The law requires financial aid administrators to determine whether a student is eligible for Federal Pell Grant funds prior to awarding federal loan programs, thereby reducing the student’s need for borrowing. Federal Pell Grant eligibility is determined before originating a subsidized or unsubsidized Federal Direct Loan for the student. In addition, an unsubsidized Direct Loan is not originated without first determining the financial need for a subsidized Federal Direct Loan. However, if the amount of the subsidized Federal Direct Loan is $200 or less and that amount can be included as part of an unsubsidized Federal Direct Loan, Universal Technical Institute is not required to originate a separate subsidized Federal Direct Loan.
For a dependent student, Universal Technical Institute cannot originate a PLUS and disburse PLUS funds without first determining the Federal Pell Grant and subsidized Federal Direct Loan eligibility for the student.
Prior to students receiving private non‑federal loans, Universal Technical Institute requires the exhaustion of all less expensive federal aid eligibility available to the student, to assist in encouraging wise debt management. In no case will a combination of federal, state and private aid be permitted to exceed the student’s cost of attendance as determined by Universal Technical Institute.
Federal grants and loans are processed in academic year increments, which for the purposes of federal aid is defined as a minimum of 24 credits (or 36 credits at the Canton campus) and 30 weeks of instructional time. An academic year is divided into two payment periods (or three payment periods at the Canton campus) during which financial aid funds are ordinarily disbursed. A student is generally eligible to receive funds shortly after attendance has begun during the first payment period at the beginning of the academic year and during the second payment period after the midpoint of the academic year.