Loans

Loans are cash that you simply or your mother and father borrow and repay with curiosity. Education loans are supplied at low-interest charges and have lengthy compensation phrases. Some loans require an illustration of want, others don’t. The rate of interest varies every year and it’s decided by the federal authorities each July 1st. The Office of Student Financial Aid expresses a philosophy of cautious student loan borrowing by informing students that he/she has choices with regard to paying their school bills. If a student accepts a partial quantity of their Federal Direct Subsidized Loan or Federal Direct Unsubsidized Loan, the student can request one adjustment per semester inside the first 90 days of the semester. 

Please notice that the processing and disbursing of student loans ends two weeks earlier than the final day of finals week every semester. For the summer season time period, processing and disbursing of student loans will cease two weeks previous to the tip of Summer II. 


Federal Direct Subsidized Loan

The Federal Direct Subsidized Loan is a loan from the U.S. Department of Education made on the idea of the student’s monetary want and different particular eligibility necessities. The Federal authorities doesn’t cost curiosity on these loans whereas the borrower is enrolled not less than half-time, throughout a six-month grace interval, or throughout approved intervals of deferment.

The Federal Direct Subsidized Loan is accessible to undergraduate students who show monetary want and are enrolled for six semester credit hours or extra. This loan is deferred (fee not required) so long as the student is enrolled for six semester credit hours or extra. The curiosity on the loan is paid by the United States Government throughout deferment. This rate of interest is variable and decided by the federal authorities each July 1st. Amounts proven are based mostly on full-time enrollment and could also be diminished if a student is enrolled lower 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 total quantity of the Federal Direct Subsidized Loan be borrowed earlier than any portion of the Federal Direct Unsubsidized Loan be borrowed.

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Federal Direct Unsubsidized Loan

The Federal Direct Unsubsidized Loan is a loan from the U.S. Department of Education made on the idea of particular eligibility necessities.  Interest is charged all through the lifetime of the loan. The borrower could select to pay the curiosity charged on the loan or permit the curiosity to be capitalized (added to the loan principal) when the loan enters compensation.

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The Federal Direct Unsubsidized Loan is accessible to undergraduate and graduate students who present half-time enrollment or extra. This loan is deferred (fee will not be required) so long as the student reveals half-time enrollment or extra. The curiosity on this loan accrues (accumulates) and is capitalized (added to precept). The rate of interest is variable and decided by the federal authorities each July 1st.

Dependent students can solely borrow $2,000 of this loan, solely after they’ve taken the utmost quantity of their Federal Direct Subsidized Loan. 

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Federal Direct Subsidized and Unsubsidized Loan Limits

 

The following chart reveals the annual and combination limits for sponsored and unsubsidized loans.

Year

Dependent Students (besides students whose mother and father are unable to acquire PLUS Loans) Independent Students (and dependent undergraduate students whose mother and father are unable to acquire PLUS Loans)
First-Year Undergraduate  Annual Loan Limit $5,500 – No greater than $3,500 of this quantity could also be in sponsored loans. $9,500 – No greater than $3,500 of this quantity could also be in sponsored loans.
Second-Year Undergraduate Annual Loan Limit $6,500 – No greater than $4,500 of this quantity could also be in sponsored loans. $10,500 – No greater than $4,500 of this quantity could also be in sponsored loans.
Third-Year and Beyond Undergraduate Annual Loan Limit $7,500 – No greater than $5,500 of this quantity could also be in sponsored loans. $12,500 – No greater than $5,500 of this quantity could also be in sponsored loans.
Graduate or Professional Students Annual Loan Limit Not Applicable (all graduate {and professional} students are thought-about unbiased) $20,500 (unsubsidized solely)
Subsidized and Unsubsidized Aggregate Loan Limit $31,000 – No greater than $23,000 of this quantity could also be in sponsored loans.

$57,500 for undergraduate – No greater than $23,000 of this quantity could also be in sponsored loans.

$138,500 for graduate or skilled students – No greater than $65,000 of this quantity could also be in sponsored loans. The graduate combination restrict consists of all federal loans obtained for undergraduate examine.

 


Federal Direct PLUS Loans (PLUS)

Available to dependent student’s father or mother(s) and graduate students who wouldn’t have an hostile credit historical past. Students should present half-time enrollment to be able to obtain a PLUS Loan. Graduate students enrolled half time may have their PLUS loan placed on deferment (fee not required).

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A father or mother who has borrowed on behalf of their student will likely be required to make funds to the PLUS loan as soon as the loan is absolutely disbursed (paid out), except, the father or mother selected to request a deferment through the loan request course of and the deferment was accepted.

Amounts for the PLUS loan are based mostly on particular person student’s eligibility.

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College Access Loan (CAL)

Available to undergraduate and graduate students. Student should be a Texas resident and never have an hostile credit historical past. Students should present half time enrollment to obtain the CAL. The loan is deferred (fee not required) whereas the student is enrolled half time. The rate of interest is 4.20% and isn’t capitalized.

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Alternative/ Private Loan

Most degree-seeking students enrolled not less than half time are eligible for the Federal Direct Student Loan(s). But, when monetary assist and Federal Student loans do not cowl the price of training, credit-based loans could also be choice. Parents of dependent undergraduate students and  graduate/skilled students can borrow from the Federal PLUS Loan program if there isn’t any hostile credit. Private credit-based loans are additionally out there and should align favorably along with your wants and preferences. Terms and circumstances fluctuate by lender.

Disclosures:

  • UTEP strongly encourages students to borrow the out there most federal student loan quantities earlier than requesting any non-public training loans.
  • Please notice that UTEP will not be affiliated with any non-public student loan lenders.
  • Using this technique supplied by a 3rd get together, gives an inventory of personal student loan lenders with out prejudice for the aim of helping students and doesn’t endorse, promote or advocate anyone lender over one other.
  • The listed lenders are those who have established a lending historical past with the students attending UTEP through the previous 3 years.
  • Lenders don’t pay a price to be included on this record.
  • Students are usually not obligated to borrow solely from the lenders which might be listed and; subsequently, could select any non-public training loan lender.
  • The value of attendance limits what a student can borrow in a personal training loan.

If you’ve got questions, please contact the Office of Student Financial Aid at 915-747-5204

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Loan Repayment


Loan Proration for Subsidized and Unsubsidized Loans

Per federal regulation, UTEP is required to prorate a dependent or unbiased undergraduate student’s annual Stafford loan limits when they’re of their remaining semester. This largely will have an effect on students who will graduate on the finish of the autumn semester. The Office of Student Financial Aid will certify your loan with this calculation together with different variables that may have an effect on loan quantities corresponding to combination loan limits.

If you fail to inform the monetary assist workplace of your upcoming commencement previous to the disbursement of your loans, the monetary assist workplace will obtain an official commencement record from the registrar’s workplace and your loans could also be adjusted which might end in a invoice with the college.

 

 

 

 

 

 

 

 

 

 

 Student Loan Indebtedness Summary *NEW*

I’ve accepted my first federal direct student loan, what do I do now?

 Entrance Counseling

If you haven’t beforehand obtained a Direct Loan or Federal Family Education Loan (FFEL), the Federal Government requires you to finish entrance counseling to make sure that you perceive the duties and obligations you’re assuming.

If you’re finishing entrance counseling to borrow a loan as an undergraduate student, then the doorway counseling will fulfill counseling necessities for Direct Subsidized Loans and Direct Unsubsidized Loans.

If you’re finishing entrance counseling to borrow a loan as a graduate or skilled student, the doorway counseling will fulfill counseling necessities for Direct Unsubsidized Loans and Direct PLUS Loans.

 Master Promissory Note

The Subsidized/Unsubsidized Master Promissory Note (MPN) is a authorized doc by which you promise to repay your federal student loan(s) and any accrued curiosity and costs to your lender or loan holder. There is one MPN for Direct Subsidized/Unsubsidized Loans and a unique MPN for Direct PLUS Loans. Most faculties are approved to make a number of federal student loans beneath one MPN for as much as 10 years.

 I’m graduating/leaving UTEP, what occurs subsequent?

Exit counseling gives necessary info to organize you to repay your federal student loan(s). If you’ve got obtained a sponsored, unsubsidized or PLUS loan beneath the Direct Loan Program or the FFEL Program, you could full exit counseling every time you: Drop beneath half-time enrollment, Graduate, or go away college. Your exit counseling will inform you on compensation.

 

Federal School Code: 003661