Loan FAQs

Here is a list of FAQs related to Direct Loans and 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..

Direct Loan FAQs

What are the benefits of the Direct Loan program?

What do I have to do to get my loan funds?

Can I go ahead and complete the loan counseling now?

If I borrowed through a private bank last year, will I have to pay two different lenders now?

Where can I find information about deferments or forbearance requests?

Where do I find information about Federal Loan Consolidation?

What is required when I leave UNT?

PLUS FAQs

How do my parents apply for a loan?

What if my parent is not eligible for federal Direct PLUS loan?

What is a Federal Direct PLUS for Graduate Student Loan?

What about repayment?

Where can I get additional information?

Direct Loan FAQs

What are the benefits of the Direct Loan Program?

Several of the benefits are:

    • A guaranteed source of funding for student loans.
    • The option of an incomeIncome is the amount of money received from employment (salary, wages, tips), profit from financial instruments (interest, dividends, capital gains), or other sources (welfare, disability, child support, taxable Social Security, and pensions).-contingent repayment plan or an income-based repayment plan when a student enters repayment. This means a borrowerThe person who receives a loan. has the option of ensuring that the loan repayment amount will always be affordable based on what an income will allow.
    • Students in the Federal Direct Loan Program who enter into public service jobs can have any remaining balance on loans forgiven after 10 years of repayment while in public service work. (While this option does not exist in the FFEL Program, students who borrowed in that program can consolidate their loans to the Direct Loan Program in order to take advantage of this forgiveness).

What do I have to do to get my loan funds?

You will have to complete a FAFSA for Direct Loan eligibility.  Monitor myUNT To Do List for updates and requirements.  Once your file is considered complete, you will be notified about your award(s) that you must Accept or Decline via myUNT.

First-time student loan borrowers at UNT must also complete the online Entrance Counseling requirements and have a valid 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. (MPN) on file. Continuing student loan borrowers must complete Financial Awareness Counseling.

Can I go ahead and complete the loan counseling now?

Yes.  If you are a new borrowerSee First-Time Borrower at UNT (including transfer students), you may complete your Federal Direct Loan Entrance counseling at any time.  This can be done at StudentLoans.gov.  You will need your Federal Student Aid ID and enter University of North Texas as a school to receive the results. Parent PLUS borrowers do not need to complete Entrance Counseling.

If you a continuing borrower at UNT, you may complete your Financial Awareness Counseling through StudentLoans.gov. You must enter University of North Texas as your school to receive the results. Be sure to keep your confirmation number for future reference. 

If I borrowed through a private bank last year, will I have to pay two different lenders now?

Your Federal Direct Loan will be serviced by the Department of Education, so you will receive correspondence and payment information from both the Department of Education and your prior lender or servicerA servicer is an organization that collects payments on a loan and performs other administrative tasks associated with maintaining a loan portfolio. Loan servicers disburse loans funds, monitor loans while the borrowers are in school, collect payments, process deferments and forbearances, respond to borrower inquiries, and ensure that the loans are administered in compliance with federal regulations and guarantee agency requirements. EduServ is the largest private servicer of student loans in the US.. You have the option of consolidating all of your FFEL Stafford loansStafford Loans are federal loans that come in two forms, subsidized and unsubsidized. Subsidized loans are based on need; unsubsidized loans are not. The interest on the subsidized Stafford Loan is paid by the federal government while the student is in school and during the 6 month grace period. The Subsidized Stafford Loan was formerly known as the Guaranteed Student Loan (GSL). The Unsubsidized Stafford Loan may be used to pay the EFC. Undergraduates may borrow up to $23,000 ($2,625 during the freshman year, $3,500 during the sophomore year, and $5,500 during the third, fourth, and fifth years) and graduate students up to $65,500 including any undergraduate Stafford loans ($8,500 per year). These limits are for subsidized and unsubsidized loans combined. The difference between the subsidized loan amount and the limit may be borrowed by the student as an unsubsidized loan. Higher unsubsidized Stafford loan limits are available to independent students, dependent students whose parents were unable to obtain a PLUS Loan, and graduate/professional students. Undergraduates may borrow up to $46,000 ($6,625 during the freshman year, $7,500 during the sophomore year, and $10,500 during each subsequent year) and graduate students up to $138,500 including any undergraduate Stafford loans ($18,500 per year). These limits are for subsidized and unsubsidized loans combined. The amounts of any subsidized loans are still subject to the lower limits. with the Direct Loan program after you graduate or leave school.  If you consolidate with the U.S. Department of Education all of your payments would be made to the Direct Loan program.

Where can I find information about deferments or forbearance requests?

To find this information, please visit the Direct Loan Deferment and Forbearance website. To gather the form(s) needed for deferment or forbearance, you will need to contact your loan servicers(s) directly.

To find out who your loan servicer(s) is, please log onto the National Student Loan Data system (NSLDS), using your Federal Student Aid ID. The National Student Loan Data System is the U.S. Department of Education's (ED's) central database for student aid recipients of Title IV Aid to access and inquire about their Title IV loan and/or grantA grant is a type of financial aid based on financial need that the student does not have to repay. data.

Where do I find information about Federal Loan Consolidation?

Visit Direct Loan Consolidation

What is required when I leave UNT?

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 StudentLoans.gov, sign in with your Federal Student Aid PIN, select Complete Counseling from the main menu box and then Exit Counseling.  Be sure to select the University of North Texas as a school to receive notification of completion.

PLUS Loan FAQs

How do my parents apply for a loan?

The FAFSA must be completed for Federal Direct PLUS eligibility to be determined.

To apply, the parent borrower  must log onto StudentLoans.gov to submit the Direct Parent PLUS Request. Detailed instructions for completing the Direct Parent PLUS Request are available here.

A credit check is conducted by the U.S. Department of Education to establish eligibility.  You cannot have an adverse credit history. Borrowers will be notified if additional action is necessary.

What if my parent is not eligible for federal  Direct PLUS loan?

The Department of Education will run a credit history check to determine eligibility for a Direct PLUS loan.  The department will provide additional information to parents about other options (i.e. pursue a co-signer/endorser or appealThere are situations that may lead to a students' desire to file an appeal with the Financial Aid Office. Student appeals must be provided in writing. SFAS has specific appeal processes in place for appeals on Satisfactory Academic Progress, Special Circumstances, Dependency Overrides and Scholarships. the denial) if there is adverse credit history.  UNT will process all denials received, regardless of which option is chosen.  The PLUS Denial - Additional Unsubsidized LoanAn unsubsidized loan is a loan for which the government does not pay the interest. The borrower is responsible for the interest on an unsubsidized loan from the date the loan is disbursed, even while the student is still in school. Students may avoid paying the interest while they are in school by capitalizing the interest, which increases the loan amount. Unsubsidized loans are not based on financial need and may be used to finance the family contribution. Request Form will be added to the student's To Do list via MyUNT once the denial has been processed.

What is a Federal Direct PLUS for Graduate Student Loan?

The Deficit Reduction Act of 2005 modified the Federal Direct PLUS program (formerly offering loans only to parents), which now allows graduate students to borrow PLUS loans. Students must request 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). and Scholarships staff to review their eligibility for a Graduate Professional Federal Direct PLUS loan.

What about repayment?

Repayment of the Federal Direct PLUS Loan 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. and interest 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 loan period. Deferments are available for parents who wish to postpone repayment until after the dependentSee Dependency Status. student has graduated or withdrawn.

Repayment deferment can be requested by the parent on the application or by contacting the loan servicer once fully disbursed.

To find out who your loan servicer(s) is, please log onto the National Student Loan Data system (NSLDS), using your Federal Student Aid ID. The National Student Loan Data System is the U.S. Department of Education's (ED's) central database for student aid recipients of Title IV Aid to access and inquire about their Title IV loan and/or grant data.

Where can I get additional information?

For more information, visit the Direct Loans - Parent PLUS information website.