What is a loan?
A loan is money borrowed from the federal government or a private source like a bank
or financial institution, and must be paid back with interest. Your financial need
at UNT Dallas is determined by the FAFSA. The application is needed annually to be
considered for federal, state, and institutional aid. You are not required to take
a student loan just because it is awarded to you. Requirements for Direct Subsidized,
Unsubsidized and Parent Plus loans differ based on eligibility and federal guidelines.
Make sure you understand how interest is calculated and the fees associated with your
loan. The interest rate assigned to your loan at the time of origination is fixed
and will not change for the life of the loan. The interest rate for a federal student
loan varies depending on:
- the loan type and
- the first disbursement date of the loan (for most types of federal student loans).
Types of Loans
Federal
- Direct Subsidized Loans are available to undergraduate students with financial need.
- Direct Unsubsidized Loans are available to undergraduate and graduate students; there
is no requirement to demonstrate financial need.
- Direct PLUS Loan is commonly referred to as a parent PLUS loan when made to a parent,
and as a grad PLUS loan when made to a graduate or professional student.
Private
- Generally, it is more expensive than federal loans, so students and their family should
consider obtaining a private loan only after exhausting their federal loan eligibility