What are the benefits of the Direct Loan Program?
Federal student loans offer many benefits compared to other options you may consider when paying for college:
- The interest rate on federal student loans is fixed and usually lower than that on private loans—and much lower than that on a credit card!
- You do not need a credit check or a cosigner to get most federal student loans.
- You do not have to begin repaying your federal student loans until after you leave college or drop below half-time.
- If you demonstrate financial need, the government pays the interest on some loan types while you are in school and during some periods after school.
- Federal student loans offer flexible repayment plans and options to postpone your loan payments if you are having trouble making payments.
- If you work in certain jobs, you may be eligible to have a portion of your federal student loans forgiven if you meet certain conditions.
What do I have to do to get my loan funds?
You will have to complete a FAFSA for Direct Loan eligibility. Monitor myUNTD "To Do List" for updates and requirements. Once your file is considered complete, you will be notified about your award(s) that you must Accept or Decline via myUNTD.
First-time student loan borrowers at UNT Dallas must also complete the online Entrance Counseling requirements and have a valid MPN on file.
Can I go ahead and complete the loan counseling now?
Yes. If you are a new borrower at UNT Dallas (including transfer students), you may complete your Federal Direct Loan Entrance counseling at any time. You will need your FSA ID and enter UNT Dallas as a school to receive the results. Parent PLUS Loan borrowers do not need to complete Entrance Counseling.
Where can I find information about deferments or forbearance requests?
To find this information, please visit Federal Student Aid. To gather the form(s) needed for deferment or forbearance, you will need to contact your loan servicers(s) directly.
To find out who your loan servicer(s) is, please login to your studentaid.gov account and Visit “My Aid” to view information about all of the federal student loans and other financial aid you have received and to find contact information for the loan servicer for your loans.
Where do I find information about Federal Loan Consolidation?
Learn more about consolidation here.
What is required when I leave UNT Dallas?
- Each Federal Direct Loan borrower at UNT Dallas is required to complete Student Loan Exit Counseling shortly before completing a degree, leaving UNT Dallas (i.e., withdrawing, graduation) or ceasing half time enrollment. To complete this requirement, go to Federal Student Aid, sign in with your FSA ID, select Complete Counseling from the main menu box and then Exit Counseling. Be sure to select UNT Dallas as a school to receive notification of completion.
- You must pay your student loans (including interest or fees, if applicable) on time even if you do not finish your education, do not get a job, and/or do not feel satisfied with the education you receive.
- If you request a deferment or forbearance through your servicer, you must continue to make scheduled payments until your student loan is placed in a deferment or forbearance status.
- You must notify your student loan holder or servicer immediately of any change to your name, address, telephone number, employer, or Social Security number.
- Refer to your Promissory Note for a complete list of borrower rights and responsibilities for your student loan(s).
PLUS Loan
How do my parents apply for a loan?
The FAFSA must be completed for Federal Direct PLUS eligibility to be determined.
For detailed instructions and to apply, the parent borrower must log onto Federal Student Aid to submit the Direct Parent PLUS Request.
The U.S. Department of Education conducts a credit check to establish eligibility. You cannot have an adverse credit history. Borrowers will be notified if additional action is necessary.
What if my parent is not eligible for Federal Direct PLUS loan?
The U.S. Department of Education will run a credit history check to determine eligibility for a Direct Parent PLUS loan. The U.S. Department of Education will provide additional information to parents about other options (i.e., pursue a co-signer/endorser or appeal the denial) if there is adverse credit history. UNT Dallas will process all denials received, regardless of which option is chosen. The PLUS Denial - Additional Unsubsidized Loan Request Form will be added to the student's To Do list via MyUNTD once the denial has been processed.
What is a Federal Direct Grad PLUS loan?
A Direct Grad PLUS loan can help pay for education expenses not covered by other financial aid. The U.S. Department of Education makes Direct Grad PLUS Loans to eligible graduate or professional students through schools participating in the Direct Loan Program.
What about repayment?
There are several repayment options available that are designed to meet the individual needs of borrowers, including income-driven repayment plans that determine your monthly payment amount based on your income and family size. Your loan servicer can help you understand which repayment options are available to you. Generally, you will have 10 to 25 years to repay your loan, depending on the repayment plan that you choose. Learn about your repayment options.
To find out who your loan servicer(s) is, please login to your studentaid.gov account and Visit “My Aid” to view information about all of the federal student loans and other financial aid you have received and to find contact information for the loan servicer for your loans.
Are there any loan fees?
The terms of the sequester increase the loan fees charged to Direct Loan borrowers for Direct Subsidized/Direct Unsubsidized and Direct PLUS Loans from their statutory rates of 1 percent and 4 percent, respectively.
The FY 25 sequester fees are the same as the FY 24 sequester fees. This means for all loans where the first disbursement is made on or after Oct. 1, 2020, and before Oct. 1, 2025, the loan fees are as follows:
- 1.057% for Direct Subsidized Loans and for Direct Unsubsidized Loans. As an example, the loan fee on a $5,500 loan would be $58.13.
- 4.228% for Direct PLUS Loans (for both parent borrowers and graduate and professional student borrowers). As an example, the loan fee on a $10,000 loan would be $422.80.
Student Loan Ombudsman
If you are in a dispute about your federal student loan, contact the Federal Student Aid Ombudsman Group as a last resort. They are available to assist in resolving disputes related to Direct Loans, Federal Family Education Loan (FFEL) Program loans, Guaranteed Student Loans, and Perkins Loans.
For more information on this assistance please review their webpage.