Description

This is a low-interest loanA loan is a type of financial aid that must be repaid, with interest. The Federal Student Loan Program is a good method of financing the costs of your college education. These loans are better than most consumer loans because they have lower interest rates. The Federal Loans and Perkins Loans also provide a variety of deferment options and extended repayment terms. for graduate and professional students.  Graduate PLUS loansParent Loans for Undergraduate Students (PLUS) are federal loans available to parents of dependent undergraduate students to help finance the child's education. Parents may borrow up to the full cost of their children's education less the amount of any other financial aid received. PLUS Loans may be used to pay the EFC. There is a minimal credit check required for the PLUS loan, so a good credit history is required. Students are advised to check with their local bank to see if they participate in the PLUS loan program. If the application for a PLUS loan is turned down, the student may be eligible to borrow additional money under the Unsubsidized Stafford Loan program. help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods.  The lenderA lender is a financial institution that provides funds to the student or parent for an educational loan. is the U.S. Department of Education.

Amount

The annual limit cannot exceed UNT Cost of Attendance minus the other financial aidMoney provided to the student and the family to help them pay for the student's education. Major forms of financial aid include gift aid (grants and scholarships) and self help aid (loans and work). the student receives.

Eligibility

• The Free Application for Federal Student Aid (FAFSA)The FAFSA is used to apply for Pell Grants and all other aid. Complete your FAFSA via web at www.fafsa.gov . As the name suggests, no fee is charged to file a FAFSA. Follow the directions carefully to ensure proper and efficient processing. must be completed for Federal Direct PLUS eligibility to be determined.
• You must be enrolled half-timeDuring each term, 6-8 credit hours is considered half-time for undergraduate students. For graduate students, 5 hours is considered half-time. and be admitted into a graduate level program.
• IMPORTANT NOTE:  A credit check is conducted by the U.S. Department of Education to establish eligibility.  You cannot have an adverse credit history.

Payment

LoanA loan is a type of financial aid that must be repaid, with interest. The Federal Student Loan Program is a good method of financing the costs of your college education. These loans are better than most consumer loans because they have lower interest rates. The Federal Loans and Perkins Loans also provide a variety of deferment options and extended repayment terms. funds will not disburse (pay) until all requested documentation has been submitted, and your aid application is considered to be complete. A note will be placed on your myUNT "To Do List" if additional steps are required before disbursementDisbursement is the release of loan funds to the school for delivery to the borrower. The payment will be made co-payable to the student and the school. Loan funds are first credited to the student's account for payment of tuition and fees. Any excess funds are then paid to the student in cash or by check for the purpose of paying for other educational expenses.. If the financial aidMoney provided to the student and the family to help them pay for the student's education. Major forms of financial aid include gift aid (grants and scholarships) and self help aid (loans and work). file is complete, disbursements can be made as early as ten days prior to the first day of a Fall or Spring fee payment (August/January) period. However, disbursements can also occur throughout an enrollment term upon completion of a file.

Interest Rate

It's a fixed rate of 7.9 percent. All interest rates and fees are valid only from July 1, 2011 through June 30, 2012.

Repayment

Repayment begins 60 days after the final disbursementDisbursement is the release of loan funds to the school for delivery to the borrower. The payment will be made co-payable to the student and the school. Loan funds are first credited to the student's account for payment of tuition and fees. Any excess funds are then paid to the student in cash or by check for the purpose of paying for other educational expenses. for the loanA loan is a type of financial aid that must be repaid, with interest. The Federal Student Loan Program is a good method of financing the costs of your college education. These loans are better than most consumer loans because they have lower interest rates. The Federal Loans and Perkins Loans also provide a variety of deferment options and extended repayment terms. period. Graduate students may defer payments while in school.  Deferments can be requested by contacting the U.S. Department of Education.

The Project on Student Debt works to increase public understanding of rising student debt. This initiative has compiled the top 10 tips for keeping your student loans under control. The tips can be reviewed here.

The National Association of Student Financial AidMoney provided to the student and the family to help them pay for the student's education. Major forms of financial aid include gift aid (grants and scholarships) and self help aid (loans and work). Administrators (NASFAA) has created several tables to illustrate costs borrowers will face when they repay their loans. These tables can be viewed here.

PayBackSmarter is a free tool to assist you in understanding your student loan repayment options. Their repayment calculator gives you a simple, visual way to review each different plan. Additional information is available here.

For more information regarding repayment, please visit Direct Loan Repayment Plans. For information regarding deferment or forbearanceDuring a forbearance the lender allows the borrower to temporarily postpone repaying the principal, but the interest charges continue to accrue, even on subsidized loans. The borrower must continue paying the interest charges during the forbearance period. Forbearances are granted at the lender's discretion, usually in cases of extreme financial hardship or other unusual circumstances when the borrower does not qualify for a deferment. Students cannot receive a forbearance if your loan is in default., please visit Direct Loan Deferment and Forbearance.

Repayment Length

Between 10 and 25 years to repay, depending on the amount owed and repayment plan selected.

Additional Information

• If the loanA loan is a type of financial aid that must be repaid, with interest. The Federal Student Loan Program is a good method of financing the costs of your college education. These loans are better than most consumer loans because they have lower interest rates. The Federal Loans and Perkins Loans also provide a variety of deferment options and extended repayment terms. is credit approved, borrowers must electronically sign a Federal Direct Loan Graduate PLUS Master Promissory NoteTo take out a Direct Loan for the first time, you must complete a Master Promissory Note (MPN). You can complete the MPN online at the StudentLoans.gov website. The MPN is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the Department. It also explains the terms and conditions of your loan(s). If you are applying for a Direct PLUS for the first time as a graduate/professional student, you'll need to complete and sign a PLUS MPN that is separate from the one that you use for your Direct Subsidized and Unsubsidized Loans..
• If you are a new borrowerSee First-Time Borrower at UNT (including transfer students), you may complete your Federal Direct Loan Entrance counseling at StudentLoans.gov anytime after being awarded federal aid.  You will need your PIN number (as assigned when you signed the FAFSA) and enter University of North Texas as a school to receive the results. You must complete the counseling before your school can make the first payment of your loan. The counseling will help you understand your responsibilities about your loan.
• The up-front rebate reduces the fee borrowers pay at the point of loan origination. Beginning July 1, 2011, the U.S. Department of Education charges a 4% gross fee, and then gives borrowers an up-front rebate of 1.5%. This means that a net fee of 2.5% of the total amount borrowed each year will be charged. This fee is deducted from the loan by the Department of Education before the proceeds are credited to a student's account.  However, if the first 12 monthly payments are not made consecutively and on time, the U.S. Department of Education will add the 1.5% rebate back to your loan balance.
• Effective Fall 2011, continuing UNT borrowers are required to complete Loan Management Counseling annually. This requirement is a step in UNT's DefaultA loan is in default when the borrower fails to pay several regular installments on time (i.e., payments overdue by 180 days) or otherwise fails to meet the terms and conditions of the loan. If the student defaults on a loan, then the university, the holder of the loan, the state, and the federal government can take legal action to recover the money. This may include garnishing your wages and withholding income tax refunds. Defaulting on a government loan will make the student ineligible for future federal financial aid, unless a satisfactory repayment schedule is arranged, and can affect their credit rating. Aversion Plan; our goal is to ensure that each borrower understands how to manage their student loan and the commitment that comes with the acceptance of a student loan. Above all, borrowers must realize that student loans are not grants or scholarships; they require repayment. You may complete your Loan Management Counseling by following the steps here. You must complete the counseling before UNT can make any payment of your loan.
• IMPORTANT NOTE ABOUT THE UP-FRONT REBATE: The up-front interest rebate that has been provided to Direct Loan borrowers at the time of their loan disbursementDisbursement is the release of loan funds to the school for delivery to the borrower. The payment will be made co-payable to the student and the school. Loan funds are first credited to the student's account for payment of tuition and fees. Any excess funds are then paid to the student in cash or by check for the purpose of paying for other educational expenses. will no longer be offered on any Direct Loan Program loan with a first disbursement date that is on or after July 1, 2012.  For more information, you can review the Department of Education's electronic Announcement.
• Visit the Federal Student Aid site for more information.
• Each Federal Direct Loan borrower at the University of North Texas is required to complete Student Exit Counseling shortly before completing a degree, leaving UNT (i.e., withdrawing, graduation) or ceasing half-timeDuring each term, 6-8 credit hours is considered half-time for undergraduate students. For graduate students, 5 hours is considered half-time. enrollment.  To complete this requirement, go to the NSLDS Exit Counseling website.