Texas A&M International University

Office of Financial Aid

Loans - TAMIU Office of Financial Aid

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.

TAMIU offers the following loan programs:

Federal Direct Subsidized and Unsubsidized loan (undergraduate and graduate students)

Federal Direct Parent PLUS Loan (parent borrowers)

Federal Direct Graduate PLUS Loan

Texas B-On-Time Loan

Emergency Tuition and Book Loans (University Bursar's Office)

Private Alternative Loans

Student Loan Process

Loan Counseling Sessions

Federal 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.

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

Students must complete a FAFSA and all other financial aid requirements every academic year
Be enrolled a minimum of six credit hours each semester
Meet TAMIU's Satisfactory Academic Progress (SAP) Policy
Attend Entrance Counseling
Complete a Master Promissory Note and online counseling

click here for more Federal Student Aid Loan Information

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).
- 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).

Maximum Annual Loan Limits - Subsidized and Unsubsidized
Year in College	Dependent Undergrad Student	Independent Undergrad Student	Graduate and Prof. Degree Student
Freshman 0-29 hours completed	$3,500 Subsidized $2,000 Unsubsidized*	$9,500 - Only $3,500 of this amount may be in subsidized loans	$20,500 - unsubsidized loans only
Sophomore 30-59 hours completed	$4,500 Subsidized $2,000 Unsubsidized*	$10,500 - Only $4,500 of this amount may be in subsidized loans
Junior - Senior 60+ hours completed	$5,500 Subsidized $2,000 Unsubsidized*	$12,500 - Only $5,500 of this amount may be in subsidized loans
Maximum Total Debt allowed in a lifetime	$31,000- only $23,000 of this amount may be in subsidized loans	$57,500- Only $23,000 of this amount may be in subsidized loans	$138,500 - The graduate debt limit includes loans received during undergraduate study.

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 and be fully admitted into a graduate program to be considered a graduate student. Students who have a baccalaureate degree and are enrolled in a teacher or other undergraduate certification program or are working towards a second baccalaureate degree are only eligible to receive undergraduate loan amounts.

Interest Rates and Fees

Interest rate for subsidized loans for undergraduate students is 3.4%.

The interest rate on unsubsidized loans is 6.8%.

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

The current origination fee for subsidized and unsubsidized loans is 1.051%. The origination fee is retained by the federal government to reduce the cost of administering these low interest loans.

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.

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.

Parent PLUS Loans

Parents of dependent undergraduate students can apply for a Parent PLUS loan to help pay education expenses. Parents can apply by signing into the studentloans.gov website. You will need your federal atudent aid PIN. A credit check will be performed during the application process and the parent borrower must also sign a Master Promissory Note. The Parent PLUS Loan has a fixed interest rate of 7.90% and the currrent origination fee is 4.204%. You can visit the Federal Student Aid website for more information.

Gradute PLUS Loans

Graduate students enrolled in a degree-seeking program and attending school at least half-time are eligible to apply for a Graduate PLUS loan. Unlike the Direct Unsubsidized loan, Graduate PLUS loan approval is based on your credit. TAMIU highly recommends you apply for the maximum annual amount available under the Direct Loan program before applying for the Graduate PLUS Loan. The Graduate PLUS Loan has a fixed interest rate of 7.90% and the current origination fee is 4.204%. You can visit the Federal Student Aid website for more information.