Student Loans
Student loans are a type of financial aid that you must repay with interest. Although they are not free, they are still a good option for students who need additional help paying for school, and they have fixed interest rates that are lower than those of private loans and credit cards. Payments are not due until six months after you graduate or stop attending at least half-time. The six months are known as a grace period.
What are the different types of educational loans?
There are different types of loans that you may qualify for:
- Federal Direct Subsidized Loans, available to undergraduate students who demonstrate financial need. The government pays for your interest while you are in school at least half-time, during the grace period, and during any authorized deferment.
- Federal Direct Unsubsidized Loans, available to graduate and undergraduate students regardless of financial need. The student is responsible for the interest from the moment the loan is received.
- Federal Direct Parent PLUS Loans, available to the parents of dependent students. These loans require a credit check.
- Federal Direct Graduate PLUS Loans, available to graduate students. These loans require a credit check.
- State College Access Loans (CAL), available to graduate and undergraduate students who are Texas residents. These loans require a credit check.
Students who don’t qualify for these loans can explore the option of a private educational loan. These are loans offered by private lenders (banks) that may be offered with higher interest rates and different repayment options.
If you qualify for federal student loans, they will be offered to you as part of your financial aid awards. You have the option of accepting some or all of the amount offered; if you accept a loan, you will also need to complete a master promissory note and an entrance counseling, both at studentaid.gov. The latest you can accept a loan is two weeks before the last day of finals each semester.
The amount of student loans you qualify for depends on your grade level, dependency status, and other factors. There are also yearly and aggregate loan limits to the amounts you can borrow. If you are in your final semester and have fewer than twelve credits left to graduate, your loans may need to be reduced.
Here are the current loan limits by academic level and year. The amount of subsidized loan will depend on your financial need, and the rest will be unsubsidized, up to the total amount.
| Level | Year |
Most dependent students (except those whose parents are unable to borrow a PLUS loan) |
Independent students (and dependents whose parents can't borrow a PLUS loan) |
|---|---|---|---|
| Undergraduate | First year | Total $5,500, up to $3,500 subsidized | Total $9,500, up to $3,500 subsidized |
| Second year | Total $6,500, up to $4,500 subsidized | Total $10,500, up to $3,500 subsidized | |
| Third year and beyond | Total $7,500, up to $5,500 subsidized | Total $12,500, up to $5,500 subsidized | |
| Graduate and professional | N/A (graduate students are always independent) | $20,500 (unsubsidized only) | |
The total aggregate loan limit a student can borrow in each category is:
- For dependent students: total $31,000, up to $23,000 subsidized.
- For independent undergraduate students: total $57,500, up to $23,000 subsidized.
- For graduate students (including undergraduate loans): total $138,500, up to $65,000 subsidized.
What happens after I graduate or stop attending?
If you received a federal student loan and are graduating, withdrawing, or dropping below half-time, you should complete an exit counseling at studentaid.gov. Your six-month grace period will begin, at the end of which you will need to begin making payments.
Responsible borrowing can be considered a good financial decision and an investment in your future. Some students are concerned about student loan debt, because they worry about being unable to afford the monthly payments and falling into default or impacting their credit score. UTEP has taken steps to reduce the need to borrow for more students, and to make it safer to do so:
- Our cost is much more accessible than most public and private universities.
- Our grant and scholarship programs cover more of the cost for more students, who would otherwise need to borrow.
- Among the top 500 colleges and universities in the United States, UTEP is the Texas university with the lowest average student debt, and more than half of our students graduate without any student loan debt.
- For students looking for a self-help option, part-time jobs on-campus are available with a competitive pay rate of $10/hour and flexibility around your schedule.
- The best way to prevent student loan debt is to graduate with a degree that provides real opportunities for social mobility and better jobs. UTEP is a top school for social mobility, and even before the pause on student loan payments, had less than a 3% default rate.
If you have questions about student loan debt, email studentloans@utep.edu to consult with a Student Loan Debt Specialist who will be happy to answer your questions.
Book Loans and Tuition Loans
If you need short-term help to pay for books or tuition, you may want to consider applying for:
- A book loan that you can borrow at the start of the semester and puts money in your Miner Gold Card to be used exclusively at the UTEP Bookstore.
- A tuition loan that helps you defer the first payment of a monthly installment payment plan.
To review terms and conditions and submit your request, visit loans.utep.edu.
Emergency Loans
For unexpected situations such as car repairs, daycare expenses, or loss of a job (but not tuition, see previous point for that), you can request a short-term emergency loan of up to $500.
These short-term loans must be paid in full within 90 days. To receive one of these loans, you must be enrolled at least half-time in the current semester and have no pending balance, be at least 18 years of age, be in good academic standing, and not have any pending disciplinary matters with the Office of Student Conduct.
To request an emergency loan, please email studentloans@utep.edu.
