Loans are money that you or your parents borrow and repay with interest. Education loans are offered at low-interest rates and have long repayment terms. Some loans require a demonstration of need, others do not. The interest rate varies each year and it is determined by the federal government every July 1st. The Office of Student Financial Aid expresses a philosophy of careful student loan borrowing by informing students that he/she has options in regards to paying their college expenses. If a student accepts a partial amount of their Federal Direct Subsidized Loan or Federal Direct Unsubsidized Loan, the student can request one adjustment per semester within the first 90 days of the semester.
Please note that the processing and disbursing of student loans ends two weeks before the last day of finals week each semester. For the summer term, processing and disbursing of student loans will stop two weeks prior to the end of Summer II.
The Federal Direct Subsidized Loan is a loan from the U.S. Department of Education made on the basis of the student's financial need and other specific eligibility requirements. The Federal government does not charge interest on these loans while the borrower is enrolled at least half-time, during a six-month grace period, or during authorized periods of deferment.
The Federal Direct Subsidized Loan is available to undergraduate students who demonstrate financial need and are enrolled for 6 semester credit hours or more. This loan is deferred (payment not required) as long as the student is enrolled for 6 semester credit hours or more. The interest on the loan is paid by the United States Government during deferment. This interest rate is variable and determined by the federal government every July 1st. Amounts shown are based on full-time enrollment and may be reduced if a student is enrolled less than full-time. If a Federal Direct Subsidized Loan eligible student chooses to borrow a student loan, the U.S. Department of Education requires the full amount of the Federal Direct Subsidized Loan be borrowed before any portion of the Federal Direct Unsubsidized Loan be borrowed.
The Federal Direct Unsubsidized Loan is a loan from the U.S. Department of Education made on the basis of specific eligibility requirements. Interest is charged throughout the life of the loan. The borrower may choose to pay the interest charged on the loan or allow the interest to be capitalized (added to the loan principal) when the loan enters repayment.
The Federal Direct Unsubsidized Loan is available to undergraduate and graduate students who show half-time enrollment or more. This loan is deferred (payment is not required) as long as the student shows half-time enrollment or more. The interest on this loan accrues (accumulates) and is capitalized (added to principle). The interest rate is variable and determined by the federal government every July 1st.
Dependent students can only borrow $2,000 of this loan, only after they have taken the maximum amount of their Federal Direct Subsidized Loan.
|Dependent Students (except students whose parents are unable to obtain PLUS Loans)||Independent Students (and dependent undergraduate students whose parents are unable to obtain PLUS Loans)|
|First-Year Undergraduate Annual Loan Limit||$5,500 - No more than $3,500 of this amount may be in subsidized loans.||$9,500 - No more than $3,500 of this amount may be in subsidized loans.|
|Second-Year Undergraduate Annual Loan Limit||$6,500 - No more than $4,500 of this amount may be in subsidized loans.||$10,500 - No more than $4,500 of this amount may be in subsidized loans.|
|Third-Year and Beyond Undergraduate Annual Loan Limit||$7,500 - No more than $5,500 of this amount may be in subsidized loans.||$12,500 - No more than $5,500 of this amount may be in subsidized loans.|
|Graduate or Professional Students Annual Loan Limit||Not Applicable (all graduate and professional students are considered independent)||$20,500 (unsubsidized only)|
|Subsidized and Unsubsidized Aggregate Loan Limit||$31,000 - No more than $23,000 of this amount may be in subsidized loans.||
$57,500 for undergraduate - No more than $23,000 of this amount may be in subsidized loans.
$138,500 for graduate or professional students - No more than $65,000 of this amount may be in subsidized loans. The graduate aggregate limit includes all federal loans received for undergraduate study.
Available to dependent student’s parent(s) and graduate students who do not have an adverse credit history. Students must show half-time enrollment in order to receive a PLUS Loan. Graduate students enrolled half time will have their PLUS loan put on deferment (payment not required).
A parent who has borrowed on behalf of their student will be required to make payments to the PLUS loan once the loan is fully disbursed (paid out), unless, the parent chose to request a deferment during the loan request process and the deferment was approved.
Amounts for the PLUS loan are based on individual student’s eligibility.
Available to undergraduate and graduate students. Student must be a Texas resident and not have an adverse credit history. Students must show half time enrollment to receive the CAL. The loan is deferred (payment not required) while the student is enrolled half time. The interest rate is 3.75% and is not capitalized.
Most degree-seeking students enrolled at least half time are eligible for the Federal Direct Student Loan(s). But, when financial aid and Federal Student loans don't cover the cost of education, credit-based loans may be a good option. Parents of dependent undergraduate students and graduate/professional students can borrow from the Federal PLUS Loan program if there is no adverse credit. Private credit-based loans are also available and may align favorably with your needs and preferences. Terms and conditions vary by lender.
- UTEP strongly encourages students to borrow the available maximum federal student loan amounts before requesting any private education loans.
- Please note that UTEP is not affiliated with any private student loan lenders.
- Using this system offered by a third party, provides a list of private student loan lenders without prejudice for the purpose of assisting students and does not endorse, promote or recommend any one lender over another.
- The listed lenders are those that have established a lending history with the students attending UTEP during the past 3 years.
- Lenders do not pay a fee to be included on this list.
- Students are not obligated to borrow only from the lenders that are listed and; therefore, may choose any private education loan lender.
- The cost of attendance limits what a student can borrow in a private education loan.
Per federal regulation, UTEP is required to prorate a dependent or independent undergraduate student's annual Stafford loan limits when they are in their final semester. This mostly will affect students who will graduate at the end of the fall semester. The Office of Student Financial Aid will certify your loan with this calculation in conjunction with other variables that can affect loan amounts such as aggregate loan limits.
If you fail to notify the financial aid office of your upcoming graduation prior to the disbursement of your loans, the financial aid office will receive an official graduation list from the registrar's office and your loans may be adjusted which could result in a bill with the university.
I've accepted my first federal direct student loan, what do I do now?
If you have not previously received a Direct Loan or Federal Family Education Loan (FFEL), the Federal Government requires you to complete entrance counseling to ensure that you understand the responsibilities and obligations you are assuming.
If you are completing entrance counseling to borrow a loan as an undergraduate student, then the entrance counseling will fulfill counseling requirements for Direct Subsidized Loans and Direct Unsubsidized Loans.
If you are completing entrance counseling to borrow a loan as a graduate or professional student, the entrance counseling will fulfill counseling requirements for Direct Unsubsidized Loans and Direct PLUS Loans.
Master Promissory Note
The Subsidized/Unsubsidized Master Promissory Note (MPN) is a legal document in which you promise to repay your federal student loan(s) and any accrued interest and fees to your lender or loan holder. There is one MPN for Direct Subsidized/Unsubsidized Loans and a different MPN for Direct PLUS Loans. Most schools are authorized to make multiple federal student loans under one MPN for up to 10 years.
I'm graduating/leaving UTEP, what happens next?
Exit counseling provides important information to prepare you to repay your federal student loan(s). If you have received a subsidized, unsubsidized or PLUS loan under the Direct Loan Program or the FFEL Program, you must complete exit counseling each time you: Drop below half-time enrollment, Graduate, or leave school. Your exit counseling will inform you on repayment.
Federal School Code: 003661