These loans are for students with financial need, as determined by the Federal Processer based on the information reported on the FAFSA.   The lender is the U.S. Department of Education.

Subsidized means the federal government pays the interest as long as half-time enrollment is maintained. Thereafter, payment on the loan interest becomes your responsibility.

Effective for new Federal Direct Subsidized Loans made on or after July 1, 2012, and before July 1, 2014: the interest subsidy usually paid by the federal government during the six-month grace period is to be eliminated. While the repayment period will still begin 6 months after the student is no longer enrolled at least half-time, the interest that accrues during those six months will now be payable by the student rather than be subsidized by the federal government. Federal Direct Subsidized Loans received prior to July 1, 2012 are not affected. Additional information on this change can be found here.

As a result of legislation enacted in July 2012, eligibility for the Direct Loan interest subsidy will be limited for new borrowers on or after July 1, 2013.  The law restricts the period of time for which a borrower may receive subsidized loans, in the aggregate, to 150 percent of the published length of the student's current educational program.  Once the student reaches that limit, he or she may borrow only unsubsidized loans, and interest begins to accrue on the student's outstanding subsidized loan.  Further information regarding this change can be found here.


Annual borrowing limits are based on the student's year of study:

Dependent undergraduates

  • First year:  $5,500 (no more than $3,500 of this amount may be subsidized)
  • Second year:  $6,500  (no more than $4,500 of this amount may be subsidized)
  • Third year and beyond:  $7,500 (no more than $5,500 of this amount may be subsidized)

Independent undergraduates (and dependent undergraduates whose parents are unable to borrow under the PLUS Loan Program)

  • First year:  $9,500 (no more than $3,500 of this amount may be subsidized)
  • Second year:  $10,500 (no more than $4,500 of this amount may be subsidized)
  • Third year and beyond: $12,500 (no more than $5,500 of this amount may be subsidized)

Graduate and professional students

  • Effective Fall 2012, graduate and professional students are no longer eligible to receive subsidized loans. For more information, you can review the Department of Education's electronic Announcement.



Loan funds will not disburse (pay) until all requested documentation has been submitted, and your aid application is considered to be complete.

A note will be placed on your myUNT "To Do List" if additional steps are required before disbursement.

If the financial aid file is complete, disbursements can be made as early as ten days prior to the first day of a Fall or Spring fee payment (August/January) period. However, disbursements can also occur throughout an enrollment term upon completion of a file.

Interest Rate

The current interest rate is 4.29 percent.  All interest rates and fees are valid only from July 1, 2015 through June 30, 2016.


Repayment begins six months after enrollment drops below half-time status or upon the point of graduation.

The Project on Student Debt works to increase public understanding of rising student debt. This initiative has compiled the top 10 tips for keeping your student loans under control. The tips can be reviewed here.

PayBackSmarter is a free tool to assist you in understanding your student loan repayment options. Their repayment calculator gives you a simple, visual way to review each different plan. Additional information is available here.

For more information regarding repayment, please visit Direct Loan Repayment Plans. For information regarding deferment or forebearance, please visit Direct Loan Deferment and Forbearance.

Repayment Length

Between 10 and 25 years to repay, depending on the amount owed and repayment plan selected.

Additional Information

  • If you are a new borrower at UNTD (including transfer students), you may complete your Federal Direct Loan Entrance counseling at anytime after being awarded federal aid.  You will need your PIN number (as assigned when you signed the FAFSA) and enter University of North Texas at Dallas as a school to receive the results. You must complete the counseling before your school can make the first payment of your loan. The counseling will help you understand your responsibilities about your loan.
  • Continuing UNTD borrowers are required to complete the Financial Awareness Counseling Tool (FACT) annually. This requirement is a step in UNTD's Default Aversion Plan; our goal is to ensure that each borrower understands how to manage their student loan and the commitment that comes with the acceptance of a student loan. Above all, borrowers must realize that student loans are not grants or scholarships; they require repayment. You may complete your Financial Awareness Counseling by visiting, selecting Complete Counseling then Financial Awareness Counseling. You must complete the counseling before UNTD can make any payment of your loan.
  • The U.S. Department of Education charges an origination fee of the total amount borrowed per loan. This fee is deducted from the loan by the Department of Education before the proceeds are credited to a student's account. 
  • Borrowers must electronically sign a Federal Direct Loan Subsidized/Unsubsidized Master Promissory Note.
  • Please visit the Federal Student Aid website for more information.
  • Each Federal Direct Loan borrower at the University of North Texas is required to complete Student Exit Counseling shortly before completing a degree, leaving UNT (i.e., withdrawing, graduation) or ceasing half-time enrollment.  To complete this requirement, go to, select Complete Counseling then Exit Counseling.