Loan Options to Help Make College Affordable

Financial Aid

Loan Options

The following loan options are available while attending UT Tyler:

• Federal Direct Loan Program (Subsidized and Unsubsidized)
• Direct Parent PLUS/Grad PLUS Loan Program

With Direct Loans, students and/or parents:

• Borrow directly from the federal government and have a single contact, loan servicer, for everything related to the repayment of loans.
• Have online access to your loan account information
• Choose from several repayment plans that are designed to meet the needs of borrowers.

 

Direct Loan Program Information

Prior to disbursement, student borrowers must:

• Be enrolled in at least six hours (half-time) each semester at UT Tyler
• Complete Entrance Loan Counseling - All new/transfer student borrowers.
• Complete a Master Promissory Note - All new and transfer student borrowers.

Federal Direct Subsidized Loan Program Information

Subsidized Direct loans are awarded on the basis of need. The interest that accrues on this loan while a student is in school is subsidized (or paid) by the federal government. Typically, the government will subsidize the interest rate until the loan enters into repayment (to include the grace period of the loan). Due to legislative changes, subsidized Stafford loans made July 1, 2012 through July 1, 2014 will begin to accrue interest during the grace period.

Current Interest Rates

 Federal Direct Unsubsidized Loan Program Information

Unsubsidized Direct loans are not awarded based on need. The student is responsible for the interest payments from the time the loan is disbursed until it is paid in full. You have the option to pay the interest as you continue to attend school or let the interest accumulate and be added to the principal of your loan. This means that interest will "capitalize" and the total amount you repay will be higher than if you paid the interest all along.

Current Interest Rates

Direct Loan Limits and Academic Year

(An academic year at UT Tyler includes fall, spring and summer terms)

Loan limits

The maximum amount you can borrow each year in Direct Subsidized and Unsubsidized Loans depends on your grade level and on whether you are a dependent student or an independent student. The following table shows the maximum amount of money you may borrow each academic year in Direct Subsidized and Unsubsidized Loans as well as the total or aggregate amount you may borrow:

 

Direct Stafford Loan Limits (Subsidized and Unsubsidized)
	Undergraduate students		Graduate students
	Dependent1	Independent2
Freshman	$5,500 (up to $3,500 in subsidized loan)	$9,500 (up to $3,500 in subsidized loan)	$20,500 unsubsidized ONLY for each year
Sophomore	$6,500 (up to $4,500 in subsidized loan)	$10,500 (up to $4,500 in subsidized loan)
Junior and Senior	$7,500 (up to $5,500 in subsidized loan)	$12,500 (up to $5,500 in subsidized loan)
Aggregate	$31,000 (up to $23,000 in subsidized loans)	$57,500 (up to $23,000 in subsidized loans)	$138,500 (up to $65,500 in subsidized loans)

 

Direct PLUS Loan Program Information

Federal PLUS loans are for parents of dependent undergraduate students and for graduate/professional students. Borrowers can use PLUS loans to help meet the cost of attendance or cover a student’s expected family contribution (This amount is found on the FAFSA results is what the governments expects the parents and student to provide each year toward the student’s education).

Current interest rates

To be eligible for a PLUS Loan offer, the borrower must not have an adverse credit history which will be checked by the Department of Education after the borrower submits the online request from studentaid.gov upon acceptance of the PLUS Loan from the student's myUTTyler:

1. The borrower will login to studentaid.gov with their FSA ID and Password.
2. Borrower must select 'Request a Direct Plus Loan' and follow the instructions to submit the request to the Department of Education.
   • If additional application items are needed, the Department of Education will communicate with you via email.

If the borrower receives an adverse credit decision, he/she may still be eligible to receive a Direct PLUS Loan. To become eligible, the borrower may take one of the following actions:

1. Obtain an endorser and complete PLUS Counseling.
   • An endorser is someone (not the student) who does not have an adverse credit history and agrees to repay the loan if you do not repay it.
   • If you are a parent borrower, the endorser may not be the student on whose behalf you are requesting the Direct PLUS Loan.
2. Document to the satisfaction of the U.S. Department of Education that:
   • The information causing the adverse credit decision is incorrect.

OR

• • There are extenuating circumstances relating to the adverse credit history. (Note: Endorsers aren't eligible for this option.)

AND

• Complete PLUS Counseling.

Dependent students whose parents have applied for but were unable to get a PLUS Loan are eligible to request additional Direct Unsubsidized Loan funds. PLUS Loan Denial-Request Additional Unsubsidized Loan

The interest rate for PLUS Loans is fixed and is charged during all periods, beginning on the date of the loan’s first disbursement. In addition to interest, a loan origination fee (a percentage of the principal amount) is deducted with each disbursement. This fee helps reduce the cost of making low-interest loans.

Prior to PLUS Loan disbursement:

• Student must be enrolled in at least six hours (half-time)
• Credit check must be approved or an approved endorser
• The borrower must complete a Master Promissory Note

 

Helpful Links for Additional Loan Information:

• U.S. Department of Education Direct Loan Website
  • Have questions concerning your borrower information (Entrance Loan Counseling and Master Promissory Note completion, Parent Plus Loan Credit Decision status)? Contact Direct Loans Applicant Services at 1-800-557-7394
• Direct Loan Servicing Online Website
• Direct Loan Consolidation Website
• Direct Loan Exit Loan Counseling – Required for students who graduate, withdraw from institution, or drop below ½ time (6 hrs.)
• Loan Forgiveness, Cancellation, and Discharge Options
• Teacher Loan Forgiveness
• Public Service Loan Forgiveness