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Federal Loans

NEW!!  2009-2010 Federal Direct Loan Program

To learn about the Federal Direct Subsidized, Unsubsidized Parent PLUS and Graduate PLUS Loan Programs, we are providing a Direct Loan Website Link: http://www.direct.ed.gov/student.html.   Students and parents can explore the site for information about the Direct Loan Program, including helpful publications and tools to help manage their Direct Loans.

Steps to Complete the Loan Application Process

1.  Students interested in applying for student loans must complete the Free Application for Federal Student Aid (FAFSA).  On the FAFSA application, answer yes to the question that asks if you are interested in student loans, OR, if you marked "no" to the question that asks if you are interested in Stafford loans, complete the Federal Stafford Loan Request Form and submit it to the Office of Financial Aid. 

If necessary, to request additional loan funds later in the year, complete a Federal Student Loan Request Form and return it to the Office of Financial Aid. It is recommended that the student should contact a Financial Aid Counselor prior to completing this form.

 2.  Once awarded, the student will need to accept, modify or decline the loan awards in MyUHV Self-Service (http://www.uhv.edu/myMyUHV/)

3.  New student loan borrowers are required to complete an Entrance Counseling session:

  • Helps you understand your rights and responsibilities as a student loan borrower
  • Provides information and terms to help you make the right choices

     The website to complete the entrance counseling session is https://www.dl.ed.gov/borrower/EntrCounselingStart.do?      cmd=initializeContext.

4.  All student loan borrowers attending UHV will need to complete a Direct Loan Electronic Master Promissory Note located at https://dlenote.ed.gov/empn/index.jsp. Please read "What to Expect" at the following website: https://dlenote.ed.gov/empn/whattoexpect.jsp in order to understand the process of completing a Master Promissory Note.

When student borrowers graduate, withdraw from a term or drop below 1/2 time enrollment, he or she is required to complete an exit counseling session.  The website to complete the exit counseling session is https://www.dl.ed.gov/borrower/CounselingSessions.do?cmd=initializeContext.  A Return of Title IV Funds will be calculated if a student withdraws, which may result in a balance owed to UHV.

Step-By-Step Tutorial Instructions for Completing the Online Direct Loan Master Promissory Notes 

Save the executable file (.exe) to a directory on your computer.  Open the executable and follow the instructions.

By clicking on the following link, you can complete a Subsidized/Unsubsidized Loan eMPN simulation. http://www.ifap.ed.gov/codcbt/attachments/CompletingaSubsidizedUnsubsidizedEMPN.exe

By clicking on the following link, you can complete a Graduate PLUS Loan eMPN simulation. http://www.ifap.ed.gov/codcbt/attachments/CompletingaGraduatePLUSEMPN.exe

By clicking on the following link, you can complete a Parent PLUS Loan eMPN simulation.  http://www.ifap.ed.gov/codcbt/attachments/CompletingaParentPLUSEMPN.exe

5.   You have the right to cancel all or a portion of the loan(s) by contacting our office within 14 days of the date the student was notified of his/her loan disbursement. The funds will be returned to your lender by either electronic funds transfer (EFT) or check.

Loan Consolidation

If a student is interested in consolidating his or her FFELP and Direct loan portfolio, the Direct Loan Web site is http://loanconsolidation.ed.gov/index.html.

 

How to Apply for Federal Parent PLUS Loans

  1. Complete and submit the Federal Parent PLUS Loan Request Form.
  2. Accept or Decline the loan award in MyUHV.
  3. Complete the Master Promissory Note at https://dlenote.ed.gov/empn/index.jsp

How to Accept A Parent PLUS Loan Award

You will need to log into MyUHV / UHV Self Service / Financial Aid / Accept or Decline Awards. WEB LINK: http://www.uhv.edu/student_solutions/.

See below for more details about the Parent PLUS Loan program.

How to Apply for a Graduate PLUS Loan

  1. Complete and submit the Federal Graduate PLUS Loan Request Form.
  2. Accept or Decline the loan award in MyUHV.
  3. Complete the Master Promissory Note at https://dlenote.ed.gov/empn/index.jsp

How to Accept A Graduate PLUS Loan Award

Award notices are sent to your UHV email account. You will need to log into MyUHV / UHV Self Service / Financial Aid / Accept or Decline Awards. Check the appropriate box. WEB LINK: http://www.uhv.edu/student_solutions/

See below for more details about the Grad PLUS Loan Program.

Loan Disbursement Process

The loans are disbursed after enrollment and eligibility verification is reviewed on a student by student basis. Loans will be credited toward the student’s university account after all required documentation is received and awards have been accepted, declined, or modified in MyUHV.  The loan will be credited toward the student’s account no earlier than the first day of class. Any resulting credit balance will be issued according to the mode of delivery the student chooses when activating his/her Jaguar Card.  Modes of delivery include funds being applied to the Higher One Account (Jaguar Card), funds electronically sent to the student's bank account of choice, or a check be mailed to the address on file in the student's Higher One profile.

The lenders may disburse the loan in two equal payments if the student anticipates enrolling for more than one semester. If the student is only enrolling in one semester, the student may receive the funds in two equal disbursements during the semester.

You have the right to cancel all or a portion of the loan(s) by contacting our office within 14 days of the date the student was notified of his/her loan disbursement. The funds will be returned to the Department of Education.

Other Important Loan Information

Notification will be mailed to the student making them aware of when the loan was credited to their account and how much was disbursed. The student has 14 days from the time they receive the notification to request all or a portion of the funds to be canceled by contacting the Office of Financial Aid or the Department of Education Direct Loan Servicing Center.

Students can access information about their student loan history and Federal Grant history at the following site: http://www.nslds.ed.gov. Students need a personal identification number (PIN) prior to accessing this information. Students who do not currently hold a PIN number can go to the web site: http://www.pin.ed.gov to obtain one.

When a loan recipient withdraws, drops below half-time, or graduates, he or she must complete an Loan Exit Counseling Session. This can be done by completing the Exit Counseling on the web at the following address: http://mappingyourfuture.org/ or https://www.dl.ed.gov/borrower/CounselingSessions.do?cmd=initializeContext. A Return of Title IV Funds will be calculated if a student withdraws, which may result in a balance owed to UHV.

Maximum Annual Loan Limits Chart- Federal Subsidized and Unsubsidized Direct Stafford Loans as of July 1, 2008

  Dependent Undergraduate Student Independent Undergraduate Student Graduate/Professional Student
1st Year $3,500 subsidized $2,000 unsubsidized $9,500—No more than $3,500 of this amount may be in subsidized loans. $20,500—No more than $8,500 of this amount may be in subsidized loans.
2nd Year $4,500 subsidized $2,000 unsubsidized $10,500—No more than $4,500 of this amount may be in subsidized loans.
3rd and 4th Years (each) $5,500 subsidized $2,000 unsubsidized $12,500—No more than $5,500 of this amount may be in subsidized loans.
Maximum Total Debt from Stafford Loans When You Graduate $31,000 No more than $23,000 of which can be subsidized $57,500 No more than $23,000 of this amount may be in subsidized loans. $138,500—No more than $65,500 of this amount may be in subsidized loans.
The graduate debt limit includes Stafford Loans received for undergraduate study.

The student does not have to pay the interest on the subsidized loan until 6 months after the student graduates, withdraws, or drops below half-time. Students must pay the interest on the unsubsidized loans immediately unless the student chooses to capitalize the interest payments. Capitalizing the interest increases the amount you will eventually have to repay.

Interest Rate Table
Fixed Stafford Loan rates disbursed on or after July 1, 2009

  • Undergraduate Subsidized Loans - 5.6%
  • Graduate Subsidized and all Unsubsidized Loans 6.8%

The subsidized loan cannot be more than the cost of education at one school, minus Expected Family Contribution and other financial aid received. The student’s eligibility equals the amount that remains or up to the maximum dollar figure posted in the loan application packet. The unsubsidized loans cannot be more than the cost of education at one school, minus other financial aid or up to the maximum dollar figure posted in the loan application.

If the student’s enrollment status changes, the loan amount may have to be recalculated. Information about deferments and consolidation of loans is available in the Office of Financial Aid or on the Texas Guaranteed Student Loan Corporation's website (http://www.tgslc.org) or the Direct Loan Servicing website.

Federal Parent Loans for Undergraduate Students (FPLUS)

Parents of dependent undergraduate students may borrow funds under this loan program on behalf of the student. Parents can borrow funds up to the cost of education minus other financial aid the student has been awarded. Parents must have a good credit history to qualify. Lending institutions, along with a guarantee agency, administer the loan program.

Payments begin within 60 days from the date of disbursement, with $50 minimum payments per month. Loan regulations allow at least 5, but no more than 10, years to repay this loan. The parent borrower may prepay the whole or part of the loan at any time without penalty, or may defer payments of the principal if the student is attending school full-time. Please note that although the principal may be deferred, the interest continues to accrue or must be paid. PLUS loans are credited to the students account the same way subsidized and unsubsidized loans are.

MyUHV shows the loan amounts the student is eligible for after the student's loan eligibility has been computed. The student must accept/reject all or part of the loan(s) by logging into MyUHV. The loan will be disbursed to the student's account once eligibility is reviewed.

Interest Rate Table
Fixed rate for Parent and Grad PLUS loans disbursed on or after July 1, 2006 - 8.5%

Federal Graduate PLUS Loan

Graduate students who have been awarded the maximum Stafford loan award for the academic year ($20,500) and have not been awarded aid equal to the amount of his/her Cost of Attendance,or has borrowed his/her aggregate loan amount of $138,500, may have the opportunity to borrow additional funds through the Graduate PLUS Loan Program. Graduate students are subject to credit-worthiness standards. If the student does not pass the credit check, they may have the option to have an endorser for the loan. The interest rate is the same as the Parent PLUS loan listed above.

MyUHV shows the loan amounts the student is eligible for after the student's loan eligibility has been computed. The student must accept/reject all or part of the loan by logging into MyUHV.The loan will be disbursed to the student's account once eligibility is reviewed.

Graduate students awarded the GRAD PLUS Loan will have a 60 day grace period after the last disbursement is made. If the student is enrolled at least half-time, the student can apply for an in-school deferment or begin making the monthly payment.

Sample Repayment Schedules

Federal student loans must be repaid to the lender or servicers of the borrowed loan funds over a period of 10 years unless other arrangements are made with the lender. Students can set up several types of repayment schedules:

  1. Standard Monthly Repayment - same payment amount each month.
  2. Graduated Repayment - smaller payment amounts first and will gradually increase over time.
  3. Income-Sensitive Repayment - the plan ties the size of your monthly payment to your income level.
  4. Prepayment - you can make extra payments to pay off the entire loan balance at any time.
  5. Consolidation - Students can refinance his/her eligible Federal Loans. The interest rate is determined by the weighted average of all loans included in the refinance. Advantages of consolidating include a fixed interest rate for the term of the loan and possibly a longer repayment period.

Monthly Repayment Example: If you borrow $20,000 in student loans during your college career, your monthly payment would be approximately $232 per month.

STATE LOANS

Texas B-On-Time Loan Program

The purpose of the Texas B-On-Time Loan program is to provide eligible Texas students no-interest loans to attend colleges and universities in Texas. If the student meets specified goals, the entire loan amount can be forgiven upon graduation. Your institution's financial aid office will determine if you are eligible. If this loan is offered to you, the financial aid office will instruct you to complete an application and promissory note online.

ELIGIBILITY REQUIREMENTS

 -- Applicants must:
    Have completed a FAFSA and be eligible to receive federal financial aid
    Be enrolled full time in an undergraduate degree or certificate program at an eligible institution and
    Be a Texas resident or be entitled to pay resident tuition rates as a dependent child of a member of the U.S. armed forces
                     and
    Have graduated in the 2002-2003 academic year or later from a high school operated by the U.S. Department of Defense or under the recommended high school program from a public or accredited private high school in Texas
                     or
    Have earned an associate’s degree from an eligible institution no earlier than May 1, 2005
Persons who have earned a bachelor’s degree are not eligible for B-On-Time loans.

 

ANNUAL LOAN AMOUNTS FOR 2008-2009

    4-year public and private institutions: $2,640/semester ($5,280/year)
    2-year public and private junior colleges: $865/semester ($1,730/year)
    Public technical colleges: $1,325/semester ($2,650/year)
A 3% origination fee will be deducted from the loan proceeds.

 

ANNUAL LOAN AMOUNTS FOR 2009-2010

    4-year public and private institutions: $3,040/semester ($6,080/year)
    2-year public and private junior colleges: $890/semester ($1,780/year)
    Public technical colleges: $1,340/semester ($2,680/year)
A 3% origination fee will be deducted from the loan proceeds.

 

RENEWAL ELIGIBILITY

To maintain eligibility for future disbursements, the student must:
    In the 1st Academic Year - make satisfactory academic progress toward a degree or certificate as determined by the institution.
    In the 2nd and Subsequent Academic Years - complete at least 75 % of the semester credit hours attempted in the most recent academic year and have a cumulative GPA of at least a 2.5 on a 4.0 scale (or the equivalent) on all course work previously attempted at institutions of higher education.

A student may not receive B-On-Time loans for more than 150 hours.
 

FORGIVENESS REQUIREMENTS

A Texas B-On-Time Loan shall be forgiven if the student receives an undergraduate degree or certificate from an eligible institution and the student either:

 

    graduated with a cumulative GPA of at least a 3.0 on a four-point scale, within:
           4 calendar years after the date the student initially enrolled in an eligible institution,
           5 calendar years after the date the student initially enrolled in an eligible institution, if the degree is in architecture, engineering, or any other program determined by the board to require more than 4 years to complete; or
           2 calendar years after the date the student initially enrolled in a public or private 2-year institution;

    or
    graduated with a cumulative GPA of at least 3.0 on a 4.0 scale, with a total number of credit hours (including transfer hours and hours earned exclusively by examination) that is no more than 6 hours beyond what is required to complete the degree or certificate.

Forgiven B-On-Time loans must be reported to the IRS as taxable income.

APPLICATIONS

Please apply online here.

For more information, review Coordinating Board Rules, Chapter 21, Subchapter E , Texas Education Code, Chapter 56 or please call us in Austin (512) 427-6340 or toll-free (outside Austin metro) 1-800-242-3062.