUCF View Financial Aid “Accept/Decline Awards.” Please allow at least two weeks for processing the additional offered loan upon receipt of a PLUS denial.
*For instructions on how to appeal or how to reapply using an endorser, please contact the Department of Education’s Applicant Services at 1-800-557-7394. If the PLUS credit decision is approved after the parent appeals or reapplies with an endorser, the student is no longer eligible to receive the additional Unsubsidized Stafford loan.
If you have already completed a Master Promissory Note at UCF (without an endorser) you do not have to complete a new one.
However, if your loan required an endorser for credit approval, you must complete a new Master Promissory Note.
All new borrowers at UCF must complete a new Master Promissory Note.
The time that it takes to process a loan is contingent upon your student meeting/completing all loan eligibility criteria.
Loan processing is also contingent upon the parent meeting/completing all loan eligibility criteria, including the following:
- Federal Direct PLUS Loan Application
- Master Promissory Note
- Approved Credit Check
- U.S. citizenship status or an eligible non-citizenship status as defined by the FAFSA
For details of the loan eligibility criteria, please visit the Federal PLUS Loan.
You cannot reduce or decline your Federal Direct Parent PLUS Loan on myUCF. Please complete the online Loan Adjustment Form from the Financial Aid Forms website.
No. The Federal Direct Parent PLUS Loan refund must be refunded to the parent, not to the student. The refund check will be mailed to the address you that you entered on the loan application.
When your To-Do List has been completed, you will be able to accept, reduce, or decline offered loans online through the myUCF Self-Service.
For the upcoming new year, students will receive an email notification after mid-July, announcing when the myUCF Self-Service feature will be made available.
In order for the loans to defer tuition and fees, you must accept the offered loans on myUCF View Financial Aid, Accept/Decline Awards screen.
If you have incomplete required documents on your To-Do List, you will not have access to accept your loans until all required documentation has been submitted.
No. If you already completed an Entrance Counseling while at UCF, you do not have to do a new one for Federal Direct Loans.
Transfer Students: If you were awarded a Federal Stafford Direct Loan during this academic year at another institution, make sure that the remainder of that loan is canceled at your previous school before applying for a loan at UCF.
Loans are not processed until you actually accept them.
To accept the Direct Subsidized Loan, click on the accept option next to the Direct Subsidized Loan.
If you do not want the Direct Unsubsidized Loan, click on the decline option next to the Direct Unsubsidized Loan amount and the offered loan will be zeroed out.
When you are finished, click on the Submit button.
For information about loan disbursements, please visit our Disbursement of Financial Aid webpage.
You may still reduce or decline a loan online through the myUCF Portal even after you have submitted an acceptance, as long as the loan has not disbursed.
If you have declined an entire loan or reduced an undisbursed loan in error, please complete and submit the online Loan Adjustment Form from the Forms web page indicating your final request.
All loan adjustment requests must be made by the deadlines listed.
If you have already completed a Federal Direct Master Promissory Note at UCF, you do not have to complete a new one unless the MPN has expired.
All new borrowers at UCF must complete a new Master Promissory Note.
The time that it takes to process a loan is contingent upon students meeting/completing all loan eligibility criteria.
For details of the loan eligibility criteria, please visit the Federal Stafford Loan webpage.
All required documents on the To-Do List must be submitted at least 60 days prior to the beginning of the semester to ensure timely deferments and/or disbursements.
The Federal Direct Loan Program has no impact on a direct deposit account that you have already established.
No, subsidized loans will only be available to undergraduate students. Graduate and professional students will receive their maximum federal direct loan eligibility in Federal Direct Unsubsidized Loans.