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Loans

Stafford (William D. Ford Federal Direct) Loans provide low-interest loans for students and parents to help pay for the cost of a student's college education. The lender is the United States Department of Education, rather than a bank or other financial institution. Direct Loans are guaranteed by the federal government.

Before you decide to accept a loan offer, be sure to develop a budget to make sure you borrow only what you need. If you are a first-time borrower at Texas A&M University - Central Texas, please visit studentloans.gov for more information about your Direct Loans, including interest rate information. For more student loan information (interest rates, repayment and more), visit the Department of Education.

Federal Direct Student Loans

As an undergraduate student loan borrower, you may be awarded a subsidized (need based) or unsubsidized (non-need based) loan depending on your financial need. As a graduate student loan borrower, you may only be awarded an unsubsidized loan (non-need based) loan. If you are awarded a subsidized loan (i.e., an undergraduate student), interest will not accrue on your loan while you are enrolled at least half-time. If you are awarded an unsubsidized loan, you will be responsible for the interest while in school. You will receive quarterly interest statements on your unsubsidized loan from your servicer. It is recommended that you pay this interest every quarter. If you do not, the interest will be added to your loan amount upon entering repayment, which will result in your paying interest upon interest.

Annual Loan Limits - Dependent
Dependent Undergraduates Subsidized Unsubsidized Total
Freshman $3,500 $2,000 $5,500
Sophomores $4,500 $2,000 $6,500
Juniors and Seniors $5,500 $2,000 $7,500
Annual Loan Limits - Independent
*Independent Undergraduates Subsidized Unsubsidized Total
Freshman $3,500 $6,000 $9,500
Sophomores $4,500 $6,000 $10,500
Juniors and Seniors $5,500 $7,000 $12,500
Graduates - $20,500 $20,500

*Includes students whose parents are unable to borrow under the PLUS (parent loan) program.

Aggregate Loan Limits
Dependent Undergraduates $31,000 (except students whose parents are unable to obtain PLUS Loans)—no more than $23,000 of this amount may be in subsidized loans
Independent Undergraduates $57,500—no more than $23,000 of this amount may be in subsidized loans.
Graduates $138,500—no more than $65,500 of this may be in subsidized loans. The graduate debt limit includes Stafford loans received for undergraduate study.

Federal Direct Parent Loans

If you are a dependent student, your parent may also be offered a Direct Loan. Federal Direct Parent (PLUS) Loans are unsubsidized loans for the parents of dependent students. PLUS loans help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods. Parents of dependent students may apply for a Federal Direct Parent Loan (PLUS) to help pay their child’s education expenses as long as specific eligibility requirements are satisfied. To be eligible for a PLUS Loan, you must not have an adverse credit history, which the Department will check for when you apply for the loan. If interested, please have your parent complete the online Parent Loan Application.

If the loan is approved, your parent must complete a master promissory note, if a first-time borrower, at studentloans.gov. You will also need to submit a PLUS Loan Authorization Form to our office so your parent loan may disburse.

If the loan is denied, the student is eligible to request an unsubsidized loan (amount based on your student’s classification). For more information, please visit the Department of Education.