Loans
Student educational loans can be a helpful resource when paying for college. This form of financial aid 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.
You are encouraged to review multiple options and select the loan that best fits your individual circumstance. Learn more about the various types of loans offered below.
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 to be considered for Federal Loans.
New borrowing and repayment policies for federal financial aid will go into effect on July 1, 2026, as outlined in the One Big Beautiful Bill Act. Learn more about these changes on our One Big Beautiful Bill Act webpage and the Federal Student Aid website.
Types of Loans
Subsidized Direct Loans
Subsidized loans are available to undergraduate students with financial need, as determined by your FAFSA. These loans count toward federal annual and lifetime borrowing limits, and do not accrue interest while you are 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 undergraduate and graduate 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 you are enrolled in school or during deferment or grace periods. Unsubsidized loans may represent a larger portion of available federal borrowing for some students, especially at the graduate level. 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 U.S. Department of Education. Interest begins accruing on Parent PLUS loans when the loan is disbursed until it is paid in full. Parent PLUS Loans are subject to annual and aggregate borrowing limits per student, which may affect the total amount a parent is able to borrow, per student, over time.
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.
Graduate PLUS Loans
Graduate PLUS Loans are no longer available for new borrowers due to federal legislative changes outlined in the One Big Beautiful Bill Act (OB3). Details about these changes are available on our One Big Beautiful Bill webpage.
Legacy graduate and professional students may borrow through the Federal Direct Unsubsidized Loan Program, up to established annual and aggregate limits. Students who need funding beyond federal loan limits may need to consider additional financing options to cover remaining educational costs.
Repayment Information
For most federal student loans, repayment begins after a six-month grace period. If you re-enroll at least half-time before the grace period ends, your loans enter deferment. Otherwise, repayment begins.
Beginning July 1, 2026, federal student loan repayment plan options will change under new federal legislation outlined in the One Big Beautiful Bill Act. Most existing repayment plans are being eliminated and replaced with two options:
- Tiered Standard Repayment Plan.
- Repayment Assistance Plan (RAP), an income-based option.
Borrowers who already have federal loans may be able to remain in their current repayment plan for a limited time. However, borrowers currently enrolled in plans such as PAYE, ICR or SAVE will need to select a new repayment plan. Parent PLUS loans are also no longer eligible for income-based repayment.
Your exact repayment date depends on your loan type and your enrollment status. To check your loan status and repayment timeline, follow these steps:
- Log in to StudentAid.gov and select view loan servicer details” from the My Aid section.
- Use the Loan Simulator tool to explore repayment plans and estimate monthly payments.
- Contact your loan servicer to confirm payment due dates and amounts. Then, enroll in their auto-debit program. Borrowers enrolled in auto-debit for Federal Direct Loans receive a 0.25% interest rate reduction.
- Check your email and mail for billing statements and repayment updates from your loan servicer and the U.S. Department of Education.
If you have questions about your federal loans or trouble logging into your account, contact your federal loan servicer directly or call the Federal Student Aid Information Center at 1–800–FED–AID (1–800–433–3243) for assistance.
You may also schedule a free one-on-one financial coaching appointment for budgeting support with Texas One Stop.
State Loans
State loans provide students and families with additional funding options to help cover educational expenses when federal aid and scholarships may not meet the full cost of attendance. These loans, offered through the State of Texas to eligible Texas residents, have specific eligibility requirements, application processes and borrowing limits.
Types of Loans
College Access Loan
The College Access Loan is an educational loan offered to students who are unable to meet the cost of attendance at UT Austin.
Eligibility criteria:
- Be classified by the University as a Texas Resident.
- Be registered for or exempt from Selective Service.
- Receive a favorable credit evaluation or provide a co–signer with good credit standing.
Visit the Texas Higher Education Coordinating Board website to apply for a College Access Loan and review additional information about the program and requirements for eligibility.
*The Texas Higher Education Coordinating Board is required to calculate the final loan amount based on a student’s “manageable debt” for the borrower’s program of study. The loan may be reduced or canceled after the University certifies the loan application.
FORWARD Loan
The Future Occupations & Reskilling Workforce Advancement to Reach Demand (FORWARD) Loan is a low-interest loan offered by the State of Texas to students who are unable to meet the cost of attendance at UT Austin. UT Austin will automatically review certification requests.
Eligibility criteria:
- Be classified by the University as a Texas Resident.
- Be enrolled in a specific program within the fields of Nursing/Patient Care, Teaching, Technology, Transportation/Logistics and Energy, and be able to complete the program within two years or less. Eligibility credentials are reassessed annually. View the list of eligible programs to see if your program is eligible.
- Be registered for or exempt from Selective Service.
- Receive a favorable credit evaluation or provide a co-signer with good credit standing.
Visit the Texas Higher Education Coordinating Board website to apply for a FORWARD Loan and review additional information about the program and requirements for eligibility. UT Austin will automatically review certification requests.
*The Texas Higher Education Coordinating Board is required to calculate the final loan amount based on a student’s “manageable debt” for the borrower’s program of study. The loan may be reduced or canceled after the University certifies the loan application.
Repayment Information
Visit the Texas Higher Education Coordinating Board website to review detailed information about repayment for College Access Loans and FORWARD Loans.
Payment Periods, Right to Cancel Period and Disbursement
When applying for state loans, the application will require a payment period. Use the following ranges that correspond with the requested loan application:
- Fall or spring loan: August-May.
- Fall loan: August-December.
- Spring loan: January-May.
- Summer loan: June-August.
Once the loan has been certified by the University, information is forwarded to the lender and you’ll be sent loan disclosures to sign. Once the final disclosure has been signed, there is a “right to cancel” date where money cannot be sent to the University until the date has passed. You will need to check with your lender for this date. Once this period is over, the lender will send the money to the University and the funds will be applied to any balances on your What I Owe account within 3-5 business days.*
*Funds may first be applied no earlier than 10 days prior to the term start date.
Private Loans
Private loans, also known as alternative loans, are offered by private lenders to help cover education costs that may remain after other financial aid is applied. Because private loans are credit-based, most lenders require a credit check. Interest rates, repayment options and benefits may vary by lender. Before considering a private loan, explore all financial aid options such as grants, scholarships, Work-Study and federal student loans.
Private Lender List and Criteria
If you choose to take out a private loan, start your application as early as possible to prevent any delays, and borrow only what is needed to cover your educational expenses. Funding may take several weeks from application to disbursement. If your plans change, you can request to reduce or cancel your loan before the funds are disbursed.
Lender List and Criteria
To help you compare private loan options and avoid misinformation, the University has created a private lender list. You will see lenders displayed in a neutral, randomized format through an independent comparison tool. Selecting a lender not included on this list will not delay your certification. UT Austin will automatically review certification requests. If you have questions about specific private loans, contact the lender directly.
Lenders included on the list must meet baseline standards at the time of evaluation, such as:
- No fees.
- Competitive interest rates.
- Deferment and forbearance options for financial hardship.
- Dedicated loan servicing and borrower support.
- Electronic application, certification and disbursement processes.
- Compliance with federal lending regulations.
- Participation in the University’s biennial Request for Information (RFI) process.
This list is not comprehensive and is not an endorsement of any lender or a requirement for borrowing.
Payment Periods, Right to Cancel Period and Disbursement
When applying for private loans, the application will require a payment period. Use the following ranges that correspond with the requested loan application:
- Fall and Spring loan: August-May.
- Fall loan: August-December.
- Spring loan: January-May.
- Summer loan: June-August.
Once the loan has been certified by the University, information is forwarded to the lender and you’ll be sent loan disclosures to sign. Once the final disclosure has been signed, there is a “right to cancel” date where money cannot be sent to the University until the date has passed. You will need to check with your lender for this date. Once this period is over, the lender will send the money to the University and the funds will be applied to any balances on your What I Owe account within 3-5 business days.*
*Funds may first be applied no earlier than 10 days prior to the term start date.
Short-Term Institutional Loans
Two types of short-term loans, Emergency Cash Loans and Tuition Loans, are available to students who require immediate financial assistance. To take out one of these short-term loans online, you must have a high-assurance UT EID and password. Additionally, you cannot have any past-due debts with the University. Interest for short-term loans is set at a flat rate of 4%. Interest accrues weekly with bills posted each Saturday.
Types of Loans
Emergency Cash Loans
Emergency cash loans are available to students in need of short-term funding.
Details and requirements:
- You can borrow a maximum of $500 for emergencies.
- You must be registered for the current semester.
- You cannot have an outstanding emergency cash loan or have borrowed one within the past 30 days.
- These loans must be repaid within 30 days.
Visit UT Direct to apply for an Emergency Cash Loan.
Tuition Loans
Tuition loans are available for students needing assistance paying a tuition bill on time.
Details and requirements:
- Texas residents can borrow up to the amount of their current tuition bill.
- Nonresidents and international students can borrow up to $5,000.
- You must be registered for the qualifying number of hours.
- You cannot have an existing unpaid tuition loan.
- All loans are due in 90 days or less, dependent upon when in the semester the loan is taken out.
Visit UT Direct to apply for a tuition loan.
Repayment Information
Your promissory note includes details about your loan type, status, due date and interest rate for paid and unpaid loans serviced by the University. Log into your Loan Summary to view this information along with your repayment terms.
Copies of your promissory notes are available online. You may also request a copy by emailing tuitioncashloan@austin.utexas.edu or calling (512) 475–7725.
- Cash loans are due within 30 days.
- Short-term tuition loans are due without grace within 90 days.
- Statements are sent before and during repayment. Keep your contact information current on the All My Addresses page. Official communication about your institutional loans will be sent to your official UT Austin email address.
Visit the Student Accounts Receivable Institutional Loans page for more information on repayment options and credit reporting.
Loan Disclosures
State Loan Disclosures
- UT 3-year cohort default rate (fiscal year 2022): 0%
- National average cohort default rate (fiscal year 2022): 0%
- Percentage of undergraduate students that borrow loans at UT (2024-25): 36.9%
Private Loan Disclosures
Federal regulations require specific disclosures and borrower protections for private education loans, including:
- A series of required disclosures at application, approval and final certification stages.
- A three-business-day right to cancel after final disclosure.
- A required Private Education Loan Applicant Self-Certification Form, which includes your cost of attendance and financial aid.
These requirements are part of federal consumer protections under the Truth in Lending Act (TILA) and Regulation Z.