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|
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|
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. The Perkins Loan Program is ending and set to expire on October 1, 2017.
Federal Perkins Student Loan Maximums
|Borrower's Academic Level||Annual Limit||Aggregate/Cumulative Maximum|
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|
|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.
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.