Loans
Student loans can be a helpful resource when paying for college. Loans are a form of financial aid that must be repaid, usually with interest, after you graduate or are no longer enrolled in college. The amount of money you can borrow depends on several factors, including your year in school, dependency status, and financial need. Loans are offered by the federal and state governments, as well as private lenders and by the University.
Federal Loans
The U.S. Department of Education offers loans directly to eligible students earning their degree and to parents of dependent undergraduate students. Students must complete their FAFSA in order to be considered for Federal Loans.
Subsidized Direct Loans
Subsidized loans are available to undergraduate students with financial need, as determined by a student’s FAFSA. These loans do not accrue interest while a student is enrolled in at least half-time hours or during periods of deferment. Visit Studentaid.gov for the current interest rate for subsidized direct loans.
Unsubsidized Direct Loans
Unsubsidized loans are available to both graduate and undergraduate students and are not based on financial need. Unlike subsidized loans, interest begins accruing on unsubsidized loans from the time the loan is disbursed until it is paid in full, including when students are enrolled in school or during deferment or grace periods. Visit Studentaid.gov for the current interest rate for unsubsidized direct loans.
Parent PLUS Loans
Parent PLUS Loans are available to parents of undergraduate students. These loans are subject to the borrower’s credit being approved by the Department of Education. Interest begins accruing on Parent PLUS loans when the loan is disbursed until it is paid in full. Visit Studentaid.gov for the current interest rate for Parent PLUS loans. Parents must complete the online Parent PLUS Loan Application in order to receive this type of loan.
Follow the steps in the videos through Summer 2024.
Graduate PLUS Loans
Graduate PLUS Loans are available to graduate and professional students and are intended to supplement unsubsidized loans. Grad PLUS loans are subject to the borrower’s credit being approved by the Department of Education. Interest begins accruing on Grad PLUS loans when the loan is disbursed until it is paid in full. Visit Studentaid.gov for the current interest rate for Graduate PLUS loans. Students must complete the online Graduate PLUS Loan Application in order to receive this loan.
State Loans
College Access Loans
College Access Loans are educational loans offered by the State of Texas to students classified by the University as Texas Residents. .To be eligible for a College Access Loan, students must be registered for or exempt from Selective Service and must receive a favorable credit evaluation or provide a co–signer with good credit standing. Learn more about the additional eligibility requirements, interest rates, repayment information. Students can apply for a College Access Loan here.
You will need to complete a College Access Loan Request Form.
FORWARD Loans
Future Occupations & Reskilling Workforce Advancement to Reach Demand (FORWARD) Loans are educational loans offered by the State of Texas to students classified by the University as Texas Residents. The FORWARD Loan Program is a low-interest loan designed for students enrolled in programs aligned with high value credentials and high demand occupations. This program is limited to students enrolled in specific programs within the fields of Nursing/Patient Care, Teaching, Technology, Transportation/Logistics, and Energy. Visit the list of eligible programs see if your program is eligible. Eligible credentials are reassessed annually. To qualify, you must also be able to complete this program within two years or less. To be eligible for a College Access Loan, students must be registered for or exempt from Selective Service and must receive a favorable credit evaluation or provide a co-signer with good credit standing. Students can review additional eligibility requirements, interest rates, repayment information, and more. Students will need to complete the FORWARD Loan form.
Private Alternative Loans
Private Alternative Loans are available to students who are not eligible for federal or state financial aid or who need additional funds to help meet their educational expenses. These loans can be expensive and should only be utilized when you have exhausted your federal and state aid options. All private loans require credit checks, and most loans will require a co-signer if the borrower has little or no credit history.
The Office of Scholarships and Financial Aid cannot recommend a lender. If you have any questions about specific private loans, please contact the lender.
Things to consider before deciding on a Private Alternative Loan:
- What is the interest rate? Is it fixed or variable?
- How is the interest rate calculated and capitalized?
- What fees are applied?
- Can principal and interest be deferred?
- When does repayment begin?
We encourage students to consider all financial options before applying for a private loan. Whenever possible, borrow only what is needed to pay for educational expenses and remember, you can always refuse awarded loan or request a lower amount.
Short-Term Loans
Two types of short-term loans,Emergency Cash Loans and Tuition Loans, are available to students who require immediate financial assistance. Students may access the applications for Tuition Loans and Emergency Cash Loans through UT Direct.
Emergency Cash Loans
Students can borrow a maximum of $500 for emergencies. These loans must be repaid within 30 days.
Requirements:
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- Misuse of university accounting services such as bouncing checks or excessive borrowing of emergency cash loans can result in an administrative block on your future access to the system.
- High-assurance UT EID and password.
- Minimum half-time enrollment.
- Borrowing is limited to $500.
- All university debts are current and not past due.
- No emergency cash loan currently unpaid or borrowed within the past 30 days.
- All loans are required to be repaid within 30 days. Contact Student Accounts Receivable for other terms and conditions regarding repayment, interest rate, and late penalties.
- Misuse of university accounting services such as bouncing checks or excessive borrowing of emergency cash loans can result in an administrative block on your future access to the system.
To apply for an Emergency Cash Loan, visit UT Direct.
Tuition Loans
If you need assistance paying your Tuition Bill on time, Tuition Loans are an available option to consider.
Requirements:
- High-assurance UT EID and password.
- Minimum half-time enrollment.
- Borrowing is limited to the current tuition bill. Nonresidents may borrow up to $5,000.
- All university debts are current and not past due.
- No unpaid tuition loan.
- All loans are due in 30-90 days; Contact Student Accounts Receivable for other terms and conditions regarding repayment, interest rate, and late penalties.
You may apply for a tuition loan through UT Direct. Payments for tuition loans may be made on the Tuition Loan website, at the Cashier’s Office or by mailing payment to Student Accounts Receivable, P.O. Box 7398, Austin, TX 78713-7398.
Loan Disclosures
- UT cohort default rate (fiscal year 2019): 0.8%
- National average cohort default rate (fiscal year 2019): 2.3%
- Percentage of undergraduate students that borrow loans at UT (Fall 2020): 30.6%