Texas Tech University

Federal Direct Loan Program

The Federal Direct Loan Program offers low interest rate loans
(subsidized or unsubsidized), directly from the Department of Education, to undergraduate and graduate/professional students. Eligibility is determined using information provided in the Free Application for Federal Student Aid (FAFSA) and not on the basis of credit or debt to income ratio.

Borrower

Student

Loan Eligibility

Students enrolled at least half-time in an eligible program of study, who:

  • Have completed the Free Application for Federal Student Aid (FAFSA)
  • Are U.S. citizens or eligible non-citizens
  • Are not in default on any federal educational loans
  • Have not already borrowed more than the aggregate federal direct loan limit for their program
  • Meeting Satisfactory Academic Progress (SAP)

Types of Federal Direct Loans

Direct Subsidized Loan – This need-based loan program is referred to as "subsidized" because the student is not charged interest while they are enrolled in school at least half-time and during grace periods and deferment periods.

Direct Unsubsidized loan – This non-need-based loan program is referred to as "unsubsidized" because interest accrues (accumulates) while the student in enrolled in school. Interest on Direct Unsubsidized Loans begins to accrue after disbursement of the loan funds; however, the student may choose to have the payment of the interest deferred during enrollment and later capitalized (added to principal) at the time of repayment.

How to Apply

  1. Complete the Free Application for  Federal Student Aid (FAFSA)
  2. Submit all requested supporting documentation to the Office of Student Financial Aid
  3. Complete Entrance Loan Counseling for the Federal Direct Loan
  4. Complete the Federal Direct Subsidized/Unsubsidized Loan Master Promissory Note
  5. View and accept Federal Direct Subsidized and/or Unsubsidized Loan offers on MyTech.

Borrowing Limits

Dependent Undergraduate Students

Year Subsidized Unsubsidized* Annual Total Aggregate Subsidized Aggregate Total
(Subsidized & Unsubsidized)
Freshman
(0-30 credit hours)
 $3,500  $2,000  $5,500 $23,000    $31,000   
Sophomore
(31-60 credit hours)
 $4,500  $2,000  $6,500
Junior, Senior
(61 - 120+ credit hours)
 $5,500  $2,000  $7,500

Independent Undergraduate Students

Year Subsidized Unsubsidized Annual Total Aggregate Subsidized Aggregate Total
(Subsidized & Unsubsidized)
Freshman
(0-30 credit hours)
  $3,500  $6,000  $9,500 $23,000    $57,500   
Sophomore
(31-60 credit hours)
 $4,500  $6,000 $10,500 
Junior, Senior
(61 - 120+ credit hours)
 $5,500  $7,000 $12,500
Year Subsidized Unsubsidized Annual Total Aggregate Subsidized Aggregate Total**
(Subsidized & Unsubsidized)
 All  $0  $20,500  $20,500 $0  $138,500 

 *If a Federal Direct PLUS Loan for Parents is applied for and denied based on credit, a dependent undergraduate student may borrow at the independent undergraduate level.
**Aggregate total includes Federal Direct Loans borrowed as an undergraduate student.

Interest Rates

Borrower Loan Fixed Interest Rate (for loans disbursed on or after July 1, 2017)
Undergraduate Subsidized 4.45% (upon entering repayment)
Undergraduate Unsubsidized 4.45%
Graduate/Professional Unsubsidized 6.00%

Fees

1.069% for loans with a first disbursement on or after Oct. 1, 2016. Fees are scheduled to change each fall due to federal budget sequestration.

Repayment Information

Repayment begins six months after you graduate or drop below half-time enrollment and generally extends over a 10-year period. You can apply for temporary deferment of payments if you enroll in graduate school at least half-time, become unemployed, experience economic hardship, or meet other approved criteria. There are different repayment plans for your federal loans, and you may choose one that best fits your circumstances. You may be able to estimate your monthly payment amounts using a Student Loan Calculator.

NOTE: Information about your loans will be reported to the National Student Loan Data System (NSLDS). Information in NSLDS is accessible to schools and loan servicers for specific purposes as authorized by the Department of Education.

Additional details regarding the Federal Direct Loan Program may be found at studentloans.gov.