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  OSFS Home -> Funding Sources -> Loans -> Loan Programs -> Federal Loans
Federal Loans
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*** 2012-2013 Changes to Federal Financial Aid Programs ***

Skip to section. Perkins Loans

Skip to section. Direct Subsidized and Unsubsidized Loans

Skip to section. Direct Parent PLUS Loans

Skip to section. Direct Graduate PLUS Loans
 
Perkins 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:
  • Graduate,
  • Leave the University, or
  • Drop below half-time enrollment (generally 6 hours).
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.
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Direct Subsidized and Unsubsidized Loans
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:
  • Graduate,
  • Leave the University, or
  • Drop below half-time enrollment (generally 6 hours).
Interest Rate Interest rates for loans disbursed on or after July 1, 2010:
  • Subsidized Direct loans for undergraduate students have a declining fixed interest rate:
    • July 1, 2011-June 30, 2012 - Interest rate is fixed at 3.4%.
    • July 1, 2012-June 30, 2013 - Interest rate is fixed at 3.4%.
    • 6.8% fixed for loans disbursed July 1, 2006-June 30, 2008.
  • ALL Unsubsidized Direct loans for undergraduate, graduate and professional students:
    • Interest rate is fixed at 6.8%.
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.
***Graduate and Professional Students are no longer eligible to receive Federal Direct Subsidized Loans.
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)
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Direct Parent PLUS Loans
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
  • Repayment begins within 60 days after the loan is fully disbursed.
  • For loans disbursed on or after July 1, 2008, the borrower has the option of deferring repayment until six months after the dependent student ceases to be enrolled at least half time (generally 6 hours).
  • Interest is capitalized upon entering 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.
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Direct Graduate PLUS Loans
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
  • Repayment begins within 60 days after the loan is fully disbursed. There is no grace period for Direct PLUS Loans.
  • While you are enrolled in school on at least a half-time basis, you are eligible for an in-school deferment that allows you to postpone payments on your Direct PLUS Loan until you graduate or drop below half-time (generally 6 hours).
  • Interest will continue to accrue while you are in deferment.
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.
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