The Federal Direct Loan program is provided by the US Department of Education and is available for undergraduate and graduate degree-seeking students who are enrolled at least half-time. Students are offered Federal Direct Loans by filling out the FAFSA and having it sent to UT San Antonio. There are two types of Federal Direct Loans that students may be offered. Typically, these loans do not go into repayment until after a student graduates or stops attending at least half-time for six months or more. Find out the current interest rates for Federal Direct Loans from Federal Student Aid. The federal government charges an origination fee for Subsidized and Unsubsidized loans, and that amount is taken out of the disbursed amount. The origination fee charged for these loans changes, so for the most up to date rate, visit Federal Student Aid’s site.

Federal Direct Subsidized Loans

The Federal Direct Subsidized Loan is available to undergraduate students who demonstrate need as determined by the FAFSA. The interest accrued on these loans is paid for by the government while the student is enrolled. There are time limits designating how long a student can receive a subsidized loan. Find out more about these time limits. The maximum an undergraduate can be offered in a subsidized loan in a year ranges from $3,500 to $5,500 based on your class level.

Federal Direct Unsubsidized Loans

The Federal Direct Unsubsidized Loan is available to undergraduate students who have filed a FAFSA. Interest accrues on these loans while the student is in school.

Federal Direct Loan Limits

There are limitations set by Congress about how much a student can borrow in these loans both per year and during the course of study. Find out the annual and total loan limits on the Federal Student Aid’s website.

Steps to Receive a Loan

In order for a student to borrow a loan, the following steps must be completed:

• Accept a full or partial amount of loans on the student portal myUTSA account
• Complete Federal Direct Entrance Counseling online at www.studentaid.gov
• Sign an Electronic Master Promissory Note (EMPN) for your loans at www.studentaid.gov with your FSA ID

Repayment Options

Both of these loan programs offer multiple repayment plans from 10 to 30 years. The interest rate can vary, depending on the year in which the loan is taken, but will typically be no more than 6.8%. Find out more about repayment plans on Federal Student Aid’s website.

Loan Proration

Loan proration impacts undergraduate students applying for fall graduation who are receiving Federal Direct Stafford Loans.

Federal regulations require schools to prorate the Federal Direct Stafford Loan amounts for graduating undergraduate students when their final period of enrollment is less than a full academic year. The loan limit proration determines the maximum loan amount that a student may borrow for the final term of study based on the degree they are earning.

Graduating undergraduate students who are only attending the fall semester of the academic year will have their Federal Direct Stafford Loans prorated based on the number of credit hours they are enrolled.

Note: Graduate and professional students are excluded from the loan proration requirement

Loan Proration for Graduating Borrowers

Please note that the actual loan amount may be less if a student has reached their annual or lifetime aggregate loan limits prior to the fall semester.

Maximum Loan Amounts for Fall Semester

Dependent Student

Independent Student

Eligibility for Loan Increase After Classification Change

A student may be eligible for an increase in Federal Direct Loan eligibility if their academic classification changes during the aid year. Once the student advances to a higher grade level—for example, from Freshman to Sophomore—their annual loan limit may increase, and the Financial Aid Office can adjust the direct loan amount based on the new classification and remaining eligibility.

To request a revision of your loan eligibility based on your classification change, please complete the Loan Change Request form for the current aid year here https://onestop.utsa.edu/forms/financial-aid/

The Federal Direct Parent PLUS Loan is a federal loan available to parent of dependent, undergraduate students. If your student needs additional funding to help with the cost of college, parents can apply for this credit-based loan at www.studentaid.gov. Find out more about the current interest rate for Federal Direct Parent PLUS Loans and the origination fee charged for the loan. Please review repayment options for parents who borrow this loan.

How to Apply for a Federal Direct Parent PLUS Loan

Applying for a Parent PLUS Loan is simple. Biological, adoptive or step parents can apply for a Parent PLUS loan as long as their undergraduate student has a FAFSA on file. Here are the steps involved:

• Go to www.studentaid.gov
• Click on the “Log in to Start” option
• Select borrower type as “Parent Borrower” and award year
• Complete each section listed (student information, borrower information, etc.)
• Agree to a credit check and view your instant decision

After you receive your credit decision, UT San Antonio will be notified of the outcome. If approved, your loan will be certified for the amount you requested. If denied, students will be offered an increased Federal Direct Unsubsidized Loan. Parents must also electronically sign a Master Promissory Note (MPN) on studentloans.gov. Click the link to “Complete Loan Agreement” and choose the option “PLUS MPN for Parents.

Typically, the Financial Aid Office will begin to certify the Federal Direct Parent PLUS loan in late May for the upcoming fall semester.

The Federal Direct Graduate PLUS Loan is a federal loan available to graduate students. If students need additional funding to help with the cost of college, they can apply for this credit-based loan at www.studentaid.gov. Find out more about the current interest rate for Federal Direct Graduate PLUS Loans and the origination fee charged for the loan. Please review repayment options for students who borrow this loan.

How to Apply for a Federal Direct Graduate PLUS Loan

Applying for a Graduate PLUS Loan is simple. The first step is to have a FAFSA on file. After graduate students have exhausted Federal Direct loan limits, any remaining cost can be covered by the Federal Direct Graduate PLUS loan. Here are the steps involved with applying for this loan:

• Go to www.studentaid.gov
• Click on the “Log in to Start” option
• Select borrower type as “Graduate/Professional Student Borrower” and award year
• Complete each section listed borrower information, etc.)
• Agree to a credit check and view your instant decision

After you receive your credit decision, UT San Antonio will be notified of the outcome. Your loan will be certified for the amount you requested if approved. Typically, the Financial Aid Office will begin to certify Graduate PLUS loan in late May for the upcoming fall semester.

The College Access Loan (CAL) is a non-need based state loan program administered by the Texas Higher Education Coordinating Board (THECB). The CAL loan is only available to degree-seeking students who are Texas residents. The CAL loan is considered another type of private loan that is intended to supplement traditional financial aid programs. We encourage you to consider your options for Federal financial aid loans before applying for an alternative loan. Find out more about the interest rate and fees associated with borrowing this loan on the state’s website.

Student Eligibility Requirements

• Students must be enrolled at least half-time per semester
• Students must be making Satisfactory Academic Progress (SAP) every semester
• Students MUST be Texas Residents or classified as HB 1403 in order to be eligible to receive the CAL loan
• Federal Direct Loan eligibility will be taken into consideration whether or not the student has accepted or declined the loans
• Students need to be credit-worthy or have a credit-worthy co-signer in order to pursue a CAL loan

How to Apply

To apply for a CAL, follow these steps:

• Students must log in to the THECB website and complete the CAL Loan application

The Future Occupations & Reskilling Workforce Advancement To Reach Demand (FORWARD) Loan Program is a non-need-based state loan program administered by the Texas Higher Education Coordinating Board (THECB). The FORWARD loan is only available to degree-seeking students who are Texas residents. The FORWARD loan is considered another type of private loan that is intended to supplement traditional financial aid programs. We encourage you to consider your options for Federal financial aid loans before applying for an alternative loan. Find out more about the interest rate and fees associated with borrowing this loan on the state’s website.

Student Eligibility Requirements

• Students MUST be Texas Residents to be eligible to receive the FORWARD loan
• Students must be registered with Selective Service, or be exempt
• Students must be making Satisfactory Academic Progress (SAP) every semester
• Students need to be credit-worthy or have a credit-worthy co-signer to pursue a FORWARD loan
• Student must NOT exceed manageable loan debt calculated by the THECB.
• Student must be enrolled in a High-Demand Credential program that the student will be able to complete in two years or less
• Federal Direct Loan eligibility will be taken into consideration whether or not the student has accepted or declined the loans

How to Apply

To apply for FORWARD, follow these steps:

• Students must log in to the THECB website and complete the FORWARD Loan application.

The UT San Antonio Clinical Teaching Education Loan Forgiveness Program was established to help student teachers with expenses during the extremely important semester of student teaching. All students approaching their student teaching semester are eligible to apply. Priority will be based on financial need and critical shortage field status. Critical shortage fields are deemed by the state to be Math, Science, Special Education, Languages other than English, and ESL/Bilingual Education.

Requirements to Apply for the Loan

Students must meet the following requirements to be eligible to receive the UT San Antonio Clinical Teaching Education Loan Forgiveness:

• Be enrolled in the Clinical Teaching course for the semester in which they apply for the loan.
• Completed the Free Application for Federal Student Aid (FAFSA) and be packaged for financial aid for the academic semester they are applying for the loan
• Submit the UT San Antonio Education Loan Forgiveness Program Application to the Office of Professional Preparation and Partnerships
• Must not have received the UT San Antonio Education Loan Forgiveness in a prior year
• Students must meet Satisfactory Academic Progress requirements.

How to Apply

Students can obtain and download the UT San Antonio Education Loan Forgiveness Program Application on the Clinical Teaching website.

Students will be able to upload their completed application to the Clinical Professional Experiences rolling Blackboard by the deadline for the appropriate term. Please refer to the Clinical Teaching’s website for the deadline of when the application must be submitted for the correct term.

Any applications that are submitted incomplete will delay the process of being offered this funding.

Private loans (sometimes called alternative loans) are educational loans that are available through private lenders. They are not part of the federal government loan program and are intended to supplement traditional financial aid programs. These loans require a student to be credit-worthy or have a credit-worthy co-signer. Terms, interest rates and fees vary by lender. Students are encouraged to research various alternative loan options and select the one that best fits their circumstances. Applications may need to be requested from the lender, but most are available for students to fill out online.

Before considering or applying for an alternative loan, Financial Aid & Scholarships strongly encourages you to apply for federal aid by completing the Free Application for Federal Student Aid (FAFSA) (studentaid.gov). Federal student loans often provide better interest rates, terms and flexibility in repayment compared to alternative loans.

You are free to select any private lender offering alternative loans. While UT San Antonio does not recommend any specific lenders for alternative loans we do recommend you compare loans from several lenders to find the best interest rate, terms and repayment options for your situation.

Alternative Loan Application & Processing Times

When to Apply

These are the timeframes we recommend starting an alternative loan application:

• Fall/Spring or Fall only loans — May
• Spring loan — November
• Summer loan — April

Payment Period for Alternative Loans

When applying for an alternative loan, you will need to let the lender know the timeframe you want the loan for also known as the payment period. Use the following dates when applying:

• Fall/Spring loan: August – May
• Fall loan: August – December
• Spring loan: January – May
• Summer loan: May or June* – August

*Depends on which summer term you plan to enroll and when those classes start.

Loan Certification

Once you’ve applied and your alternative loan has been approved, your lender will send UT San Antonio the loan to be certified. The certification process typically takes two weeks, however during peak times (late July, August, December and January) it increases to 4-8 weeks. Your alternative loan can only be approved up to the Cost of Attendance.  If your alternative loan has not been certified and the payment deadline is nearing, you will need to make other payment arrangements to prevent late fees or being dropped for non-payment.

Right to Cancel Period & Disbursement

Once the loan has been certified by UT San Antonio, information is sent over to the lender and you’ll have loan disclosures to sign. Once the third disclosure has been signed, there is a Right to Cancel Date where money cannot be sent to UT San Antonio until the date has passed. You will need to check with your lender for this date. Once this period is over, the lender will send the funding to UT San Antonio and is applied to your UT San Antonio bill within 2-3 business days*.

*Funding cannot be applied to the UT San Antonio bill until the term’s disbursement date.