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.

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

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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

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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%

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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.

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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. Schools cannot process this loan until the start of the state fiscal year which begins September 1st. More details on this program are available at www.collegeforalltexans.com.

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.

Loan Repayment

Federal School Code: 003661