STUDENT LOANS

Student Loans, unlike grants, scholarships and work-study, are borrowed funds that must be paid back, with interest. Loans are legal obligations, so before borrowing each year, consider the amount you will have to repay. Federal student loans are available for undergraduate and graduate students and parents of undergraduate students.

What are Direct Loans?

The William D. Ford Direct Loan program, known as Direct Loans, was authorized and created by the Higher Education Act of 1965. The program provides subsidized, unsubsidized, PLUS, GradPLUS and consolidation loans to borrowers for educational purposes. The lender for all of these loans is the U.S. Department of Education. 

How do I apply?

The Free Application for Federal Student Aid (FAFSA) is required to borrow a federal student loan. If you have completed the FAFSA, check your account on the University Portal, UCONNECT, loans are part of your financial aid package. Follow the loan process above to complete all necessary steps for borrowing a loan.

Students must meet the following requirements in order to receive a student loan:

• Student must have a complete financial aid folder for the current academic year (including the FAFSA)
• Enroll for at least six credit hours
• Meet TAMIU's Satisfactory Academic Progress (SAP) Policy
• Attend Entrance Counseling
• Complete a Master Promissory Note and online counseling

Subsidized Loans

• Available to students who demonstrate financial need.
  
  
• The U.S. Department of Education pays the interest:
  
  • While enrolled in school for at least half-time (six hours).
  • For the first six months after leaving school (referred to as a "grace period").
  • During a period of deferment (a postponement of loan payments).
    
• The amount of the subsidized loan cannot exceed your financial need.

Unsubsidized Loans

• Does not require students to demonstrate financial need.
  
• The U.S. Department of Education does not pay interest on unsubsidized loans.
  
• You are responsible for paying the interest that accrues on the loan from the time the loan is disbursed until it is paid in full.
  
• You can pay the interest while you are in school or during a period of deferment or forbearance.
  
• You may allow the interest to accrue and have the interest added to the principle amount of your loan which is known as capitalization.

Depending on your financial need, you may receive both subsidized and unsubsidized loans for the same enrollment period, but the total amount of these loans may not exceed the annual loan limit (see chart below).

NOTE:
The amounts shown in the chart above are the maximum amounts that you may borrow for an academic year.  You might receive less than the maximum if you receive other types of financial aid that is used to cover a portion of your cost of attendance.  You will also be limited on the amount you can borrow if you are borrowing for a term less than an academic year, such as a Spring only loan. The amount of the loan can not exceed the student's cost of attendance.

Graduate Status
Students must have received their first baccalaureate degree to be considered a graduate student. Also, students who have a baccalaureate degree and working towards a certification or a second baccalaureate degree will only be eligible to apply for undergraduate loan amounts.


Interest Rates and Fees

Interest rates for subsidized loans for undergraduate students for which the first disbursement is made on or after:

For an unsubsidized loan for undergraduate students or a subsidized or unsubsidized loan for graduate students, the interest rate is 6.8%.

The interest rate for each loan period remains fixed for the life of the loan.

For Stafford Loans first disbursed between July 1, 1998 and June 30, 2006, the interest rate is variable (adjusted annually on July 1st) but will not exceed 8.25 percent. (You'll be notified any time the variable rate changes.)

The origination fee for subsidized and unsubsidized loans is 1.0% for loans first disbursed on or after July 1, 2010. The origination fee is retained by the federal government to reduce the cost of administering these loan interest loans.

The origination fee for Parent PLUS and Graduate PLUS loans is 4%.

Disbursement of Loan Funds

• Disbursements must be done in at least two installments.
  
• No installment will be greater than half the amount of the loan.
  
• Student loan money must first be used to pay for tuition, fees, room and board.
  

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ENTRANCE / EXIT COUNSELING SESSIONS


Entrance Counseling

Federal regulations mandate that all first-time loan borrowers complete entrance counseling in order to be eligible for a Stafford loan. TAMIU requires all first-time borrowers at the University to attend an entrance counseling session in person prior to applying for a student loan.

Exit Counseling

Federal regulations mandate that all exiting students, due to graduation or withdrawal from the University, who have received any type of federal loan complete exit counseling. TAMIU requires students to attend an exit counseling session in person to fulfill the requirement. Students who do not attend will have a hold placed on all records and will not be allowed to receive their diploma or academic transcript. Students dropping below half-time enrollment (6 hours) must attend an exit counseling session as well if they received any type of federal government loan at TAMIU.

Click here for scheduled entrance and exit counseling sessions.

Emergency Loans


Emergency Tuition Loans and Book Loans are available through the TAMIU Business Office. Please contact the Business Office for more information.

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