Student loans
Federal Stafford Loans
UTB/TSC participates in the Federal Family Education Loan Program (FFELP) designed to assist both students with demonstrated financial need and students with no financial need. The loan may contain an interest subsidized portion (for needy students) and/or an unsubsidized portion (for non-needy students). Students must meet the minimum criteria outlined in the financial aid Eligibility Requirements section. Both undergraduate and graduate students are eligible to apply for a Stafford loan. Eligible parents may also qualify for Parent Loans (FPLUS). Federal Stafford Loans are either subsidized or unsubsidized. UTB/TSC works with a variety of lenders to provide theses loans to students. If you have borrowed student loans and would like to view your loan status, loan amounts (individual and cumulative), please link to this website: National Student Loan Data System (NSLDS) - Student Access.
New TG Loans by WEB Process
Once a student is awarded, they will receive an e-mail stating their loan is ready for processing through our new on-line process called TG Loans by Web. UTB/TSC and Texas Guaranteed (TG) have partnered to bring this new web-based product to our students. The e-mail will be sent by TG. The student will need to log in to their secure server to view the e-mail. Directions will accompany the e-mail explaining this procedure. At any time throughout the online process, the student may contact TG for help. The TG telephone number will appear on each page throughout the application. Because this is a new system, we strongly encourage students to read the instructions and all information carefully. If students do not have access to a computer, they come by our computer labs in Tandy 213 or Tandy 214. Staff will be able to assist them Monday through Friday from 8:00 am to 5:00 pm. Since a number of lenders have chosen to discontinue their participation in the loan programs, some students may have to select a new lender. These students will receive an e-mail from our office if they student need to choose another lender. This selection can be made at the same time the student is completing the TG Loans by Web application on line. Please contact our office if you have any questions regarding the new process.
Entrance and Exit Counseling: All new loan borrowers at UTB/TSC are required to attend an in-person Entrance Loan Counseling Session. Call the Financial Aid Office at (956) 882-8277 to sign up. Students should arrive at the designated session site at least 15 minutes early, have two (2) photo ID's, and the names, addresses and phone numbers of two references required for the loan application. Students that have previously borrowed student loan(s) at UTB/TSC, can do an online entrance counseling session at Online Federal Loan Counseling. Students that have borrowed loans must also do an Exit Loan Counseling Session when they graduate or cease to be enrolled half time. Students can use the same website to do either session.
Types of Loans
A Subsidized Loan is awarded on the basis of financial need. The federal government pays the interest on the loan until the student begins repayment or during periods of deferment.
An Unsubsidized Loan is not based on financial need. Interest is accrued from the time the loan is disbursed until it is paid in full. Students can choose to pay the interest while they are in school or allow it to accumulate until repayment. Students that do not pay the interest while attending school will pay more over the life of the loan.
Loan for Undergraduate Students (FPLUS) a program available to parents of dependent students wishing to borrow on behalf of that student in order to meet the cost of attendance. The lender is typically a bank, savings and loan, or credit union. The student's parents must pass a required credit check from the lender in order to be eligible. Beginning with new borrowers in late 1998-99, the interest rate is set annually on July 1st at the 91-day T-bill plus 3.1% with a cap of 8.25%. Interest begins to accumulate at the time the first disbursement is made. Within 60 days after the final loan disbursement, parents must begin repaying the Federal PLUS Loan. Disbursements will be made in the form of a co-payable check issued to the parent and the institution and sent to the institution. The annual borrowing limit is the difference between the cost of attendance and the estimated financial assistance.
Lender Selection
The student must select a lender, which is typically a bank, savings and loan, or credit union. Most schools maintain a list of most commonly used lenders to assist the student in making a selection. These lenders are evaluated annually based on factors including, but not limited to: customer service, borrower benefits, loan servicing processes, communications with the institution, default management, technological capabilities, and innovations in lending processes. Students should research each lender carefully and select from those lenders that offer the most incentives at time of repayment. Students do not have to select a lender from the list. Students have the right to select any lender that participates in the Federal Family Education Loan Programs. UTB/TSC follows fair lending practices as stipulated by the U. S. Department of Education and the University of Texas System.
Enrollment Requirements
Undergraduate students must be enrolled for a minimum of six (6) credit hours to be eligible to receive their loan proceeds. This six hour requirement applies to each long semester (Fall and Spring) and to each individual summer session (Summer 1 and Summer 2). The minimum requirement for Graduate Students is five (5) credit hours in each semester or summer session.
Interest Rates
Stafford loans disbursed on or after July 1, 2008 have a fixed interest rate of 6.0%. Stafford loans disbursed prior to July 1, 2006 currently have a variable interest rate of 6.62% while in school or in deferment. The variable rate while in repayment is 7.22%. This variable rate will be adjusted every July 1st, but will not exceed 8.25%
Annual Borrowing Limits
The grace period extends for six months from the date of graduation or the last date the student was enrolled at least half-time. The minimum monthly payment is $50 and the maximum repayment period is 10 years. Federal Stafford Loan annual borrowing limits at UTB/TSC are as follows:
| Dependent Students |
Subsidized |
Unsubsidized |
Total |
| 0-29 hours earned |
$3,500.00 |
$2,000.00 |
$5,500.00 |
| 30-59 hours earned |
$4,500.00 |
$2,000.00 |
$6,500.00 |
|
60-Bachelor's Degree |
$5,500.00 |
$2,000.00 |
$7,500.00 |
| Teacher Certification |
$5,500.00 |
$2,000.00 |
$7,500.00 |
|
Maximum Aggregate Loan Limit |
$31,000 (Maximum $23,000 from Subsidized) |
| Independent Students |
Subsidized |
Unsubsidized |
Total |
| 0-29 hours earned |
$3,500.00 |
$6,000.00 |
$9,500.00 |
| 30-59 hours earned |
$4,500.00 |
$6,000.00 |
$10,500.00 |
|
60-Bachelor's Degree |
$5,500.00 |
$7,000.00 |
$12,500.00 |
| Teacher Certification |
$5,500.00 |
$7,000.00 |
$12,500.00 |
|
Maximum Aggregate Loan Limit |
$57,500 (Maximum $23,000 from Subsidized) |
| Graduate/Professional |
$8,500.00 |
$12,000.00 |
$20,500.00 |
| Maximum Aggregate Loan Limit |
$138,500 (Maximum $65,500 from Subsidized) |
|
Students may not qualify for the entire yearly loan limit.
Schools are required to use the following formula:Cost of Attendance - Estimated Family Contribution - Financial Assistance = Subsidized Loan
Cost of Attendance - Financial Assistance = Unsubsidized Loan
Eligibility
Stafford loans are available to undergraduate and graduate students who are:
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U. S. Citizens or eligible non-citizens
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Enrolled at least half-time in an eligible program of study
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Registration with the U. S. Selective Service System (males not exempt from registration)
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Maintaining Satisfactory Academic Progress (SAP)
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Not exceeding their annual or lifetime aggregate limit
Borrowers may not qualify if they have defaulted on a federal education loan, owe an overpayment on other federal education aid, have been convicted of a drug-related offense while receiving federal student aid or are incarcerated. The borrower may also be ineligible if, while receiving federal student aid, they have been convicted of or have pleaded nolo contendere or guilty to a crime involving fraud in obtaining Title IV funds and have not completed the repayment of such funds.
Students can request Stafford Loans by completing the Free Application for Federal Student Aid (FAFSA). The FAFSA can be completed online at www.fafsa.ed.gov. The student should indicate on the FAFSA that they are interested in student loans. The student should list UTB/TSC on their FAFSA application with our school code: 030646
Once the application is received by UTB/TSC, the student will be notified if there are pending items. Otherwise, an award notification will be e-mailed to the student outlining their financial aid awards. Effective for Fall 2008, students will be required to apply for their student loan online through TG Loans by WEB. Once the student receives notification of their loan award, they will receive instructions by e-mail on the TG Loans by WEB process. Students can complete this process from any computer. Students should follow the instructions carefully and meet required actions in a timely manner. Students needing assistance on the new process can come by the Financial Aid Quick Stop at Tandy 214.
If a student fails to indicate on the FAFSA that they are interested in student loans, a student request form can be submitted online at FA Online Forms site. Once the student has been awarded, they will receive further instructions for obtaining the loan.
Repayment of Your Loan
No payment of the principal is required while the student is enrolled in school at least half-time or during their grace period. Students begin repayment of Stafford Loans six months after they graduate, withdraw from school or drop below half-time status. The following terms will apply once in repayment.
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Minimum payment of at least $50.00 per month (this monthly payment may be more depending on the amount of loans borrowed)
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Standard repayment term of 10 years, unless other terms are granted by the lender
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Borrowers may have their payments temporarily postponed under certain conditions (deferment and forbearance)
-
No penalty for early repayment
Useful Links:
Online Federal Loan Counseling
National Student Loan Data System (NSLDS) - Student Access
View information about your Title IV loans and/or Pell grant data
Teacher Loan Forgiveness Program (PDF)
Other Loan Forgiveness Programs
Loan Repayment Programs
Loan Consolidation Information
Teacher Loan Forgiveness Forms:
Teacher Loan Forgiveness application (PDF)
Teacher Loan Forbearance form (PDF)
Loan Deferment Forms:
In-School Deferment Request (PDF)
Unemployment Deferment Request (PDF)
Economic Hardship Deferment Request (PDF)
Parental Leave/Working Mother Deferment Request (PDF)
Temporary Total Disability Deferment Request (PDF)
Public Service Deferment Request (PDF)
PLUS Borrower with Dependent Student Deferment Request (PDF)