Loan Options to Help Make College Affordable
The University of Texas at Tyler participates in the William D. Ford Federal Direct Loan Program. First-time borrowers and new students to UT Tyler must complete the following two processes in order to receive loan funds: * please note, both links lead to the same site
Loan Program Information
What types of college loans are available to UT Tyler Students?
The Federal Direct Loan Program offers the Federal Subsidized Loans, Federal Unsubsidized Loans, Federal PLUS Loan (parent loan for undergraduate dependent students) and Graduate PLUS Loan (for graduate students who have exhausted Unsubsidized).
The TEXAS B-On-Time Loan Program offers limited funding provided to participating schools by the Texas Higher Education Coordinating Board. UT Tyler does not participate in the Texas Higher Education Coordinating Board (State) CAL Loan Program. Additional eligibility requirements may be found at http://www.collegeforalltexans.com/.
What are the annual federal loan Limits? The college loan limits for dependent undergraduate UT Tyler students are:
- $5,500 freshman, no more than $3,500 of which may be subsidized
- $6,500 sophomores, no more than $4,500 of which may be subsidized
- $7,500 juniors and seniors, no more than $5,500 of which may be subsidized
The college loan limits for dependent undergraduate students whose parents were denied a Parent PLUS loan and for independent undergraduate students are:
- $9,500 freshmen, no more than $3,500 of which may be subsidized
- $10,500 sophomores, no more than $4,500 of which may be subsidized
- $12,500 juniors and seniors, no more than $5,500 of which may be subsidized
The college loan limits for UT Tyler graduate students who are fully admitted into a graduate program are:
- $20,500 unsubsidized only (per new regulations beginning July 1, 2012, graduate students are no longer eligible for Subsidized Stafford Loans)
Interest rates for Direct Subsidized Loans for undergraduate students with a first disbursement on or after July 1, 2012 is 3.4% and Direct Unsubsidized Loans for all students with a first disbursement on or after July 1, 2012 is 6.8%. The interest rate for the Direct Plus Loans and Graduate Plus Loans remain at an interest rate of 7.9%.
When will I get my student loan and/or PLUS loan? After you have completed the online Master Promissory Note and Entrance Loan Counseling, funds will be applied to your UT Tyler student account. After current tuition and fee charges are paid, the remaining college loan monies will be refunded to your P2Card based on your selection.
Will I need to do anything? Yes. You will need to be enrolled for at least 6 hours at UT Tyler to be eligible for loan funds. You will also need to complete a Direct Loan Master Promissory Note (eMPN) and Direct Loan Entrance Loan Counseling if you are a first-time borrower.
Parents will also need to complete a new Direct Loan eMPN and submit the Parent Plus Loan Application and Authorization Forms.
How will I know what to do and when to do it? When the time comes for you to take action, you will be notified by the UT Tyler financial aid office on what, when and where. Keep an eye on your Patriot email account for information as well as your account in myUTTyler.
Are there any additional forms required for the Parent Plus Loan after I have accepted the loan?
Yes. If you accepted a PLUS Loan, your parent must complete and submit a PLUS Application and PLUS Authorization form to the UT Tyler Financial aid office and they must do a Master Promissory Note for PLUS online at studentloans.gov. T he same parent must complete all of the processes.
PLUS Loans require a credit check on the borrower. If the borrower’s credit is denied, the student may request additional Direct Unsubsidized Loan funding by submitting a request form. (All forms listed are available in the Forms Library on our website ).
**Parent borrowers do not have to do a new Master Promissory Note after the first year of borrowing at UT Tyler. They must complete the PLUS Application and PLUS Authorization forms for the financial aid office each year.
What is a Master Promissory Note (eMPN)? The eMPN is an electronic promissory note that must be completed to receive a federal loan. It is your promise to repay your federal student loan. There are two types of eMPNs in the Federal Direct Loan Program: one for the Stafford student loans and one for PLUS loans.
Are there any fees associated with using the Federal Direct Loan Program?
Yes. The Direct Loan Program charges an origination fee. Currently, for all Federal Direct Subsidized Loans and Federal Direct Unsubsidized Loans that are first disbursed on or after July 1, 2012, the origination fee is 1.0%.
For all Direct PLUS Loans for both parent and graduate/professional student borrowers, the origination fee is 4%, regardless of the first disbursement date.
Can I consolidate loans received through the Federal Direct Loan Program with loans received through the FFELP Program so that I only have one payment once I leave school? UT Tyler students who have previously borrowed FFELP student loans through a lending institution and who are now borrowing a Federal Direct Loan are encouraged to consolidate all of their student loans into one Federal Direct Consolidation Loan. This will help the borrower avoid the situation of owing two separate loans to two different lenders.
Borrowers who are interested in consolidation of all their student loans into one Consolidation Loan can contact the U.S. Department of Education for more information.
Texas State Student Loan Program Information
Texas B-On-Time Student Loan Program
The Texas B-On-Time Student Loan Program provides limited funding for no-interest loans to undergraduate UT Tyler students. If a student meets specified goals, the entire loan amount can be forgiven upon graduation.
To qualify students must be a Texas resident, graduate from a Texas public or accredited private high school not earlier than the 2002-03 academic year under the recommended or distinguished program, have financial need and enroll full time (12 credit hours per semester) in undergraduate courses.
For renewal eligibility, students must complete at least 75% of the semester credit hours attempted in the most recent academic year and have a cumulative GPA of at least 2.5 on all course work. A student may not receive B-On-Time loans for more than 150 credit hours.
Note: The maximum loan amount for 2012-13 is $3,700 per semester.
Note: Due to limited state funding for this program, eligible renewal students will be given priority for this award for the 2012-2013 academic year.
*These procedures must be completed by all students who have accepted an initial or renewal B-On-Time Loan award.
- U.S. Department of Education Direct Loan Website
- Direct Loan Servicing Online Website
- Direct Loan Consolidation Website
- Graduating? Withdrawing? Dropping below 6 hours? Complete Direct Loan and FFELP Exit Loan Counseling
- Teacher Loan Forgiveness