Description

This 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 not based on financial needThe difference between the COA and the EFC is the student's financial need - the gap between the cost of attending the school and the student's resources. The financial aid package is based on the amount of financial need. The process of determining a student's need is known as need analysis..  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. 

You'll be responsible for any interest that accrues during in-school and defermentoccurs when a borrower is allowed to postpone repaying the loan. If the student has a subsidized loan, the federal government pays the interest charges during the deferment period. If they have an unsubsidized loan, they are responsible for the interest that accrues during the deferment period. The student can still postpone paying the interest charges by capitalizing the interest, which increases the size of the loan. Most federal loan programs allow students to defer their loans while they are in school at least halftime. If they do not qualify for a deferment, they may be able to get a Forbearance. Students cannot get a deferment if their loan is in default. periods.  Interest payments can be made while 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 is active or can be deferred until graduation. However, if deferment is activated, the interest that accrues while you remain in-school will capitalize (added to the principalThe principal is the amount of money borrowed or remaining unpaid on a loan. Interest is charged as a percentage of the principal. Insurance and origination fees will be deducted from this amount before disbursement. of the loan balance) when repayment begins.

Amount

Annual borrowing limits are based on the student's year of study:

DependentSee Dependency Status. undergraduates

• First year:  $5,500 (no more than $3,500 of this amount may be subsidized)
• Second year:  $6,500  (no more than $4,500 of this amount may be subsidized)
• Third year and beyond:  $7,500 (no more than $5,500 of this amount may be subsidized)

Independent undergraduates (and dependent undergraduates whose parents are unable to borrow under the PLUS 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. Program)

• First year:  $9,500 (no more than $3,500 of this amount may be subsidized)
• Second year:  $10,500 (no more than $4,500 of this amount may be subsidized)
• Third year and beyond: $12,500 (no more than $5,500 of this amount may be subsidized)

Graduate and professional students

• For any year of study:  $20,500 (no more than $8,500 of this amount may be subsidized)
• IMPORTANT NOTE:  Effective Fall 2012, graduate and professional students will no longer be eligible to receive subsidized loans. For more information, you can review the Department of Education's electronic Announcement.

Eligibility

• Be enrolled at least half-timeDuring each term, 6-8 credit hours is considered half-time for undergraduate students. For graduate students, 5 hours is considered half-time.
• Meet Satisfactory Academic ProgressA student must maintain Satisfactory Academic Progress to continue to receive financial aid. Students must maintain a certain qualitative standard (i.e. cumulative GPA) in addition to maintaining a quantitative standard (i.e. successfully completing a required number of credit hours). Students must also complete their degree or certificate program within a maximum timeframe, which may vary according to the student’s status and program. If a student does not maintain the required standards, the student may lose their financial aid eligibility. requirements
• Be registered with the Selective ServiceThe Selective Service Administration executes registration for the military draft. Male students who are US citizens and have reached the age of 18 and were born after December 31, 1959 must be registered with Selective Service to be eligible for federal financial aid. (males only)
• Be a U.S. citizen, national, or eligible non-citizenSomeone who is not a US citizen but is nevertheless eligible for Federal student aid. Eligible non-citizens include US permanent residents who are holders of valid green cards, US nationals, holders of form I-94 who have been granted refugee or asylum status, and certain other non-citizens. Non-citizens who hold a student visa or an exchange visitor visa are not eligible for Federal student aid.

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

The interest rate is 6.8 percent. All interest rates and fees are valid only from July 1, 2011 through June 30, 2012.

Repayment

Repayment begins six months after enrollment drops below half-timeDuring each term, 6-8 credit hours is considered half-time for undergraduate students. For graduate students, 5 hours is considered half-time. status or upon the point of graduation.

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 defermentoccurs when a borrower is allowed to postpone repaying the loan. If the student has a subsidized loan, the federal government pays the interest charges during the deferment period. If they have an unsubsidized loan, they are responsible for the interest that accrues during the deferment period. The student can still postpone paying the interest charges by capitalizing the interest, which increases the size of the loan. Most federal loan programs allow students to defer their loans while they are in school at least halftime. If they do not qualify for a deferment, they may be able to get a Forbearance. Students cannot get a deferment if their loan is in default. 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 you are a new borrowerSee First-Time Borrower at UNT (including transfer students), you may complete your Federal Direct 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. 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.
• 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.
• 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 1% gross fee, and then gives borrowers an up-front rebate of .5%. This means that a net fee of .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 .5% rebate back to your loan balance.
• 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.
• Borrowers must electronically sign a Federal Direct Loan Subsidized/Unsubsidized Master Promissory Note.
• Please visit the Federal Student Aid website 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.