Loans

Loans are considered part of the financial aid program. A loan is money you can borrow and must pay back with interest. If you decide to borrow a loan, make sure you understand who you are borrowing from and the terms and conditions of the loan. Student loans can come from federal, state, or private resources such as a bank or financial institution. Please refer to Accepting Financial Aid for instructions on accepting individual student loans.

Federal Direct Subsidized Loan (SUB Loan)

Available to undergraduate students who demonstrate financial need and are enrolled for 6 semester credit hours or more. This loan is deferred (payment not required) as long as the student is enrolled for 6 semester credit hours or more. The interest on the loan is paid by the United States Government during deferment. This interest rate is variable and determined by the federal government every July 1st. Amounts shown are based on full time enrollment and may be reduced if a student is enrolled less than full time. If a SUB Loan eligible student chooses to borrow a student loan, the US requires the full amount of the SUB Loan be borrowed before any portion of the Federal Direct Unsubsidized Loan be borrowed.

Level Fall Spring Yearly Maximum Maximum Total
Freshman $1,750 $1,750 $3,500 $23,000
Sophomore $2,250 $2,250 $4,500 $23,000
Junior / Senior / Certification $2,750 $2,750 $5,500 $23,000
Federal Direct Unsubsidized Loan (UnSUB Loan)

Available to undergraduate and graduate students who show half time enrollment or more. This loan is deferred (payment is not required) as long as the student shows half time enrollment or more. The interest on this loan accrues (accumulate) and be capitalized (added to principle). The interest rate is variable and determined by the United States Government every July 1st.

Dependent students can only borrow $2,000 of this loan, only after they have taken the maximum amount of their Federal Direct Subsidized Loan.

Independent student use the chart to determine yearly eligibility:

Level Fall Spring Yearly Maximum Maximum Total
Freshman $3,000 $3,000 $6,000 $34,500
Sophomore $3,000 $3,000 $6,000 $34,500
Junior / Senior / Certification $3,500 $3,500 $7,000 $34,500
Graduate $10,250 $10,250 $20,500 $138,500
Federal Perkins Loan (Perkins)

Available to undergraduate and graduate students. However, due to very limited funding, previous recipients are given priority for this loan. The student must show half time enrollment to receive the Perkins loan. The loan is deferred (payment not required) during the time the student is enrolled half time. The interest rates is 5%

Federal Direct PLUS Loans (PLUS)

Available to dependent student’s parent(s) and graduate students who do not have an adverse credit history. Students must show half time enrollment to receive the PLUS. Graduate students enrolled half time will have their PLUS loan put on deferment (payment not required). However, a parent who borrowed on behalf of their child will be required to make payments to the PLUS loan once the loan is fully disbursed (paid to the institution). The interest rate is variable and determined by the federal government every July 1st.

Amounts for the PLUS loan are based on individual student’s eligibility.

Texas-B-On-Time Loan (Be-On-Time)

Available to undergraduate students. The student must be a Texas resident, and a graduate of a Texas public or private high school under the recommended high school curriculum. Students must be enrolled full time to receive the Be-On-Time loan. The loan is deferred (payment not required) while the student is enrolled half time. The loan can be forgiven if the student graduates with a GPA of 3.0 or above, and is no more than 6 semester credit hours over their degree plan requirement.

College Access Loan (CAL)

Available to undergraduate and graduate students. Student must be a Texas resident and not have an adverse credit history. Students must show half time enrollment to receive the CAL. The loan is deferred (payment not required) while the student is enrolled half time. The interest rate is 5.25% and is not capitalized.

Alternative/Private Loan

Available to all students. Loans are not awarded by UTEP. Students must apply through a private source.

Federal Student Loan Discharge Information

The National Student Loan Data System indicates that one or more of your federal student loans have been discharged. The Institution is responsible for collecting and maintaining certification and signed statements as a requirement of the federal student loan program.

If you do not intend to borrow any additional Federal loans, you are required to complete and sign a Loan Refusal due to Discharge form that will stop the awarding of federal student loans. This issue must be resolved prior to being awarded for the current or future academic year. Loan Refusal Due to Discharge.

If you wish to borrow a new federal loan, please refer to the following section for details on documentation that must be submitted.

Total Permanent Disability Discharge Borrower Responsibilities

1. Provide Physician Certification

The borrower must provide the school where he or she is going to receive the new loan or TEACH Grant with a physician's certification that the borrower is able to engage in "substantial gainful activity."

"Substantial gainful activity" means that the borrower must be able to attend school, successfully complete a program of study, and secure employment, which will enable the borrower to repay the loan(s) or fulfill the TEACH Grant service obligation. Note: Only one copy of a physician's certification is needed for subsequent loans or TEACH Grants if the borrower remains at the same school.

2. Provide notarized statement to the School

For each new academic year that a federal loan or TEACH Grant is received, the borrower must submit a signed notarized statement. Statement must acknowledge that the new loan or TEACH Grant, plus any loan or TEACH Grant that was conditionally discharged, cannot be discharged in the future on the basis of any impairment present when the new loan or TEACH Grant is made, or at the time the borrower applied for a prior Total Permanent Disability discharge unless that impairment substantially deteriorates so that the borrower is once again totally and permanently disabled.

The borrower must submit a signed notarized Discharge Certification to the school he or she attends every academic year. Discharge Certification

Conditional Discharge Borrower Responsibilities

1. Cancel Pending Discharge Requests:

Before the borrower can receive new loans or TEACH Grants, he or she must cancel all pending discharge requests. The borrower must sign an acknowledgement provided by the Disability Discharge Loan Servicing Center that the loans and/or TEACH Grants will be removed from conditional discharge status. The borrower must submit a copy of this written acknowledgement to his or her school.

2. Provide Signed Statement to Disability Discharge Loan Servicing Center

The borrower should send the Disability Discharge Loan Servicing Center a request in writing stating that he or she would like his or her loan(s) and/or TEACH Grant withdrawn from conditional discharge and returned to servicing. Call the Conditional Disability Discharge Tracking System (CDDTS) at 1-888-869-4169.

3. Once a response is received from the Disability Loan Servicing Center verifying the conditional discharge cancellation, a copy must be submitted to the Office of Student Financial Aid.

Federal School Code: 003661