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Loans

Long and short –term education loans are available for students to assist in meeting educational costs.

Direct Loans are long-term student loans that have low interest rates for students and parents to assist in paying college costs. Students must be enrolled in minimum of six semester hours in order to be eligible for loans. According to the Department of Education, students enrolled in an all-web program, are not eligible for transportation budgeting within their award. Students borrowing a Direct Loan are required to complete Entrance Counseling and the Master Promissory Note online at www.studentloans.gov prior to receiving loan funds. According to Federal guidelines, these loans must be disbursed in two equal payments, one at the beginning of the loan period and one in the middle of the loan period.

  • Direct Subsidized Loans are need-based, federally subsidized loans with a fixed interest rate set by the government. Repayment is deferred until students graduate, withdraw, or enroll less than half-time. Subsidized loans disbursed on or after 7/1/17 and before 7/1/18 have a 4.45% fixed interest rate, and subsidized loans disbursed on or after 7/1/16 and before 7/1/17 have a 3.76% fixed interest rate. Interest is paid by the federal government until six months after students graduate, withdraw, or cease to be enrolled at least half-time. An origination fee of up to 1.069% is charged at disbursement (for disbursements completed on or after Oct. 1, 2016, and before Oct. 1, 2017). The annual maximum amount a student may borrow depends on the students grade level.  A freshman can borrow up tp $3500, a sophomore can borrow up to $4500, and a junior or senior can borrow up to $5500.  The maximum aggregate total a student can borrow is $23,000.
  • Direct Unsubsidized Loans are not based on need. "Unsubsidized" means the interest is not deferred while in school and is not paid by the federal government. Repayment may be deferred until after students graduate, withdraw, or enroll less than half-time. Undergraduate unsubsidized loans disbursed on or after 7/1/17 and before 7/1/18 have a 4.45% fixed interest rate, and undergraduate unsubsidized loans disbursed on or after 7/1/16 and before 7/1/17 have a 3.76% fixed interest rate. Graduate/Professional unsubsidized loans disbursed on or after 7/1/17 and before 7/1/18 have a 6.00% fixed interest rate, and graduate/professional unsubsidized loans disbursed on or after 7/1/16 and before 7/1/17 have a 6.31% fixed interest rate. An origination fee of up to 1.069% is charged at disbursement. There is an annual maximum a student may borrow.  Dependent freshmen up to $5500, no more than $3500 can be subsidized, sophomore's up to $6500, no more than $4500 can be subsidized, juniors and seniors up to $7500, no more than $5500 can be subsidized.  Independent freshman can borrow up to $9500, no more than $3500 can be subsidized, sophomore's up to $10,500, no more than $4500 can be subsidized, juniors or seniors up to $12,500, no more than $5500 can be subsidized, graduates can borrow up to $20,500. The maximum aggregate total a student can borrow is $57,500 for undergraduate, no more than $23,000 can be unsubsidized.  The maximum aggregate total a graduatge student can borrow is $138,500, which includes loans received while an undergraduate.
  • Federal Direct PLUS Loans allow parents of dependent undergraduates, as well as graduate/professional students, to borrow up the cost of education minus other financial aid. There are not aggregate loan limits. The program has a fixed interest rate of 7.00% for loans disbursed on or after July 1, 2017 and before July 1, 2018, and a rate of 6.31% for loans disbursed on or after July 1, 2016 and before July 1, 2017. An origination fee of up to 4.264% is charged at disbursement. Unless deferred, repayment begins 60 days after the loan is fully disbursed.
  • Emergency Tuition and Fees Loans are institutional loans that assist students meet the semester payment deadline. Applications are available online approximately one-week prior to the beginning of each semester.
Interest Rates for Direct Loans First Disbursed on or After July 1, 2015.
Loan Type Borrower Type Loans First Disbursed on or
after 7/1/17 and before 7/1/18
Loans First Disbursed on or
after 7/1/16 and before 7/1/17
Direct Subsidized Loans Undergraduate 4.45% 3.76%
Direct Unsubsidized Loans Undergraduate 4.45% 3.76%
Direct Unsubsidized Loans Graduate or
Professional
6.00% 5.31%
Direct PLUS Loans Parents and Graduate
or Professional Students
7.00% 6.31%
All interest rates shown in the chart above are fixed rates for the life of the loan.

Loan Fees

The loan fee is a percentage of the loan amount and is proportionately deducted from each loan disbursement. The percentage varies depending on when the loan is first disbursed, as shown in the chart below. This means the money you receive will be less than the amount you actually borrow. You're responsible for repaying the entire amount you borrowed and not just the amount you received.

Loan Type First Disbursement Date Loan Fee
Direct Subsidized Loans and
Direct Unsubsidized Loans         
         On or after 10/1/17 and before 10/1/18             1.066%   
On or after 10/1/16 and before 10/1/17 1.069%
Direct PLUS Loans On or after 10/1/17 and before 10/1/18 4.264%
On or after 10/1/16 and before 10/1/17 4.276%

Loans first disbursed prior to October 1, 2015 have different loan fees.

What is the difference between Subsidized and Unsubsidized loans?  Subsidized loans are loans in which the federal government pays the interest until the student graduates or until the student becomes enrolled less than half time. On an Unsubsidized loan, interest accrues while the student is in college and during repayment.

How do I accept my loans?

  • Log in to Web for Students
  • Select "Financial Aid;" "Financial Aid Status;" then the appropriate award year
  • Select the highlighted word "awarded"
  • Select "Accept Award Offer" tab
  • Review your award and either accept the entire award or plug in partial award amount and submit your decision.

How do I decrease or increase the amount of loan funds I accepted?  Students can request to change the amount of loans (decrease or increase) they accepted. Requests for loan changes must be in writing either by a signed note or electronically through the student’s secure Ace mail account.

*Note* Students cannot not request more than the full amount of loans offered. Students are offered the maximum amount for which they are eligible.

What are my repayment options and how much will I owe when I leave Texas A&M University Texarkana?  The Federal Government offers repayment calculators for personalized repayment options as well as estimated repayment calculator for general information.

How do I apply for a Parent PLUS Loan?  Parents of dependent students are eligible to apply for a Parent PLUS Loan.  This loan is credit-based and, if approved, can be borrowed to cover the student's cost of attendance that the student's other financial aid does not cover. 

If you are interested in receiving this award, you will need to apply for the PLUS loan for the correct award year.

To apply for the PLUS loan please follow the instructions below:

  • Go to https://studentloans.gov
  • The parent must sign in using their U.S. Department of Education Personal Identification Number (PIN) or login/password
  • Select Request Direct PLUS loan
  • Select Parent PLUS for loan type on bottom of page
  • Follow steps to complete the application and credit check
  • The results of the credit check will be given immediately. 
    • If your credit is approved, you must:
      • Complete PLUS Loan Counseling on https://studentloans.gov - PLUS Counseling is voluntary unless required by the Department of Education.  Parents will be contacted by the Department of Education if this is required.
      • Complete a PLUS Master Promissory Note.  You may see if you have already completed a PLUS Master Promissory Note, by signing in at https://studentloans.gov and checking under “Completed MPN’s.”
    • If your credit is denied, your options are:
      • Undecided OR I will not pursue the parent PLUS loan.  If this option is selected the Financial Aid & Scholarships Office will offer the student an additional unsubsidized loan if their budget allows.
      • Pursue an endorser. If this option is selected you will need to have your endorser complete an application on https://studentloans.gov, and if approved they will have to submit the ENDORSER Disbursement Authorization form to the Financial Aid & Scholarships Office.
      • Appeal decision.  If this option is selected you will complete an appeal on https://studentloans.gov

Entrance and Exit loan counseling

Entrance Counseling

Log in to Web for Students. Select the following options: Financial Aid; Financial Aid Status; Select appropriate aid year; click the word "awarded" under your summary of financial aid; choose the "Accept Award Offer" tab; click the link provided for Entrance Counseling.

Online counseling may require the use of specific browsers and/or browser settings. If you encounter difficulties completing a counseling session, please notify the FAO.

Exit Counseling

Students that are graduating or whose enrollment status drops below half time will be required to complete Exit Counseling if they received any student loans.

Office of the Ombudsman

The Federal Student Aid Ombudsman Group of the U.S. Department of Education assists borrowers in resolving disputes related to William D. Ford Federal Direct Loans, Federal Family Education Loan (FFEL) Program Loans, or Federal Perkins Loans. The Ombudsman Group is a neutral, informal, and confidential resource to help resolve disputes regarding student loans that an institution has not resolved. 

The Ombudsman can be contacted at the following address:

U.S. Department of Education 
FSA Ombudsman
830 First Street, NE
Fourth Floor
Washington, DC 20202-5144

Phone: 877-557-2575
Fax: 202-275-0549

The Texas State Higher Education Coordinating Board can be contacted with regards to obtaining information on programs offered by the state. This agency can be contacted by calling 512-427-6101 or by going to their website at www.collegeforalltexans.com.

Students or other persons with questions regarding the consumer information or disclosures provided on this page can contact the Financial Aid Office at 936-468-2403.

  • 7101 University Ave
  • Texarkana, TX 75503
  • p: 903.223.3000
  • f: 903.223.3104
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