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. 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. The interest rate is variable (the current
rate is 3.86%) and is adjusted in July of each per federal guidelines. The rate is
capped at 8.25%.
For Unsubsidized Federal Direct Loans, the interest starts to accrue as soon as the
loan is disbursed to you. The current interest rate is 3.86%. 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) and undergraduate-level Entrance Counseling. Complete both at www.StudentLoans.gov for the Direct Loan program. 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.
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, and Perkins 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 is 6.84%.
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.