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:
Student Loan Process: A step by step guide
For Members of the U.S. Armed Forces: What you need to know about your federal student loan benefits
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. Click here for current SAP Policy.
- Attend Entrance Counseling
- Complete a Master Promissory Note and online counseling
- 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.
- 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|
0-29 hours completed
$3,500 Subsidized $2,000 Unsubsidized*
Only $3,500 of this amount may be in subsidized loans
unsubsidized loans only
30-59 hours completed
$4,500 Subsidized $2,000 Unsubsidized*
Only $4,500 of this amount may be in subsidized loans
|Junior - Senior
60+ hours completed
$5,500 Subsidized $2,000 Unsubsidized*
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
The amounts shown in the chart above are the maximum amounts that you may borrow for an academic year. An academic year for financial aid awarding purposes consists of the fall, spring and consecutive summer terms; for example: Fall 2015, Spring 2016 and Summer 2016 (SSI, SSII and SSIII combined). 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.
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 working towards a second baccalaureate degree are only eligible to receive undergraduate loan amounts.
Interest Rates and Fees
The interest rate for subsidized and undergraduate unsubsidized loans disbursed on or after 7/1/15 and before 7/1/16 is 4.29%. The interest rate on unsubsidized loans disbursed to graduate students on or after 7/1/15 and before 7/1/16 is 5.84%.
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 1.068%. 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.
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ENTRANCE / EXIT COUNSELING SESSIONS
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.
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.
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 student aid (FSA) ID. A credit check will be performed during the application process and the parent borrower must also sign a Master Promissory Note. Parent PLUS Loans disbursed on or after 7/1/15 and before 7/1/16 have a fixed interest rate of 6.84% and the currrent origination fee is 4.272%. 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. Graduate PLUS Loans disbursed on or after 7/1/15 and before 7/1/16 have a fixed interest rate of 6.84% and the current origination fee is 4.272%. You can visit the Federal Student Aid website for more information.
College Access Loan (CAL)
The College Access Loan (CAL) program provides alternative educational loans to Texas-resident students who are unable to meet the cost of attendance. CAL loan approval is based on credit. Students can apply at hhloans.com. Visit the THECB webiste for more information.
Commitment to Ethical Practices in Financial Aid
Texas A&M International University and the Office of Financial Aid are committed to conducting business in an ethical manner and with the highest level of integrity. To this end, our office adheres to the Texas A&M University System Ethics Policy 07.01 and Texas Higher Education Fair Lending Practices 07.02 as indicated in our Code of Conduct for Financial Aid Professionals at Texas A&M International University. In addition, as a member of the National Association of Student Financial Aid Administrators, we comply with their Statement of Ethical Principles and Code of Conduct for Institutional Financial Aid Professionals.
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5201 University Blvd.
Laredo, TX 78041