SKIP TO PAGE CONTENT
Menu

Loans

Menu

Loans

The information below provides a basic overview of federal and private student loans. Before borrowing, we strongly encourage you to contact our Financial Aid Office with any questions. Our team members are trained by the National Association of Student Financial Aid Administrators (NASFAA) and can help you make informed decisions.

Federal Direct Loans

Federal Direct Loans are long-term, low-interest loans available to students and parents to help cover college costs.

Basic Requirements:

  • Must be enrolled in at least 6 credit hours
  • Must be degree seeking taking classes towards your degree
  • Must complete:
  • Loans are disbursed in two equal payments:
    • Fall semester (census, 12th class day)
    • Spring semester (census, 12th class day)
  • Loans are prorated for less than full time students
    • Proration formula is: Enrolled credits/24 credit hours multiplied by the Annual loan Limit

Types of Direct Loans

Direct Subsidized Loans (Need-Based)

  • Available to undergraduate students with financial need
  • Interest is paid by the federal government while you are in school (at least half-time) and during the 6-month grace period after leaving school
  • Repayment begins after you graduate, withdraw, or drop below half-time

Interest Rates:

  • 2025–2026: 6.39%

Borrowing Limits:

  • Freshman: up to $3,500
  • Sophomore: up to $4,500
  • Junior/Senior: up to $5,500
  • Lifetime limit: $23,000

Loan Fee: Up to 1.057%

Direct Unsubsidized Loans (Not Need-Based)

  • Available to undergraduate and graduate students
  • Interest accrues while you are in school
  • You can choose to:
    • Pay interest while enrolled, or
    • Let it accumulate and be added to your loan balance

Interest Rates:

  • Undergraduate (2025–2026): 6.39%
  • Graduate (2025–2026): 7.94%

Borrowing Limits:

Dependent Students (parents data used on FAFSA):

  • Freshman: up to $5,500 (max $3,500 subsidized)
  • Sophomore: up to $6,500 (max $4,500 subsidized)
  • Junior/Senior: up to $7,500 (max $5,500 subsidized)

Independent Students (Do not need parent information on FAFSA):

  • Freshman: up to $9,500
  • Sophomore: up to $10,500
  • Junior/Senior: up to $12,500

Graduate Students:

  • Up to $20,500 per year

Lifetime Limits:

  • Undergraduate: $57,500 (max $23,000 subsidized)
  • Graduate: $100,000

Loan Fee: Up to 1.057%

Direct PLUS Loans (Parents)

  • Available to:
    • Parents of dependent undergraduate students
  • Can cover remaining costs after other financial aid
  • Credit check required

Annual Limit:

  • $20,000 per year, per dependent student

Lifetime Limits:

  • $65,000 per dependent student

Interest Rates:

  • 2025–2026: 8.94%

Repayment:

  • Begins 60 days after full disbursement (unless deferred)

Loan Fee: Up to 4.228%

Interest Rates (Quick Reference)

Loan Type

Borrower

2025–2026

Subsidized

Undergraduate

6.39%

Unsubsidized

Undergraduate

6.39%

Unsubsidized

Graduate

7.94%

PLUS

Parents

8.94%

All rates are fixed for the life of the loan.

Loan Fees

Loan fees are deducted from each disbursement, so the amount you receive will be less than what you borrow. However, you are responsible for repaying the full loan amount.

Loan Type

Fee

Subsidized & Unsubsidized

1.057%

PLUS Loans

4.228%

Loan FAQs

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 is loan proration?

Federal direct loans are offered at the beginning of an academic year and are based on expected full time enrollment. Per federal regulations, institutions are required to prorate loans for graduating undergraduate students when their final period of enrollment is less than a full academic year. This means, that graduating undergraduate students who only attend one semester of the academic year will have their federal direct loans prorated (adjusted) based on enrollment. This most often affects students who graduate in December.

What are my repayment options and how much will I owe when I leave A&M-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://studentaid.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://studentaid.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://studentaid.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://studentaid.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://studentaid.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.