MANAGING STUDENT LOANS

Student loans can be an important resource for covering the cost of your education, but they can also become a long-term responsibility. Understanding how loans work, how much you’re borrowing, and how to manage repayment can help you borrow wisely and protect your financial future.

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About Student Loans

Most student loans are borrowed funds that must be repaid with interest. Because they add to your long-term financial commitments, it’s important to borrow only what you need and understand all of your options.

Before borrowing, explore grants, scholarships, and Federal Work-Study. These types of aid do not require repayment.

Types of Student Loans

There are two types of student loans:

Federal Student Loans

These loans typically offer lower interest rates, flexible repayment options, and borrower protections.

Direct Subsidized Loans: For eligible undergraduates with financial need. The federal government pays the interest while you’re enrolled at least part-time and during the six-month grace period following graduation. If you repay this loan before graduating, you will not owe any interest.
Direct Unsubsidized Loans: Available to eligible undergraduate and graduate students. Interest begins accruing as soon as the loan is disbursed.

Alternative (Private) Loans

Private loans come from banks, credit unions, and other lenders. Terms– including interest rates and eligibility– vary widely. These loans often cost more over time, so compare lenders carefully and read all terms before committing.

Learn More About Loans

Understand Borrowing Before You Begin

If you’re exploring college costs, learning about student loans early can help you make informed decisions.

Know the Difference Between Federal and Private Loans: Federal loans typically offer lower interest rates and more flexible repayment options.

Review Non-Loan Aid First: Grants, scholarships, and Federal Work-Study do not require repayment and should be your starting point.

Estimate Potential Borrowing: Look at UT’s cost of attendance, subtract grants/scholarships, and determine what you may need to borrow.

Discuss Expectations at Home: Families should talk openly about contributions, budgeting, and how loan payments could affect future finances.

Use Available Resources: Net price calculators and federal loan simulators can help you plan ahead.

Managing & Monitoring Your Loans

Once you begin borrowing, staying organized will help you borrow wisely and avoid surprises later.

Know Your Loans: For Federal Student Loans, review which loans you’ve accepted in MyUTK and track your lifetime borrowing at studentaid.gov. For Alternative (Private) Loans,

Identify Your Loan Servicer: Your servicer is the company you’ll make payments to after graduation. For Federal Student Loans, log in to studentaid.gov to find yours. For Alternative (Private) Loans, contact your lender.

Understand Your Interest Rates and Terms: Different loans have different interest rates. Minimize the amount of money you must repay in interest by understanding when your loans begin to accrue interest and how much interest they accrue over time.

Borrow Only What You Need: You are not require to accept the full loan amount offered, You can also reduce or cancel loans after accepting.

Stay Eligible: Federal Student Loans require annual FAFSA completion and maintaining Satisfactory Academic Progress (SAP) and Course Program of Study (CPOS) requirements.

Explore Deferment and Forbearance Rules: If you face financial hardship, certain situations may temporarily pause payments or interest.

Planning for Loan Repayment

As your prepare to leave UT, understanding your repayment options will help protect your credit and financial stability.

Use Your Grace Period Wisely: Federal Student Loans typically include a six-month grace period before repayment begins– use this time to budget and plan.

Explore Repayment Plans: Federal repayment options include Standard, Graduated, Extended, and multiple Income-Driven Repayment (IDR) plans.

Set Up Autopay: Many servicers offer an interest rate reduction for automatic payments.

Keep Your Contact Information Updated: Loan servicers must be able to reach your to avoid missed payments or delinquency.

Understand Consolidation and Refinancing: Consolidation (Federal Student Loans) and Refinancing (Alternative (Private) Loans) work differently. Review the long-term tradeoffs carefully.

Protect Your Credit: On-time payments are the single most important factor in maintaining good credit after graduation.

How We Can Help

Understanding student loans can feel overwhelming, but you don’t have to navigate it alone. The Center for Financial Wellness (CFW) is committed to helping Vols build strong financial habits, make informed borrowing decisions, and prepare for successful repayment. Whether you’re exploring loans for the first time or planning for life after graduation, these resources are here to support you.

Center for Financial Wellness (CFW)

CFW provides education, guidance, and tools to help you borrow wisely and repay confidently.

Loan Counseling Appointments: Meet one-on-one with a CFW team member to review your current loans, discuss borrowing decisions, create a repayment plan, or understand how interest works over time.
Loan Repayment Workshops: Learn about repayment strategies, federal repayment plans, interest capitalization, loan forgiveness options, and how to stay on track after graduation. Visit our Workshops/Events calendar to RSVP for our next workshop.

One Stop Student Services

One Stop handles the operational side of financial aid and can help you with:

Accepting or declining student loans in MyUTK
Understanding eligibility requirements
Tracking and submitting required documents
Navigating how your loans appear in your financial aid offer

For personalized borrowing or repayment guidance, CFW is your best resource while One Stop is your hub for completing required steps and maintaining your aid.

Digital Resources

Access a range of online tools and resources to help you manage your money, plan for the future, and navigate key financial decisions.

CashCourse

Why CashCourse Matters

Build confidence managing everyday finances
Understand student loans and repayment options
Learn how to build and monitor credit
Recognize and avoid fraud and identity theft

CashCourse Highlights

Budgeting & Spending: Track expenses and plan ahead with practical tools.
Student Loans: Explore repayment options and model forgiveness scenarios.
Credit Basics: Learn how to build and maintain strong credit.
Fraud & Identity Protection: Identify scams and safeguard your financial information.

How to Register

Visit CashCourse.org
Select Register Now!
Enter UT’s access code: 9595
Verify your account and create a username
Select Let’s Get Started

GradReady

What GradReady Helps You Do

What GradReady Helps You Do
Consolidate federal and private loans in one place
Build a personalized budget
Access tools such as budget planners and investment calculators

New Users

Visit GradReady and select Get Started
Register using your @vols.utk.edu email address and UT enrollment information
Complete your setup until you land on the Success! Page

Returning Users

Visit GradReady
Log in with your @vols.utk.edu credentials

Loan Calculator

Loans can be part of a responsible college financing plan. These tools help you understand your federal loan information and estimate future payments.

Retrieve Your Federal Loan Information

Estimate Your Loan Payments

Interactive Spending Plan

A spending plan helps you identify income, track expenses, and distinguish needs from wants. Understanding your habits allows you to manage money intentionally and work toward your goals.

Download the interactive spending plan to: