An Open Letter to University of Texas at Austin Students...

You may have recently received an e-mail labeled "2012-2013 Student Loans for University of Texas at Austin" or another e-mail labeled "Student Loan Summary." To some students, the e-mails appear to have come from the university. The e-mails also link to websites that claim to list private student loan options for UT Austin. In both of these respects, they are false and misleading.

The e-mails did not come from the university. We believe they originated with private companies that advertise student loans on behalf of for-profit lenders. Furthermore, the lenders listed do not provide the only loan options for UT Austin students.

In reality, UT Austin does not recommend, promote, or endorse any private education lenders or their student loans. Instead, we strongly recommend you complete the Free Application for Federal Student Aid (FAFSA) so we may evaluate your eligibility for federal Pell Grants and Federal Direct Loans. We urge you to exhaust your federal financial aid eligibility before you ever consider private student loans.

If you ever decide to pursue a private student loan, the Office of Student Financial Services will certify your enrollment and cost of attendance as required by the lender. But you need to know that the interest rates, terms, and conditions on private student loans vary greatly.

We recommend you conduct your own, independent research before selecting such a loan. Most of all, you should carefully consider the candor and trustworthiness of the lenders you are considering, and of their business partners — because you will be entering into a business relationship that will affect you for years to come.

Sincerely,

Tom Melecki
Tom Melecki, PhD
Director, Student Financial Services
The University of Texas at Austin