Loans

There are several federal and state grant programs available to students who meet certain eligibility criteria. Each grant program has specific eligibility requirements.

• Types of Federal and State Grants

These programs require students complete the Free Application for Federal Student Aid (Complete the Free Application for Federal Student Aid Form) each school year.

Grant funds do not have to be repaid.

Institutional scholarships are awarded by each school. Eligibility criteria and the application process varies between each school.

Students may also apply for outside scholarships through a variety of sources.

Scholarship funds do not have to be repaid.

You should never be asked to pay a fee for scholarship applications or searches.

There are a variety of student loans available to help students finance their education, including federal, state, and private/alternative loans. Before making a decision to borrow a student loan, students and parents should review the Federal Student Aid website for Federal vs. Private Loan information. 

Student loans do require repayment and students have the right to reduce or cancel a student loan at any time by notifying the Financial Aid Office in writing. 

Federal Direct Loan Programs

Students may apply for a Federal Direct student loan by submitting the Complete the Free Application for Federal Student Aid FormFree Application for Federal Student Aid (FAFSA) These loans include the Direct Subsidized Loan, Direct Unsubsidized Loan, and Direct PLUS Loans.

For more information on the Federal Direct Subsidized and Unsubsidized loan programs, please visit the Federal Student Aid website.  

For more information on PLUS loans, please visit the Federal Student Aid website.

Private and Alternative Educational Loans

These loans are available through the state and various private lenders. These loans require a separate application from the FAFSA and eligibility criteria varies for each lender. The lender will conduct a credit check to determine eligibility and a co-signor may be required.

*Please note that the TTUHSC provides a list of some available lenders for students to use as starting point and lenders are evaluated annually for inclusion. Students are not limited to selecting a lender from this list and the TTUHSC does not receive any benefits in exchange for placing a lender on this list. A borrower should never be directed to a specific lender by the University.

The Federal Stafford Loan Program annual loan limits are typically less than a student’s financial aid budget for the year. However, there are now two types of credit based programs for you to consider. These loans provide the extra money the student needs to bridge the gap between the cost of education and the amount of financial aid awarded. They are a private alternative loan or a Federal Graduate Plus loan.

The alternative loan is a private loan designed for all students. Repayment of these loans typically begins 6 months after graduation (or separation) from your program. However, these loans are credit based and the student must meet certain credit criteria or apply with an eligible co-signer to be approved for these loans. Most of the lenders offer variable interest rates, and many set your interest rate based on your credit rating. If you were awarded an alternative loan, you must still apply with a lender to be approved and receive this loan.

The Federal Graduate Plus loan program is designed for Graduate/Professional Students only. The Grad/Plus loan is very similar to the private alternative loan. These loans are also credit based; however, the student must meet different credit criteria set by the Federal Government. The interest rate for this loan is fixed and is set every July 1st.  The highest the interest rate can be is 8.25%.  Repayment begins 60 days after the loan is fully disbursed; however you can request an in-school deferment on this loan (for each year/semester of enrollment) until graduation (or separation) from your program. Please note: dependent, undergraduate students interested in the Plus loan program, may request their parents apply for the Parent Plus Loan program.

• Direct Subsidized Loans are available to undergraduate students with financial need.
• Your school determines the amount you can borrow, and the amount may not exceed your financial need.
• The U.S. Department of Education pays the interest on a Direct Subsidized Loan while you’re in school at least half-time, for the first six months after you leave school (referred to as a grace period), and during a period of deferment (a postponement of loan payments).

• Direct Unsubsidized Loans are available to undergraduate and graduate students; there is no requirement to demonstrate financial need.
• Your school determines the amount you can borrow based on your cost of attendance and other financial aid you receive.
• You are responsible for paying the interest on a Direct Unsubsidized Loan during all periods. 
• If you choose not to pay the interest while you are in school and during grace periods and deferment or forbearance periods, your interest will accrue (accumulate) and be capitalized (that is, your interest will be added to the principal amount of your loan).

You must have loan eligibility listed in your student awards before you can apply for one of these loans. If you wish to apply for either loan, you may choose a lender from the lender list and apply at the lender’s website.

Many lenders offer you a pre-approval process so you can determine your eligibility for the loan. If you are approved for the loan, the lender will notify our office so we may provide the school certification portion. If you are not approved, you are encouraged to contact the lender to determine the reason for the denial. If denied, most lenders will work with you to offer possible alternatives, such as applying with a co-borrower.