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Student Loans

Student loans are a form of financial assistance that must be repaid and are available through various federal and state programs. Loan terms—including interest rates, repayment schedules, and in-school deferment options—vary by program. To be eligible for student loans, students must be enrolled in at least six credit hours.

Federal Direct Loan Program

UT Permian Basin participates in the Federal Direct Loan Program, which includes both subsidized and unsubsidized loans:

  • Direct Subsidized Loans
    These loans are available to students with demonstrated financial need, as determined by the FAFSA. The federal government pays the interest while the student is enrolled at least half-time. These loans offer a low, fixed interest rate and serve as a foundational source of financial aid.
  • Direct Unsubsidized Loans
    These loans are not based on financial need. Interest begins accruing immediately upon disbursement, although students may defer payment of the principal while enrolled. Unsubsidized loans can help cover the Expected Family Contribution (EFC) as calculated by the FAFSA.

Loan Application and Management

To receive a federal student loan, students must:

  1. Complete Entrance Counseling
  2. Sign a Master Promissory Note (MPN)
  3. Accept the loan amount offered (students may accept all or part of the loan)

Students or parents who wish to cancel a loan or disbursement must submit a Cancellation Notice to the Office of Student Financial Aid within 14 days of receiving the loan disbursement notification.

For more information about federal student loans, visit:
https://studentaid.gov

Federal Student Aid

 

 

 

 

 

 

 

 

Student loans are available through a number of federal and state programs. Loans differ in interest rates, terms of repayment, and provisions for in-school deferments. Student loans are not gift aid and must be repaid. Students must be enrolled in at least six hours to receive their loans.

Federal Direct Loan Program

The Federal Direct Subsidized Loan provides guaranteed student loans to students at a low variable interest rate. The Federal government pays the interest on these loans while the borrower is enrolled in school. Eligibility for a subsidized Federal Stafford Loan is determined through the FAFSA need analysis.

All other Federal loans are unsubsidized. This means that the borrower begins paying interest on the loan at the time the loan is made. In most cases, the principal can be deferred during enrollment periods. Unsubsidized loans can be used to meet the Expected Family Contribution (EFC) calculated in the FAFSA need analysis. The EFC is that portion of the student's family income which should be available to help pay a portion of the student's educational costs.

To qualify for loans, students must complete their entrance counseling, Master Promissory Note (MPN), and accept the loan amount. You have the right to accept all or a portion of your loans. Students or parents wishing to cancel loans or disbursements must complete the Cancellation Notice available in the Office of Student Financial Aid within 14 days of receiving their loan disbursement notice. More information about federal loans is available at studentaid.gov.