Unlike grants, loans from any source must be repaid at some point. Most government
loan programs offer low interest and/or deferred interest payments. Most do not require
re-payment of the principle and accrued interest until you graduate or cease to be
enrolled at least half-time.
Subsidized and Unsubsidized Federal Direct Loans
Subsidized and Unsubsidized Federal Direct Loans are low-interest loans that help
eligible students pay for their education. This program enables you to borrow directly
from a the federal government. You must be enrolled at least half-time to apply. The
loan amounts are determined by the results of the FAFSA and your year in college (specific
amount available here). Repayment on Subsidized and Unsubsidized Direct Loans begins six months after you
are no longer enrolled at least half-time or leave school completely.
Subsidized Federal Direct Loans are based on financial need as determined by the FAFSA.
The federal government will pay the interest on the subsidized loan as long as the
student remains enrolled at least half-time. Interest rates are adjusted July 1st
of each year per federal guidelines. The current, fixed rate can be found here.
For Unsubsidized Federal Direct Loans, the interest starts to accrue as soon as the
loan is disbursed to you. The current, fixed rate can be found here. The interest must be paid by you during enrollment periods. You may defer interest
payments on the unsubsidized loans as long as you continue to be enrolled at the University
at least half-time.
If you are borrowing loans at the University of Dallas for the first time, and if you accept a subsidized and/or unsubsidized loan, you must complete a Master Promissory Note (MPN) for the Direct Loan program and complete Entrance Counseling at studentaid.gov.
If you are a continuing student at the University who participated in the Federal Direct Loan program during a previous academic year,
you do not have to complete an additional MPN or Entrance Counseling. Active MPNs
(loan agreements) are valid for 10 years.
Parent Loan for Undergraduate Students (PLUS)
PLUS loans are made to the parents of dependent students to assist them in paying
for post-secondary education. A FAFSA must be completed in order to receive PLUS loan
funds. PLUS borrowers may receive an amount up to their dependent child’s cost of
education minus other financial aid, including federal Subsidized and Unsubsidized
Direct Loans. Parent borrowers are subject to a credit evaluation. (If a PLUS loan
is denied to your parents, as a dependent student you may be eligible for an additional
amount of an Unsubsidized Direct Loan). The current interest rate on the PLUS loan
can be found here.
Repayment of a PLUS loan begins within 60 days of the final disbursement, unless the
parent borrower qualifies for deferment. Interest must be paid or capitalized (added
to the principal) if payment is deferred. To determine eligibility for deferment,
the borrower must contact the lender.
Please see the Private Loan information page for lender options and comparisons.