Federal Loans
The Federal Stafford Loan program is the largest federal student loan program.
Stafford Loans are low-interest student loans available to undergraduate and
graduate students who are enrolled at least half-time. Interest on Stafford
Loans may be subsidized or unsubsidized. When you complete the FAFSA, you will
automatically be considered for a Stafford Loan at UT Austin.
UT Austin participates in the Federal Family Education Loan Program (FFELP) which
means that you must choose a lender
to provide the funds for your Stafford Loan. For more information see "Completion
Requirements" in the table below.
Comparing Subsidized and Unsubsidized Stafford Loans
Stafford Loans come in two varieties: subsidized and unsubsidized.
You must demonstrate
financial need to be awarded a subsidized Stafford. An unsubsidized Stafford
does not require financial need to be awarded.
| Repayment |
Begins 6 months after you:
| ||
| Interest Rate |
6.8%* fixed for loans disbursed on or after July 1, 2006.
*6.0% fixed for loans disbursed on or after July 1, 2008 for subsidized Stafford Loans to undergraduates. | ||
| Interest Subsidy |
Subsidized Stafford:
The federal government pays the interest that accrues until you enter repayment. Unsubsidized Stafford: You are responsible for interest that accrues from the date your lender disburses (releases) the loan. You may defer payment of this interest until you enter repayment. Interest is capitalized when you enter repayment. | ||
| Fees |
Origination Fee: Up to 1%**;
Default Fee: 1%**
**This fee is sometimes waived by the lender and/or guarantor. | ||
| Completion Requirements | First-time Stafford loan borrowers at UT-Austin must: | ||
| Credit Worthiness | No collateral, credit check, cosigner, or endorser required. | ||
| Stafford Loan Debt | Information available from: National Student Loan Data System | ||
| Annual Loan Limit | Subsidized and/or Unsubsidized
(The undergraduate amounts below are available after July 1, 2008.) | 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 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: | $8,500 | $12,000 | |
***All annual loan limits for undergraduates are
subject to proration and cannot exceed the Cost of Attendance.
In addition to annual loan limits, the Stafford 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 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 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: $20,000 |
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.
The Parent PLUS loan is a federal loan that allows a parent to borrow funds to
help meet your educational expenses. The Parent PLUS loan is part of the Federal
Family Educational Loan Program (FFELP).
- Like the Stafford loan, parents must choose a lender to supply the funds for the Parent PLUS loan. For more information, see "Completion Requirements" in the table below.
- Unlike the Stafford loan, the Parent PLUS loan eligibility is based on the borrower’s credit worthiness.
| Repayment | Begins when the loan is fully disbursed. (The first payment is generally due within 60 days of the final disbursement.) |
| Interest Rate | 8.5% fixed for loans disbursed after July 1, 2006. |
| Interest Subsidy | The borrower (your parent) is responsible for interest that accrues from the date of disbursement. |
| Fees |
Origination Fee: Up to 3%;
Default Fee: 1%*
*This fee is often waived by the guarantor. |
| Completion Requirements | To receive a Parent PLUS loan: |
| Credit Worthiness | The borrower (your parent) cannot be 90 days or more delinquent on the repayment of any debt. (Individual lender standards may be stricter.) |
| Annual Loan Limit | Up to the Cost of Attendance, minus other financial aid and resources. |
The Graduate PLUS loan is a federal loan that allows you (a graduate student)
to borrow funds to help meet your educational expenses. The Graduate PLUS loan
is part of the Federal Family Educational Loan Program (FFELP).
- Like Stafford loans, you must choose a lender to supply the funds for the Graduate PLUS loan.
- Unlike Stafford loans, your 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 Graduate PLUS loan, you should have already
accepted Stafford loans offered to you for the year. The Stafford loan offers a
better interest rate and repayment provisions.
| Repayment |
Begins immediately after you:
|
| Interest Rate | 8.5% fixed. |
| Interest Subsidy | This loan is unsubsidized. The borrower is responsible for all interest that accrues. Interest can be capitalized. |
| Fees |
Origination Fee: Up to 3%;
Default Fee: 1%*
*This fee is often waived by the guarantor. |
| Grace Period | None. |
| Completion Requirements | Graduate PLUS loan borrowers must: |
| Credit Worthiness | The borrower or endorser cannot be 90 days or more delinquent on the repayment of any debt. (Individual lender standards may be stricter.) |
| Annual Loan Limit | Up to the Cost of Attendance, minus other financial aid and resources. |