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Student Financial Services

Loans

Student loans are funds provided to undergraduate, graduate and/or professional students to help assist with educational expenses.  Loans are considered self-help financial assistance and must be repaid.   

For loan consideration, students must complete the Free Application for Federal Student Aid (FAFSA) using the appropriate school code. 

School Codes:


The following loan programs are available to students based on program enrollment, dependency status and eligibility:

UTHealth
Federal Loans
Institutional Loans

UTMDACC
Federal Loans

UTHealth Northeast
Federal Loans


FEDERAL LOANS

William D. Ford Federal Direct Subsidized Loan (Direct Subsidized)

The Direct Subsidized loan is an optional loan offered by the Department of Education.  These loans are available to undergraduate students who demonstrate financial need as determined by the Department of Education.  Direct Subsidized Loans assist with educational expenses but may not exceed financial need. The student is responsible for repaying the loan.

The interest rate for Direct Subsidized loans first disbursed on or after July 1, 2017 is 4.45%.  No interest is charged while a student is enrolled at least half-time in an eligible school, for the first six months after leaving school (referred to as a grace period*) and during deferment periods.  Interest rates are fixed for the life of the loan.

 *Students receiving a Direct Subsidized Loan that is first disbursed between July 1, 2012 and July 1, 2014, will be responsible for paying any interest that accrues during the grace period.  Any unpaid interest that accrues during the grade period will be added to the principal balance.

150% Direct Subsidized Loan Limit

In July 2012, Congress enacted the Moving Ahead for Progress in the 21st Century Act (MAP-21) [Public Law 112-141].  This law added a new stipulation to the Direct Loan statutory requirements which limits a first-time borrower’s eligibility for Direct Subsidized Loans to a period not to exceed 150% of the length of the borrower’s educational program. 

Pursuant to this new provision under certain conditions, first-time borrowers who have exceeded the 150% limit will lose the interest subsidy on their Direct Subsidized Loans.

Only first-time borrowers on or after July 1, 2013 are subject to the new provision.  A first-time borrower is generally defined as one who did not have an outstanding balance of principal or interest on a Direct or FFEL Program Loan on July 1, 2013. 

 

William D. Ford Federal Direct Unsubsidized Loans (Direct Unsubsidized)

The Direct Unsubsidized loan is an optional loan offered by the Department of Education.  These loans available to both undergraduate and graduate students and are not based on financial need as determined by the Department of Education.  The student is responsible for repaying the loan.

Interest is charged during all periods; even during the time a student is enrolled at least-half time in an eligible school, during grace and deferment periods. The interest rate for Direct Unsubsidized loans first disbursed on or after July 1, 2017 is as follows: 

Interest rates are fixed for the life of the loan.

Eligibility requirements for the Direct Subsidized/Unsubsidized Loan: 

To apply for the Direct Subsidized and/or Unsubsidized Loans:

 

William D. Ford Federal Direct PLUS Loan (Parent PLUS) - Dependent Students

Parent PLUS loans are interest-bearing loans for the parents of dependent students who are enrolled at least half-time in a degree-seeking program at an eligible school.  This loan assists with educational expenses up to the student’s cost of attendance minus all other assistance. The parent is responsible for repaying the loan. 

The interest rate for the Parent PLUS loan first disbursed on or after July 1, 2017 is 7.00%.  Interest is charged during all periods beginning on the date of the loan’s first disbursement.  Interest rates are fixed for the life of the loan.

Additionally, applicants pay a loan origination fee which is a percentage of the principal amount of each Parent PLUS Loan received.

Dependent students whose parent(s) have applied for but were unable to obtain a Parent PLUS loan are generally eligible to receive additional Direct Unsubsidized loan funds. 

The Parent PLUS loan will be evenly disbursed over the terms of the student’s enrollment for the current award period unless otherwise indicated.

The Parent PLUS loan enters repayment once the loan is fully disbursed.  Borrowers may contact the loan servicer to request a deferment for the following reasons:

While the borrower /borrower’s dependent is enrolled in school at least half-time

For an additional six months after the borrower’s dependent ceases to be enrolled in school at least half-time

Interest will accrue on the Parent PLUS loan during deferment. Borrowers may choose to pay the accrued interest or allow the interest to capitalize when the deferment period ends.  The loan servicer will notify the borrower when the first loan payment is due.

Eligibility requirements for the Direct Parent PLUS Loan: 

 To apply for the Parent PLUS Loan:

The MPN and Counseling will be electronically transmitted to the school.

PLUS Loan awards will be accepted on behalf of the student/parent by the Office of Student Financial Services upon receipt of all completed documentation.

 

Federal Direct PLUS Loan (Graduate PLUS) - Graduate/Professional Students

Graduate PLUS loans are interest-bearing loans for graduate/professional students enrolled at least half-time in a degree-seeking program at an eligible school. This loan assists with educational expenses up to the student’s cost of attendance minus all other assistance.  The student is responsible for repaying the loan.

The interest rate for Graduate PLUS loans first disbursed on or after July 1, 2017 is 7.00%.  Interest is charged during all periods beginning on the date of the loan’s first disbursement.  Interest rates are fixed for the life of the loan.

Additionally, borrowers pay a loan origination fee which is a percentage of the principal amount of each Graduate PLUS loan received.

The Graduate PLUS loan will be evenly disbursed over the terms of enrollment for the current award period unless otherwise indicated.

The Graduate PLUS loan enters repayment once the loan is fully disbursed.  Borrowers may contact the loan servicer to request a deferment for the following reasons:

Interest will accrue on the Graduate PLUS loan during deferment. Borrowers may choose to pay the accrued interest or allow the interest to capitalize when the deferment period ends.  The loan servicer will notify the borrower when the first loan payment is due.

Eligibility requirements for the Graduate PLUS Loan: 

To apply for the Graduate PLUS Loan:

The MPN and Counseling will be electronically transmitted to the school.

PLUS loan awards will be accepted on the student’s behalf by the Office of Student Financial Services upon receipt of all completed documentation. 

 

FEDERAL DIRECT LOAN FEES

Borrowers pay a loan origination fee on all Direct Subsidized, Unsubsidized and PLUS Loans.  The loan fee will be proportionately deducted from each loan disbursement.

Federal Direct Loan Fees are as follows:

Loan Program

Fees for loans first disbursed on or after October 1, 2016 and before October 1, 2017

Fees for loans first disbursed on or after October 1, 2017 and before October 1, 2018

Direct Stafford Loan

(Subsidized & Unsubsidized)

1.069%

1.066%

Direct PLUS Loan

(Parent & Grad/Prof Student)

4.276%

 

4.264%

 

 

FEDERAL DIRECT LOAN INTEREST RATES & FORMULA

Interest rates for Federal Direct Loans are set by Congress and are based upon formulas that use the equivalent rates of the 91-day Treasury bill plus a statutory add-on percentage.   The calculated rate is capped by a maximum interest rate. 

The chart below provides the interest rates for Direct Subsidized, Unsubsidized and PLUS loans: 

Fixed Rate Direct Loans

Borrower

Loan Program

Loans first disbursed on or after 7/1/16 and before 7/1/17

Loans first disbursed on or after 7/1/17 and before 7/1/18

Undergraduate Students

Subsidized

& Unsubsidized

3.76%

4.45%

Graduate or Professional Students*

Unsubsidized

5.31%

6.00%

Parents and Graduate or Professional Students

PLUS Loan 

6.31%

7.00%

*Pursuant to the Budget Control Act of 2011:  Graduate and professional students are not eligible to receive Direct Subsidized Loans for loan periods beginning on or after July 1, 2012

The amount of interest that accumulates on your loan from month to month is determined by a simple daily interest formula.  This formula consists of multiplying your loan balance by the number of days since the last payment times the interest rate factor.


FEDERAL DIRECT LOAN LIMITS

The school uses information from the student’s FAFSA to determine the type of loan(s) and actual loan amount a student qualifies for based on a student’s financial need, dependency status and grade level.  There are limits on the amount of Direct Subsidized and Unsubsidized loans a student may be eligible to receive each academic year (annual loan limits) and the total amounts a student may borrow for both undergraduate and graduate study (aggregate loan limits).

The following chart outlines the annual and aggregate limits for Direct Subsidized and Unsubsidized loans: 

Direct Stafford Loan Limits

 

Undergraduate Students

Graduate Students

Dependent¹

Independent²

1st Year

Annual Limit

$5,500 ($3,500)³

$9,500 ($3,500)

$20,500 ($8,500)4

for each year

2nd Year

Annual Limit

$6,500 ($4,500)

$10,500 ($4,500)

3rd Year

Annual Limit

$7,500 ($5,500)

$12,500 ($5,500)

Aggregate

$31,000 ($23,000)

$57,500 ($23,000)

$138,5005 ($65,500)

1Except those whose parents are unable to borrow a PLUS loan
2These limits also apply to dependent students whose parents are unable to borrow a PLUS loan
3The numbers in parentheses represent the maximum amount that may be subsidized
4Graduate and professional students are not eligible to receive Direct Subsidized Loans for loan periods beginning on or after July 1, 2012
5The aggregate amounts for graduate students include loans for undergraduate study. The aggregate limits include both Direct Subsidized and Unsubsidized Loans and any subsidized and unsubsidized Stafford Loans received through the Federal Family Education Loan (FFEL) Program.

Graduate and professional students enrolled in certain health profession programs may qualify for additional Direct Unsubsidized Loan amounts each academic year.  Please contact the Office of Student Financial Services for more information about annual and aggregate limits for health profession students.

 

Federal Perkins Loan

(Information in this section will be revised to reflect current Legislative action)

Federal Perkins Loans are low-interest federal student loans for undergraduate, graduate and professional students with exceptional financial need.  The school is the lender.  Funds are awarded based on fund availability. 

The interest rate for the Perkins Loan is 5%.

Perkins Loan disbursements are typically paid out evenly over the terms of the current enrollment period with the first disbursement occurring on or after September 1st.

This loan carries a 9 month grace period after leaving school, ceasing to be enrolled at least half-time or upon graduation.

Undergraduate students may borrow a total of $27,500 over the lifetime of the loan.  Graduate students may borrow a total of $60,000, which includes amounts borrowed as an undergraduate. 

Eligibility requirements for the Federal Perkins Loan: 

To apply for the Federal Perkins Loan:

Students must complete the Free Application for Federal Student Aid (FAFSA) to be considered for this loan.  The Perkins Loan will be offered as part of the award package pending the school’s determination of the student’s eligibility and based on fund availability. 

 
Health Profession Student Loan (HPSL)

The Health Professions Student Loan program provides long term, low interest rate loans to full-time students enrolled in the Doctor of Dental Surgery (DDS) program.  When compared to other federal student loans and private loans, this loan provides a significant savings.

The interest rate is 5% and begins to accrue following a one-year grace period after the borrower cease to be a full-time student. 

The loan offers deferment of principal and interest whilst the borrower:

  1. Serves on active duty as a member of a uniformed service of the United States, for up to three years;
  2. Serves as a volunteer under the Peace Corps Act, for up to three years;
  3. Pursues advanced professional training, including internships and residencies;
  4. Pursues a full-time course of study at a health professions school eligible for participation in the HPSL program;
  5. Leaves the institution, with the intent to return to the institution as a full-time student, to engage in a full-time educational activity which is directly related to the health profession for which the borrower is preparing, as determined by the Secretary of Health and Human Services (the Secretary), for up to two years; and participates in a fellowship training program or a full-time educational activity which is directly related to the health profession for which the borrower prepared at the institution, and is engaged in by the borrower within 12 months after completion of the borrower’s participation in advanced professional training described in (C) above or prior to the completion of the borrower’s participation in such training, for up to two years

Eligibility requirements for the HPSL:

To apply for the HPSL:

                     Option 1 (preferred method):
                           Use the IRS Data Retrieval Tool (IRS DRT) that is part of FAFSA on the Web. 

                     Option 2:
                           Provide parental 2015 IRS Tax Return Transcript.
                           Order a Tax Return Transcript or call 1-800-908-9946.


Loans for Disadvantaged Students (LDS)

The Loans for Disadvantaged Students program is a federal loan made available by the Department of Health and Human Services.  This loan program provides long term, low interest rate loans to full-time, financially needy students from disadvantaged backgrounds enrolled in the Doctor of Medicine (MD) or Doctor of Dental Surgery (DDS) program.  When compared to other federal student loans and private loans, the Loans for Disadvantaged Students provide a significant savings.

The interest rate is 5% and begins to accrue following a one-year grace period after you cease to be a full-time student.

The loan offers deferment of principal and interest whilst the borrower:

  1. Serves on active duty as a member of a uniformed service of the United States, for up to three years;
  2. Serves as a volunteer under the Peace Corps Act, for up to three years;
  3. Pursues advanced professional training, including internships and residencies;
  4. Pursues a full-time course of study at a health professions school eligible for participation in the Health Professions Student Loan program;
  5. Leaves the institution, with the intent to return to the institution as a full-time student, to engage in a full-time educational activity which is directly related to the health profession for which the Borrower is preparing, as determined by the Secretary of Health and Human Services (the Secretary), for up to two years; and
  6. Participates in a fellowship training program or a full-time educational activity which is directly related to the health profession for which the borrower prepared at the institution, and is engaged in by the borrower within 12 months after completion of the borrower’s participation in advanced professional training described in (C) above or prior to the completion of the borrower’s participation in such training, for up to two years

Disadvantaged Student Guidelines:

https://www.uth.edu/sfs/financial-aid/disadvantaged-student-guidelines.htm

To apply for the LDS:

                     Option 1 (preferred method):
                           Use the IRS Data Retrieval Tool (IRS DRT) that is part of FAFSA on the Web. 

                     Option 2:
                           Provide parental 2015 IRS Tax Return Transcript.
                           Order a Tax Return Transcript or call 1-800-908-9946.

Nurse Faculty Loan Program (NFLP)

The Nurse Faculty Loan Program is a non-need based loan for students enrolled in the Doctoral Nursing curriculum.   The loan carries a 3% fixed interest rate.  If the student fails to complete the course of study or establish full-time employment as faculty following graduation from the program, the loan will bear interest on the unpaid balance at the prevailing market rate.  Prevailing market rate is determined by the Treasury Department and is published quarterly in the Federal Register. 

Eligibility requirements for the NFLP Loan:

 To apply for the NFLP Loan:

 Students must complete the Free Application for Federal Student Aid (FAFSA) to be considered for this loan.

 Repayment Information:


FEDERAL STUDENT LOAN OMBUDSMAN 

While students are encouraged to resolve disagreements regarding federal student loan issues with the loan servicer, there are some instances when a neutral third party is necessary to seek a fair and equitable solution. In such cases, students may contact the Federal Student Aid Ombudsman Group to help resolve disputes and mediate federal loan program related conflicts.

Online

Phone

Fax

Mail

Federal Student Aid Ombudsman Group

1 (877) 557-2575

(606) 396-4821

FSA Ombudsman Group

P.O. Box 1843

Monticello, KY 42633


INSTITUTIONAL LOANS

American Medical Association Educational Research Foundation Loan (AMA)

The American Medical Association-Educational Research Foundation Loan is a 5% interest loan for students pursing a Doctor of Medicine (MD) degree.  The award is based on a student's financial need.

Eligibility requirements for the AMA Loan:

 To apply for the AMA Loan:

 Students must complete the Free Application for Federal Student Aid (FAFSA) to be considered for this loan.

 Repayment information:

Ella Kate Wallace Ralston Loan (Ralston)

The Ella Kate and Wallace Ralston Nursing Student Loan is an institutional loan fund administered by the Office of Student Financial Services for students enrolled in the Doctor of Medicine (MD) or Nursing program.  This loan has a 7.5% interest rate and is awarded based on a student's financial need.

Eligibility requirements for the Ralston Loan:

 To apply for the Ralston Loan:

 Students must complete the Free Application for Federal Student Aid (FAFSA) to be considered for this loan.

 Repayment information:

Ellwood Foundation Loan (Ellwood)

The Ellwood Foundation Loan is administered by the Office of Student Financial Services and is awarded to students pursuing a Doctor of Medicine (MD) degree.  The Ellwood Foundation Loan carries a five percent (5%) interest rate.  Awards are based on a student's financial need.

 Eligibility requirements for the Ellwood Loan:

 To apply for the Ellwood Loan:

 Students must complete the Free Application for Federal Student Aid (FAFSA) to be considered for this loan.

 Repayment information:

Robert Wood Johnson Loan (RW Johnson)

The Robert Wood Johnson Student Loan is a 3% interest loan awarded to Doctor of Medicine (MD) or Doctor of Dental Surgery (DDS) students. The awarding of this loan is based on a student's financial need.  Funds are institutional and are administered by the Office of Student Financial Services.

 Eligibility requirements for the RW Johnson Loan:

 To apply for the RW Johnson Loan:

 Students must complete the Free Application for Federal Student Aid (FAFSA) to be considered for this loan.

 Repayment information:

For more information regarding Federal or Institutional loan programs, please contact the Office of Student Financial Services.