Federal Loans

Borrowing money to pay for your education is an important decision. The cost of higher education is increasing but remains an investment worth your time, effort and money. Keep in mind that any money you borrow will have to be repaid, so a student loan is a long-term financial obligation.

Texas Law participates in the William D. Ford Federal Direct Loan Program. Under the Direct Loan Program, loans are made by the U.S. Department of Education. Direct Loans for graduate and professional students are all unsubsidized (which means that interest is charged on the loan, beginning the day that the loan is disbursed). To apply for federal loans, eligible students must complete the FAFSA (available October 1). Students who are not U.S. citizens or permanent residents are not eligible to borrow under the Direct Loan program, but may be eligible for loans from private lenders.

Federally Guaranteed Student Loans

A Direct Unsubsidized Loan is not based on financial need. There is no collateral, credit check, cosigner, or endorser required. The student is responsible for interest that accrues from the date the loan is disbursed (released). Students may borrow an annual maximum of $20,500 in Unsubsidized Direct Loans. The interest rate updates annually. For 2017-18, it is 6.00 percent. The maximum aggregate that a student may borrow during their educational career is $138,500.

Federal Direct Graduate PLUS loans are government-sponsored, low-interest loans designed to help graduate and professional students. Eligible students may borrow up to the Cost of Attendance less any other financial assistance. The borrower or endorser must not have an adverse credit history. (A credit verification is required.) The Grad PLUS loan interest rate updates annually. For 2017-18, it is 7.00 percent.

Federal law requires certain fees be charged for each Federal Direct Loan made, including an origination fee and a federal default fee (previously called a guarantee fee). The law specifies the maximum amount for each fee and authorizes both fees to be deducted from the loan amount. Fees charged to the borrower are deducted from the loan proceeds when the money is sent to the student’s school.

Emergency Loan Assistance

UT and Texas Law have programs that can assist students whose financial aid award is not available when the semester begins. These loan programs are available after you have enrolled. Email one of the financial aid counselors at the law school for further information.