Federal Loans
*** 2012-2013 Changes to Federal Financial Aid Programs ***
Perkins Loans
Direct Subsidized and Unsubsidized Loans
Direct Parent PLUS Loans
Direct Graduate PLUS Loans
Perkins Loans
Direct Subsidized and Unsubsidized Loans
Direct Parent PLUS Loans
Direct Graduate PLUS Loans
The Federal Perkins loan program is a very small federal loan program. UT Austin
is the lender. You must have very high financial aid eligibility to be considered
for a Perkins loan.
| Repayment |
Begins 9 months after you:
|
|---|---|
| Interest Rate | 5% fixed. |
| Interest Subsidy | The federal government pays the interest that accrues until you begin repayment. |
| Fees | None. |
| Completion Requirements | First-time Perkins loan borrowers at UT Austin must: |
| Credit Worthiness | No collateral, credit check, cosigner, or endorser required. |
| Perkins Loan Debt | Information available from: Perkins Loan Services |
| Annual Loan Limit |
Undergraduates: $4,000
Graduates: Generally not awarded this loan. |
| Aggregate Limit |
Undergraduates:
$11,000 for students with less than or equal to 60 hours of coursework completed. $27,500 for students with more than 60 hours of coursework completed. |
Although the Office of Student Financial Services awards Perkins loans at UT Austin,
the Student Accounts Receivable office is responsible for servicing and repayment
on these loans. More information is available from Perkins Loan Services.
Federal Direct Loans are low-interest student loans available to undergraduate and
graduate students who are enrolled at least half-time. Interest may be subsidized
or unsubsidized. When you complete the FAFSA, you will automatically be considered
for a Direct Loan at UT Austin.
Comparing Subsidized and Unsubsidized Direct Loans
You must demonstrate
financial need to be awarded a subsidized Direct loan. An unsubsidized Direct
loan does not require financial need to be awarded.
| Repayment |
Begins 6 months after you:
| ||
|---|---|---|---|
| Interest Rate |
Interest rates for loans disbursed on or after July 1, 2010:
| ||
| Interest Subsidy |
Subsidized Direct:
The federal government pays the interest that accrues until you enter repayment. Unsubsidized Direct: You are responsible for interest that accrues from the date the loan is disbursed (released). You may defer payment of this interest until you enter repayment. Interest continues to accrue and is capitalized when you enter repayment. | ||
| Fee | 1% is deducted from the DL Subsidized and DL Unsubsidized loan proceeds by the Federal Government. | ||
| Completion Requirements | First-time Direct loan borrowers at UT Austin must: | ||
| Credit Worthiness | No collateral, credit check, cosigner, or endorser required. | ||
| Direct Loan Debt | Information available from: National Student Loan Data System | ||
| Annual Loan Limit* | Subsidized and/or Unsubsidized | Additional Unsubsidized | |
| Dependent Undergraduates** | |||
| 1st year: | $5,500 (no more than $3,500 may be subsidized) | N/A | |
| 2nd year: | $6,500 (no more than $4,500 may be subsidized) | N/A | |
| Remaining years: | $7,500 (no more than $5,500 may be subsidized) | N/A | |
| Dependent Undergraduates**
whose parent is not eligible to borrow a Direct Parent PLUS Loan | |||
| 1st year: | $5,500 (no more than $3,500 may be subsidized) | $4,000 | |
| 2nd year: | $6,500 (no more than $4,500 may be subsidized) | $4,000 | |
| Remaining years: | $7,500 (no more than $5,500 may be subsidized) | $5,000 | |
| Independent Undergraduates** | |||
| 1st year: | $5,500 (no more than $3,500 may be subsidized) | $4,000 | |
| 2nd year: | $6,500 (no more than $4,500 may be subsidized) | $4,000 | |
| Remaining years: | $7,500 (no more than $5,500 may be subsidized) | $5,000 | |
| Graduate and Professional Students*** | |||
| Per year: | $0 | $20,500 | |
*Annual loan limits cannot exceed the Cost of
Attendance minus other financial aid.
**All annual loan limits for undergraduates are
subject to proration during the student’s last semester before graduation.
In addition to annual loan limits, the Direct Loan program has aggregate
or lifetime limits.
| Aggregate Limits | Subsidized and/or Unsubsidized | |
|---|---|---|
| Dependent Undergraduates | $31,000 (no more than $23,000 may be subsidized) | |
| Dependent Undergraduates
whose parent is not eligible to borrow a Direct Parent PLUS Loan AND Independent Undergraduates | $57,500 (no more than $23,000 may be subsidized) | |
| Graduate and Professional Students | $138,500 (no more than $65,500 may be subsidized) |
The Direct Parent PLUS loan is a federal loan that allows a parent to borrow
funds to help meet your educational expenses. The Direct Parent PLUS loan is
part of the William D. Ford Federal Direct Loan Program.
- Like Direct Subsidized and Direct Unsubsidized loans, the Federal Government supplies the funds.
- Unlike Direct Subsidized and Unsubsidized loans, your Direct Parent PLUS loan eligibility is based on your parent’s or an endorser's credit.
| Repayment |
|
|---|---|
| Interest Rate | 7.9% fixed. |
| Interest Subsidy | The borrower (your parent) is responsible for interest that accrues from the date of disbursement. |
| Fee | The U.S. Department of Education charges a loan fee of 4% of the principal amount of each Direct PLUS Loan. This fee is deducted proportionately from each disbursement of your loan. |
| Completion Requirements | To receive a Parent PLUS loan: |
| Credit Worthiness | The borrower or endorser must not have an adverse credit history (a credit check will be done). |
| Annual Loan Limit | Up to the Cost of Attendance, minus other financial aid and resources. |
The Direct Graduate PLUS loan is a federal loan that allows a graduate student to
borrow funds to help meet educational expenses. The Direct Graduate PLUS loan is
part of the William D. Ford Federal Direct Loan Program.
- Like Direct Subsidized and Unsubsidized loans, the Federal Government supplies the funds.
- Unlike Direct Subsidized and Unsubsidized loans, your Direct Graduate PLUS loan eligibility is based on your (the student borrower's) or an endorser's credit.
Note: In order to be eligible for the Direct Graduate PLUS loan, you should have
already accepted any Direct Subsidized and Unsubsidized loans offered to you for
the year. The Direct Subsidized and Unsubsidized loans offer a better interest
rate and repayment provisions.
| Repayment |
|
|---|---|
| Interest Rate | 7.9% fixed. |
| Interest Subsidy | This loan is unsubsidized. The borrower is responsible for all interest that accrues. Interest will be capitalized. |
| Fee | The U.S. Department of Education charges a loan fee of 4% of the principal amount of each Direct PLUS Loan. This fee is deducted proportionately from each loan disbursement. |
| Grace Period | None. |
| Completion Requirements | Graduate PLUS loan borrowers must: |
| Credit Worthiness | The borrower or endorser must not have an adverse credit history (a credit check will be done). |
| Annual Loan Limit | Up to the Cost of Attendance, minus other financial aid and resources. |

