Student Loans

This is an archived copy of the 2015-2016 catalog. To access the most recent version of the catalog, please visit http://catalog.twu.edu.

The University administers loan programs whereby students can borrow a substantial part of the expenses of pursuing university study. Repayment of loans begins six months after the recipient has ceased enrollment as at least a half-time student (6 semester credit hours per semester). Students who receive loans as part of their financial aid award must complete Entrance Loan Counseling prior to receiving the loan funds. Entrance Loan Counseling may be completed online at StudentLoans.gov , on the TWU Financial Aid website for non-federal loans, or in person by calling 940-898-3067 to schedule an appointment.

For more information on the loans listed below, please visit the TWU Financial Aid website .

Federal Direct Stafford Student Loans

Federal Direct Subsidized Stafford Student Loan

This loan is available to undergraduate students only on the basis of documented financial need. Repayment and interest are deferred until six months after the student graduates or ceases to be enrolled for at least six semester credit hours. The interest rate is variable up to 8.25% and is adjusted each year on July 1. The actual interest rate will be printed on the Disclosure Statement which the student will receive from the lender. The lending institution will notify the student borrower of interest rate changes throughout the life of the loan. Distinctions between this loan and the Federal Direct Unsubsidized Stafford Loan are that the Federal Direct Unsubsidized Stafford Loan does not require documented financial need and interest on the Federal Direct Unsubsidized Stafford Loan begins to accrue when funds are disbursed.

Federal Direct Subsidized Stafford Loan Annual Maximums

Borrower's Academic Level Maximum Annual Amount
Freshman$3,500
Sophomore$4,500
Junior$5,500
Senior$5,500

Federal Direct Unsubsidized Stafford Loan

This loan is available to undergraduate students or graduate/professional students. Interest accrues from the date of disbursement at a variable rate not to exceed 9% annually. The federal government sets the rate each year. Graduate students may borrow up to $20,500 annually with an aggregate maximum of $138,500 (including subsidized and unsubsidized loans borrowed at the undergraduate level).

Cumulative maximums for Federal Direct Subsidized and Unsubsidized Stafford Loans for each student category

Dependent Undergraduate Subsidized + Unsubsidized$31,000
Independent Undergraduate Subsidized only$23,000
Independent Undergraduate Subsidized + Unsubsidized$57,500
Graduate (Includes undergraduate loans) Subsidized only$65,000
Graduate (Includes undergraduate loans) Subsidized + Unsubsidized$138,500

College Access Loan

The University participates in the state loan program which was authorized by an amendment to the state constitution on November 2, 1965. Students who are legal residents of Texas and those eligible to pay Texas resident tuition rates may apply for this type of loan.

This loan is offered by the Texas Higher Education Coordinating Board to undergraduate and graduate students who are Texas residents or who are eligible to pay Texas resident tuition. This loan is not limited to students with documented financial need. Simple interest of 6.0% begins to accrue when funds are disbursed. Repayment begins six months after the student graduates or ceases to be enrolled for at least six semester credit hours. In addition to the Free Application for Federal Student Aid and the TWU application for Student Financial Aid, applicants must complete a College Access Loan application including the notarized signature of a credit-worthy payment guarantor (co-signer) other than a spouse. Students may borrow up to the cost of attendance annually. The aggregate/cumulative loan limit is $45,000. The minimum monthly payment is $50.00. Principle and interest must be paid in full within 10 years after repayment begins.

Federal Perkins Student Loan

The University participates in the Perkins Loan Program authorized by the National Education Act of 1958 (Public Law 85-864) as amended by the Education Amendments of 1976 (Public Law 94-482). This loan is available to undergraduate and graduate students on the basis of exceptional financial need. Repayment and interest are deferred until nine months after the student graduates or ceases to be enrolled for at least six semester credit hours. The current interest rate is 5% annually. Under certain circumstances a portion of the loan may be canceled for designated public service.

Federal Perkins Student Loan Maximums

Borrower's Academic Level Annual Limit Aggregate/Cumulative Maximum
Undergraduate$5,500$27,500
Graduate$8,000$60,000

Federal Nursing Student Loan Program

The University participates in the Nursing Student Loan Program which was established by the Nursing Training Act of 1964. This loan is available to undergraduate and graduate nursing majors on the basis of financial need. The interest rate is currently 5% annually. Repayment and interest are deferred until nine months after a borrower graduates or ceases to be enrolled for at least six semester credit hours in the College of Nursing.

Federal Nursing Student Loan Maximums

Borrower's Academic Level Annual Maximum
Freshman & Sophomore$2,500
Junior & Senior$4,000
Graduate$4,000
The aggregate/cumulative maximum is $13,000 including amounts borrowed for both undergraduate and graduate study.

The Ella Kate and Wallace Ralston Medical and Nursing Student’s Loan Fund

The Ella Kate and Wallace Ralston Medical and Nursing Student’s Loan Fund was established under the will of the late Ella Kate Ralston of Houston, TX. Mrs. Ralston was the widow of Dr. Wallace Ralston, a prominent Houston physician who specialized in diseases of the eye until his death in 1951. To the extent funds are available; this fund provides loans to full-time medical or nursing students who are Texas Residents and citizens of the United States. Loans up to $5,000 annually for medical students and up to $2,000 annually for nursing students are awarded on the basis of financial need. Preference will be given to junior and senior students, but loans may be granted to sophomores if funds are available.

Texas B-On-Time Loan (BOT)

The Texas B-On-Time Loan is awarded to Texas residents who are eligible for federal financial aid and who meet the following conditions:

  • Are graduates of public or accredited private high schools in Texas not earlier than the 2002-2003 academic year,
  • Completed the recommended or advanced high school curriculum,
  • Have not yet earned a bachelor’s degree,
  • Are enrolled full-time in an undergraduate degree or certificate program at an eligible institution,
  • Have completed a FAFSA
  • Have not completed 150 semester credit hours,
  • Have been certified by the financial aid office as eligible for the Texas B-on-Time Loan.

Loan amounts are up to $8,000 annually and any amounts borrowed may be cancelled or forgiven if the borrower:

  • Finishes a four-year degree in four years, having taken no more than 6 semester credit hours beyond what is required for his or her major, or
  • Finishes a five-year degree in five years, having taken no more than 6 semester credit hours beyond what is required for his or her major, and
  • Graduates with a cumulative GPA of 3.0 or higher.

A 3% origination fee will be deducted from each loan. Once a student has received a loan through this program, to maintain eligibility for future disbursements, the student must make satisfactory academic progress in the first year and complete at least 75% of semester credit hours attempted with a cumulative GPA of 2.5 or higher in second and subsequent years.

In cases where borrowers do not meet requirements to have the loan forgiven, repayment will begin 6 months after the student ceases to be enrolled. There will be no interest charged on the loan unless a judgment is obtained against the borrower for default in payment. If interest in assessed, it will be at the rate specified in section 304.003 of the Texas Finance Code.

Federal Direct Parent Loan for Undergraduate Students (PLUS)

This loan is available to the parent of a dependent student for the student’s educational expenses. Parents may borrow up to the student’s cost of attendance minus other financial aid annually. Generally, repayment begins 60 days after the final loan disbursement for the loan period but parents may choose to defer repayment until the student graduates or leaves school. Interest accrues from date of disbursement at a variable rate not to exceed 9% annually. The federal government sets the rate each year. This loan does not require an evaluation of financial need to determine eligibility but may require a review of the parent borrower’s credit history.