Return To Loan Repayment

Student loan repayments that were paused as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act in March 2020 are set to return to repayment after December 31, 2022. On this page, you’ll find more information about the impact on federal and institutional (UT) loans as well as how borrowers can prepare for return to payment.

Federal Loans

On August 24, 2022, the U.S. Department of Education extended the 0% student loan interest rate and payment pause on federal student loans through December 31, 2022.

Federal Loans Impacted

The pause included the following relief measures for eligible loans:

  • A suspension of loan payments
  • A 0% interest rate
  • Stopped collections on defaulted loans

Eligible Loans under the COVID19 Loan Payment Pause and 0% Interest

  • Direct Loans (defaulted and nondefaulted)
  • Federal Family Education Loan (FFEL) Program loans held by ED (defaulted and nondefaulted)
  • Federal Perkins Loans held by ED (defaulted and nondefaulted)
  • Defaulted FFEL Program loans not held by ED
  • Defaulted HEAL loans

*Federal Loans held and serviced by UT Austin are exempt from the CARES Act and continue to remain in repayment.

Additional Information about the COVID19 Loan Repayment Pause and 0% Interest can be found here.

Federal Direct Loans including Subsidized, Unsubsidized, Parent PLUS and Graduate Plus

  • If your student loans are currently in deferment, interest will resume on any Unsubsidized, Parent PLUS or Graduate PLUS student loan.

How to Prepare for Repayment

Borrowers can prepare to return to repayment by completing the following steps:

Step 1:

Log in to their loan servicer’s website or mobile app to make sure their contact information is current. To find out who their loan servicer is, borrowers should visit their account dashboard—by logging in to StudentAid.gov/login—find the “My Aid” section, and select “View loan servicer details,” or call the Federal Student Aid Information Center (FSAIC) at 1-800-4-FED-AID (1-800-433-3243).

Step 2:

Use the Loan Simulator tool at StudentAid.gov/loan-simulator to make sure they’re on the best repayment plan, especially if their financial situation has changed during the COVID-19 emergency.

Step 3:

Contact their loan servicer to restart auto-debit, sign up for auto-debit for the first time, or understand the easiest options to make a payment. Direct Loan borrowers enrolled in auto-debit receive a 0.25% interest rate deduction on their loans.

Step 4:

Check their email and postal mail for student loan payment updates—including their monthly payment amount and due date—from their loan servicer and the U.S. Department of Education office of Federal Student Aid.

Frequently Asked Questions

How do I know if my loans will go into repayment?

Visit your dashboard on studentaid.gov.

Find the “My Aid” section.

Select “View loan servicer details”.

Contact your servicer.

Who do I contact for information on my student loans?

Contact your servicer.

Visit your dashboard on studentaid.gov.

Find the “MyAid” section.

Select “View loan servicer details”.

I am having trouble logging into my dashboard on the Federal Student Aid website. How do I get help?

If you can’t log in, call Federal Student Aid at 1800FEDAID (18004333243) for assistance or loan servicer information.

How do I find out what my interest rate will be after the 0% interest rate ends?

For many borrowers, your interest rate will be the same as it was before the 0% interest began. But some borrowers will find their interest rate has changed. For example, your interest may have changed if you consolidated your loans during the payment pause.

Contact your loan servicer for your exact interest rate. You may also be able to log in to your loan servicer’s site to find this information.

I’m not sure if I can afford my monthly payment, is there anyone that I can speak with?

You may be able to lower your monthly student loan payment by enrolling in an incomedriven repayment (IDR) plan. Under an IDR plan, payments are based on your income and family size.

Contact Texas Financial Wellness to schedule a 1:1 Personal Counseling appointment. They can assist you with budgeting your student loan payments.

State Loans –

The interest waiver and other student loan provisions recently passed by Congress only applies to federally held student loans. Loans held and serviced by the Texas Higher Education Coordinating Board are not included in those student loan provisions.

Institutional Loans

In accordance with the U.S. Department of Education’s announcement to extend the pause on student loan repayment, interest, and collections through December 31, 2022, the University of Texas at Austin agreed to extend its pause of weekly interest billing through December 31, 2022, effective only for shortterm institutional tuition and cash loans awarded after March 2020.

The repayment and collections of shortterm loans and longterm institutional loans were not affected. The pause of weekly interest billing, repayment, and collections for longterm loans was also not affected.

Interest will begin accruing for shortterm institutional loans awarded after March 2020 on January 1, 2023, with first billing on January 3, 2023, for any unpaid balance.

Frequently Asked Questions

What is an institutional loan?

An institutional loan is a form of financial aid contributed by donors and funded through the University to help students in immediate need to pay for education costs. There are two types of shortterm loans; emergency cash loans and tuition loans. Shortterm loans are considered “demand” loans due in full by their due date without grace.

Longterm institution loans are offered either directly through your school or department, or the Financial Aid Office depending on the fund type.

How do I know if my loan is in repayment?

The repayment of your institutional loan is governed by the terms of your promissory note. Shortterm tuition loans are due without grace within 90 days or less from the award date; cash loans are due within 30 days. The repayment period for a longterm institutional loan may not exceed 10 years.

Emailed and or mailed statements are sent before and during repayment. Check these statements regularly and ensure that your mailing and email addresses are updated on the All My Addresses page. View The University Electronic Mail Student Notification Policy for information about university communications.

How do I find details about my Institutional Loan?

You may view your Loan Summary page for loan details like loan type, status, due date, interest date, and more for paid and unpaid loans serviced directly by the university through UT Direct.

A copy of your esigned promissory notes is available to view and print online; a copy of your handsigned promissory notes (signed at the Cashier’s/Bursar Office) may be requested by emailing tuitioncashloan@austin.utexas.edu or calling (512) 4757725.

Does my loan accrue interest?

Yes. Interest is the rate charged on the amount borrowed. If you were awarded a short-term loan after March 2020 that is not paid in full by December 31, 2022, it will accrue interest beginning January 1, 2022, until the balance is paid in full. If your short-term loan was awarded before March 2020, your loan was billed interest. Interest is billed weekly (each Saturday). Interest is deferred only for short-term loans when assigned for collection.

What is my interest rate?

The current interest rate for shortterm institutional loans is 4% APR. The interest rate for longterm institutional loans varies depending on the fund.

How do you calculate simple interest?

Weekly Interest (Principal x Interest Rate)/52 weeks ($2,307 x 0.04)/52=$1.77; approximately $0.25 a day.

Are institutional loans reported to credit?

The University of Texas at Austin is required to report all institutional loans, as applicable, fairly and accurately for all students.

Shortterm tuition loans are reported to the national credit bureaus from the date of their award until paid in full; negatively if more than 30 days past due. Cash loans are only reported to credit if assigned for collection after 90 days past due.

The university does not offer a “goodwill” credit retraction for late payment. As a courtesy to our students, we will report the loan no more than four months past due with a signed repayment agreement in good standing.

If you believe your account was reported in error, you may file a dispute with one or all of the national credit bureaus, i.e., Experian, Equifax, and Transunion. If you have questions about credit reporting, please contact Institutional loans by emailing tuitioncashloan@austin.utexas.edu or calling (512) 4757725 for assistance.

What is a collection assignment?

Collection assignment occurs after 90 days past due without satisfactory repayment arrangements. Assigned collection accounts currently incur a 25% collection fee added to the balance. Deferred interest is added to the balance after the assignment ends.

What if I am unable to pay my loan in full at this time?

If your loan is due, please contact Institutional loans by emailing tuitioncashloan@austin.utexas.edu or calling (512) 4757725 to discuss repayment agreement options.

What is a repayment agreement?

A repayment agreement reaffirms your debt. It becomes a part of your original promissory note; it does not replace it. It allows for monthly payments and helps avoid a collection assignment and the resulting collection fee, currently 25% of the principal balance.

It does not remove a financial bar or stop the required credit reporting as applicable. A repayment agreement allows consideration for approval of student services like, but not limited to, future semester registrations, the release of official transcripts, and graduation In Absentia; certain other conditions and requirements apply.

Please contact Institutional loans by emailing tuitioncashloan@austin.utexas.edu or calling (512) 4757725 to discuss repayment agreement options.

If you need assistance in making a spending plan or budget, contact Texas Financial Wellness atfinancialwellness@utexas.edu. We are here to support you with the resources you need to keep your degree plan on track to graduation.

If you are in need of financial aid or support, please reach out to Texas One Stop at 5122326988 or email at onestop@utexas.edu to see what resources are available to you.

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