Loans

All loans must be repaid with interest after you graduate or leave college. To minimize your debt, only borrow what you need and limit your additional spending.

Use the federal Loan Simulator to estimate your monthly payments for all the loans you plan to borrow for all your years in college.

You must apply for loans for one academic year at a time (Fall-Spring).

To estimate your educational expenses for each academic year, compare your total grants and scholarships to the estimated Cost of Attendance on your Award Notification.

Choosing Loans

The four loan programs have different eligibility criteria, borrowing limits, and interest rates.

Federal student and parent loans offer several federal repayment benefits including deferment options, flexible repayment plans, consolidation options, and potential loan forgiveness.

For Federal Subsidized & Unsubsidized Loans, the student is the borrower. These loans don’t require credit checks and usually have the lowest interest rates.

The next options are Federal PLUS Loans or Private Loans. Federal loans offer the same interest rates to all borrowers. Most private lenders offer different interest rates to each borrower based on the borrowers' credit ratings. For many borrowers, federal loans offer better borrowing terms and costs, but if you have a better credit rating private lenders might offer you lower interest rates.

Borrow from the best loan programs first. If you need to borrow more than those borrowing limits, borrow additional funds from the next loan program. If you want to borrow more than the new PLUS annual ($20,000) and aggregate ($65,000) limits, you could apply for PLUS loans and additional private loans.

Loan Program Information

• Federal Direct Subsidized & Unsubsidized Student Loans — These federal student loans don't require credit checks. Subsidized loans are interest free during school, but require financial need. Unsubsidized loans don't require financial need.
• Federal Parent (PLUS) Loans for Undergraduate Students — For parents of dependent undergraduate students.
• Federal Graduate Student PLUS Loans — Additional loan for eligible graduate students who borrowed their maximum Federal Unsubsidized Loans.
• Private Loans — Unless you have a better credit rating, these loans usually charge higher interest rates than federal loans. 
• Loan Repayment information and resources.

Applying for Federal Loans

To apply for federal loans, you must complete all these steps every year.

1. Submit the Free Application for Federal Student Aid (FAFSA).
2. Wait for your Award Notification, which will include your loan limits.
3. For Subsidized and Unsubsidized Student Loans, follow the instructions for accepting aid. 
4. For PLUS Loans, follow the Parent (PLUS) Loan instructions or the graduate student Grad PLUS instructions.

New borrowers at TU, must also complete Federal Loan Counseling and Master Promissory Notes.