Loans

Loans are a type of financial aid that enables students and parents to borrow money to pay for their educational expenses.

There are several sources of educational loans including the federal and state government and UTSA. Carefully read requirements of each loan type so that you can ensure you are borrowing wisely.

• Federal Direct Loans
• Federal Direct Parent PLUS Loans
• Graduate PLUS Loans
• B On Time Loan
• College Access Loan (CAL)
• Future Occupations & Reskilling Workforce Advancement To Reach Demand Loan (FORWARD)
• UTSA Clinical Teaching Education Loan Forgiveness Program
• UTSA Educational Expense Loan
• UTSA Tuition & Fee Loan
• Private/Alternative Loans

Federal Loans

Federal Direct Loans

The Federal Direct Loan program is provided by the US Department of Education and is available for undergraduate and graduate degree-seeking students who are enrolled at least half-time. Students are offered Federal Direct Loans by filling out the FAFSA and having it sent to UTSA. There are two types of Federal Direct Loans that students may be offered. Typically, these loans do not go into repayment until after a student graduates or stops attending at least half-time for six months or more. Find out the current interest rates for Federal Direct Loans from Federal Student Aid. The federal government charges an origination fee for Subsidized and Unsubsidized loans, and that amount is taken out of the disbursed amount. The origination fee charged for these loans changes, so for the most up to date rate, visit Federal Student Aid’s site.

Federal Direct Subsidized Loans

The Federal Direct Subsidized Loan is available to undergraduate students who demonstrate need as determined by the FAFSA. The interest accrued on these loans is paid for by the government while the student is enrolled. There are time limits designating how long a student can receive a subsidized loan. Find out more about these time limits. The maximum an undergraduate can be offered in a subsidized loan in a year ranges from $3,500 to $5,500 based on your class level.

Federal Direct Unsubsidized Loans

The Federal Direct Unsubsidized Loan is available to undergraduate students who have filed a FAFSA. Interest accrues on these loans while the student is in school.

Federal Direct Loan Limits

There are limitations set by Congress about how much a student can borrow in these loans both per year and during the course of study. Find out the annual and total loan limits on the Federal Student Aid’s website.

Steps to Receive a Loan

In order for a student to borrow a loan, the following steps must be completed:

• Accept a full or partial amount of loans on the student portal myUTSA account
• Complete Federal Direct Entrance Counseling online at www.studentaid.gov
• Sign an Electronic Master Promissory Note (EMPN) for your loans at www.studentaid.gov with your FSA ID

Repayment Options

Both of these loan programs offer multiple repayment plans from 10 to 30 years. The interest rate can vary, depending on the year in which the loan is taken, but will typically be no more than 6.8%. Find out more about repayment plans on Federal Student Aid’s website.

Loan Proration

Loan proration impacts undergraduate students applying for fall graduation who are receiving Federal Direct Stafford Loans.

Federal regulations require schools to prorate the Federal Direct Stafford Loan amounts for graduating undergraduate students when their final period of enrollment is less than a full academic year. The loan limit proration determines the maximum loan amount that a student may borrow for the final term of study based on the degree they are earning.

Graduating undergraduate students who are only attending the fall semester of the academic year will have their Federal Direct Stafford Loans prorated based on the number of credit hours they are enrolled.

Note: Graduate and professional students are excluded from the loan proration requirement

Loan Proration for Graduating Borrowers

Please note that the actual loan amount may be less if a student has reached their annual or lifetime aggregate loan limits prior to the fall semester.

Maximum Loan Amounts for Fall Semester

Dependent Student

Independent Student

Federal Direct Parent PLUS Loans

The Federal Direct Parent PLUS Loan is a federal loan available to parent of dependent, undergraduate students. If your student needs additional funding to help with the cost of college, parents can apply for this credit-based loan at www.studentaid.gov. Find out more about the current interest rate for Federal Direct Parent PLUS Loans and the origination fee charged for the loan. Please review repayment options for parents who borrow this loan.

How to Apply for a Federal Direct Parent PLUS Loan

Applying for a Parent PLUS Loan is simple. Biological, adoptive or step parents can apply for a Parent PLUS loan as long as their undergraduate student has a FAFSA on file. Here are the steps involved:

• Go to www.studentaid.gov
• Click on the “Log in to Start” option
• Select borrower type as “Parent Borrower” and award year
• Complete each section listed (student information, borrower information, etc.)
• Agree to a credit check and view your instant decision

After you receive your credit decision, UTSA will be notified of the outcome. If approved, your loan will be certified for the amount you requested. If denied, students will be offered an increased Federal Direct Unsubsidized Loan. Parents must also electronically sign a Master Promissory Note (MPN) on studentloans.gov. Click the link to “Complete Loan Agreement” and choose the option “PLUS MPN for Parents.

Typically, the Financial Aid Office will begin to certify the Federal Direct Parent PLUS loan in late May for the upcoming fall semester.

Graduate PLUS Loans

The Federal Direct Graduate PLUS Loan is a federal loan available to graduate students. If students need additional funding to help with the cost of college, they can apply for this credit-based loan at www.studentaid.gov. Find out more about the current interest rate for Federal Direct Graduate PLUS Loans and the origination fee charged for the loan. Please review repayment options for students who borrow this loan.

How to Apply for a Federal Direct Graduate PLUS Loan

Applying for a Graduate PLUS Loan is simple. The first step is to have a FAFSA on file. After graduate students have exhausted Federal Direct loan limits, any remaining cost can be covered by the Federal Direct Graduate PLUS loan. Here are the steps involved with applying for this loan:

• Go to www.studentaid.gov
• Click on the “Log in to Start” option
• Select borrower type as “Graduate/Professional Student Borrower” and award year
• Complete each section listed borrower information, etc.)
• Agree to a credit check and view your instant decision

After you receive your credit decision, UTSA will be notified of the outcome. Your loan will be certified for the amount you requested if approved. Typically, the Financial Aid Office will begin to certify Graduate PLUS loan in late May for the upcoming fall semester.

State Loans

B On Time Loan

The Texas B On Time Loan is a zero-interest loan for eligible Texas students to attend colleges and universities in Texas. If a student meets specific goals, the entire loan amount can be forgiven upon graduation. The Texas Higher Education Coordinating Board (THECB) is responsible for setting the loan limits for the Texas B-on-Time loan and loan amounts vary from year to year. A 3% origination fee will be deducted from the loan proceeds. Students who receive the Texas B-on-Time loan in one academic year are not guaranteed to receive it again in the following year or in subsequent years. Read more about the B on Time Loan with this Fact Sheet.

As of the 2015 Texas legislative session, the B On Time loan is no longer offered to first-time students, however, those previously offered it, can continue to receive it in future years.

Renewal Requirements

Previous recipients of the B On Time Loan can continue to receive the loan each year for a maximum of 150 credit hours. The offering of this loan is based on students meeting the following:

• File a FAFSA and meet federal financial aid eligibility requirements
• Maintain a minimum 2.5 cumulative GPA
• Successfully complete 75% of all courses attempted in the previous aid year
• Enroll full-time (minimum 12 hours) in an undergraduate degree program
• Not have exceeded 150 attempted hours toward a degree

Loan Forgiveness Criteria

A Texas B-On-Time loan will be forgiven if the student receives an undergraduate degree or certificate from an eligible institution and the student either:

• Graduated with a cumulative GPA of at least a 3.0 on a four-point scale, within: four calendar years after the date the student initially enrolls in an eligible 4-year institution, five calendar years, if the degree is in architecture, engineering,
  or any other program determined by the board to require more than four years to complete; or two calendar years after the date the student initially enrolled in a public or private two-year institution
  OR
• Graduated with a cumulative GPA of at least 3.0 on a 4.0 scale, with a total number of credit hours (including transfer hours) that is no more than six hours beyond what is required to complete the degree or certificate. Hours earned exclusively by examination and dual credit hours should not be included in the total credit hours.

IRS regulations indicate that B-On-Time loans must be reported as taxable income when they are forgiven. More information on this program is available on the Texas Higher Education Coordinating Board website www.hhloans.com.

College Access Loan (CAL)

The College Access Loan (CAL) is a non-need based state loan program administered by the Texas Higher Education Coordinating Board (THECB). The CAL loan is only available to degree-seeking students who are Texas residents. The CAL loan is considered another type of private loan that is intended to supplement traditional financial aid programs. We encourage you to consider your options for Federal financial aid loans before applying for an alternative loan. Find out more about the interest rate and fees associated with borrowing this loan on the state’s website.

Student Eligibility Requirements

• Students must be enrolled at least half-time per semester
• Students must be making Satisfactory Academic Progress (SAP) every semester
• Students MUST be Texas Residents or classified as HB 1403 in order to be eligible to receive the CAL loan
• Federal Direct Loan eligibility will be taken into consideration whether or not the student has accepted or declined the loans
• Students need to be credit-worthy or have a credit-worthy co-signer in order to pursue a CAL loan

How to Apply

To apply for a CAL, follow these steps:

• Students must log in to the THECB website and complete the CAL Loan application

Future Occupations & Reskilling Workforce Advancement To Reach Demand Loan (FORWARD)

The Future Occupations & Reskilling Workforce Advancement To Reach Demand (FORWARD) Loan Program is a non-need-based state loan program administered by the Texas Higher Education Coordinating Board (THECB). The FORWARD loan is only available to degree-seeking students who are Texas residents. The FORWARD loan is considered another type of private loan that is intended to supplement traditional financial aid programs. We encourage you to consider your options for Federal financial aid loans before applying for an alternative loan. Find out more about the interest rate and fees associated with borrowing this loan on the state’s website.

Student Eligibility Requirements

• Students MUST be Texas Residents to be eligible to receive the FORWARD loan
• Students must be registered with Selective Service, or be exempt
• Students must be making Satisfactory Academic Progress (SAP) every semester
• Students need to be credit-worthy or have a credit-worthy co-signer to pursue a FORWARD loan
• Student must NOT exceed manageable loan debt calculated by the THECB.
• Student must be enrolled in a High-Demand Credential program that the student will be able to complete in two years or less
• Federal Direct Loan eligibility will be taken into consideration whether or not the student has accepted or declined the loans

How to Apply

To apply for FORWARD, follow these steps:

• Students must log in to the THECB website and complete the FORWARD Loan application.

UTSA Loans

UTSA Clinical Teaching Education Loan Forgiveness Program

The UTSA Clinical Teaching Education Loan Forgiveness Program was established to help student teachers with expenses during the extremely important semester of student teaching. All students approaching their student teaching semester are eligible to apply. Priority will be based on financial need and critical shortage field status. Critical shortage fields are deemed by the state to be Math, Science, Special Education, Languages other than English, and ESL/Bilingual Education.

Requirements to Apply for the Loan

Students must meet the following requirements to be eligible to receive the UTSA Clinical Teaching Education Loan Forgiveness:

• Be enrolled in the Clinical Teaching course for the semester in which they apply for the loan.
• Completed the Free Application for Federal Student Aid (FAFSA) and be packaged for financial aid for the academic semester they are applying for the loan
• Submit the UTSA Education Loan Forgiveness Program Application to the Office of Professional Preparation and Partnerships
• Must not have received the UTSA Education Loan Forgiveness in a prior year
• Students must meet Satisfactory Academic Progress requirements.

How to Apply

Students can obtain and download the UTSA Education Loan Forgiveness Program Application on the Clinical Teaching website.

Students will be able to upload their completed application to the Clinical Professional Experiences rolling Blackboard by the deadline for the appropriate term. Please refer to the Clinical Teaching’s website for the deadline of when the application must be submitted for the correct term.

Any applications that are submitted incomplete will delay the process of being offered this funding.

UTSA Educational Expense Loan

The UTSA Educational Expense Loan is a short-term loan available to undergraduate and graduate students who need additional assistance in purchasing books, educational supplies, etc.

The maximum offer is $500 and there is a 5% annual interest fee associated with this loan. If you are eligible to receive this loan, you will only receive the funds either by direct deposit or paper check. We encourage you to set up your direct deposit with Fiscal Services before you apply for this loan in order to receive funds in a timely manner.

Who Can Apply?

To qualify for the Educational Expense Loan, you must:

• Not owe a balance to the university;
• Have no financial holds (Fiscal Services, parking, library fines, etc)
• Be enrolled a minimum of half-time status
  • Undergraduate students half-time enrollment = six (6) hours
  • Graduate students half-time enrollment = four (4) hours for fall and spring terms; three (3) hours for summer term

  *If you are under the age of 18, you will not be eligible to submit an electronic application and signature. You will be required to make an appointment with the One Stop Enrollment Center in order to apply for this loan. You and your cosigner will be required to be present with a valid picture I.D. at a set day & time given or the Educational Expense Loan will not be processed.

  When Can I Apply?

  The UTSA Educational Expense Loan application will be made available on myUTSA account on the following dates:

  Summer 2024:

  • Summer 1 – May 24
  • Summer 2 – July 2

  Fall 2024:

  Spring 2025:

  How do I apply?

  You will apply for the Educational Expense Loan online by logging into your myUTSA Account and follow the steps below. Note: before you get started, please update your address and phone number if it is not currently valid.

  1. Under the Quick Launch card, click on “Go to Classic View”
  2. Select the “Fiscal Services” tab or the “Financial Aid” tab at the top
     Note: You will be prompted to authenticate yourself through your DUO account when trying to access information after this point. Don’t have a DUO account? Click here to learn how to set it up.
  3. Select “Educational Expense Loan Application – eSignature”
  4. Click the “Complete Application” box

  This process will pull up the Educational Expense Loan application. Please review the Account and Loan Information for the term, if you have an outstanding balance that is not currently fully covered by your financial aid or the UTSA Tuition & Fee Loan, then the $500 from the Educational Expense Loan will be applied to your balance. If you still need to complete a Tuition & Fee Loan first, please exit this application and click on the Tuition & Fee Loan Application – eSignature link. Once the Tuition & Fee Loan is applied to your account, then you may return to complete the Educational Expense Loan application.

  To complete the application you will need:

  1. Your employer information
  2. Your spouse’s employer information (if married)
  3. References for three (3) separate individuals — at least two (2) individuals must live at a different address than you and a minimum of 2 references must live in the United States. Without adequate references, your application will be declined.

  You will click the “Submit Application” box and will review the Promissory Note where you will e-sign in three different areas. Then, you will click on the “Submit Electronic Signature” box for your application to be sent to be reviewed.

  All applicants for the Educational Expense Loan agree that the transaction may be conducted electronically, including but not limited to using digital signatures, in accordance with 2054.060. TX GOVT. CODE.

  Application Processing Times

  Once you submit your electronically signed Educational Expense Loan, your application is sent to be reviewed by Financial Aid and Scholarships. It takes one business day for us to review submitted applications.

  Approved Applications

  If there are no errors present in your application, then it will be reviewed and approved. Once approved, you will receive a notification email to your preferred email as indicated in your myUTSA account. At this point, you will see the Educational Expense Loan on your billing statement. Fiscal Services will begin processing the request for $500 and will release the funds by direct deposit or refund by paper check to the address you have listed on myUTSA. We encourage you to set up your direct deposit with Fiscal Services before you apply for this loan in order to receive funds in a timely manner.

  Once approved, your application is valid and you will now be responsible for paying it back by the deadline. No further action will be necessary on your part.

  Educational Expense Loan Promissory Note

  A copy of your Educational Expense Loan promissory note will be emailed to your preferred email account within 2-3 business days after the approval of your loan. You will want to print and retain this note for your records. Any questions regarding your promissory note should be directed to the Fiscal Services office.

  Declined Applications

  Errors in your application could cause us to decline your application. An example would be providing insufficient references or not completing a tuition & Fee Loan application to cover your balance. If declined, you will receive an email to your preferred email account as indicated in myUTSA. You will need to make corrections or clear your balance before reapplying for this loan.

  Loan Repayment

  Your promissory note will indicate the date the balance is due and how much interest will be charged. The interest rate assessed is 5% per year, prorated to 90 days. The due dates are as follows:

  Fall: November 30
  Spring: April 30
  Summer: July 31

  If not paid by the deadlines, then a $10 late fee will be assessed and interest will continue to accrue. For more details regarding due dates, repayment, and repercussions for non-payment, please refer to your Master Promissory Note.

  UTSA Tuition & Fee Loan

  The UTSA Tuition and Fee Loan is not like a traditional loan. The tuition and fee loan is a way to delay payment if you cannot pay your tuition and fee bill by the payment deadline. The University charges a 5% annual interest rate for this delay of payment.

  Who can apply?

  To qualify for a tuition and fee loan you must:

  • Be enrolled in a minimum of 3 credit hours
  • Have no financial holds (Fiscal Services, parking, library fines, etc)
  • Be at least 18 years of age (or have a cosigner). If you are under the age of 18, you will be unable to submit an electronic signature for the promissory note and must submit it in person. Please email faloans@utsa.edu from your myUTSA email account. In the email, include your name, myUTSA ID, phone number and the name of your cosigner. A financial aid officer will contact you to schedule an appointment to meet with you and your cosigner in the John Peace Library (JPL) at Main Campus.

  You do not have to be a recipient of financial aid to apply for a Tuition and Fee Loan.

  Application Availability

  The Tuition and Fee Loan online application is available:
  Fall: August 1
  Spring: December 1
  Summer: May 1

  Application Process

  To complete the application you will need:

  1. Your employer information
  2. Your spouse’s employer information (if married)
  3. References for 3 separate individuals — at least 2 must live at a different address than you and a minimum of 2 references must live in the United States. Without adequate references, your application will be declined.

  To submit the application, follow the below steps.
  Before you get started, please update your address and phone number if it is not currently valid.

  1. Log into your myUTSA Account
  2. Under the Quick Launch card, click on “Go to Classic View”
  3. Select the “Financial Aid” tab at the top
  4. Select “Tuition and Fee Loan Application – eSignature”
  5. Select the applicable enrollment term in the drop-down box and click “Submit Term”
  6. This process will pull up the online tuition and fee loan application. You are welcome to request up to the amount of your tuition and fees or a smaller amount. The amount of any pending financial aid is taken into consideration. You may not exceed your tuition and fees. Please remember that housing, meal plan and other charges like parking cannot be enveloped in the tuition and fee loan.

  Once the application is completed, you can electronically sign the application to submit for processing by Financial Aid and Scholarships.

  All applicants for the Tuition and Fee Loan agree that the transaction may be conducted electronically, including but not limited to using digital signatures, in accordance with 2054.060. TX GOVT. CODE.

  Application Processing Time

  Once you submit your electronically signed Tuition and Fee Loan, your application is sent to be reviewed by Financial Aid and Scholarships. It takes one business day for us to review submitted applications. As such, tuition and fee loans will only be available up until the close of business on the day of the payment deadline. NOTE: During the summer semester, tuition and fee loans must be submitted and electronically signed no later than 4:30pm on the day of the payment deadline.

  It is very important to not wait until the payment deadline to submit your electronically signed Tuition and Fee Loan. If you decide to resubmit the Tuition and Fee Loan after being declined, it will take another business day for the new application to be reviewed.

  Approved Applications

  If there are no errors present in your application, then it will be reviewed and approved. Once approved, you will receive a notification email to your preferred email as indicated in your myUTSA account. At this point, you will see the Tuition and Fee Loan on your billing statement. Once approved, your application is valid and you will now be responsible for paying it back by the deadline. No further action will be necessary on your part.

  Tuition and Fee Loan Promissory Note

  A copy of your Tuition and Fee Loan promissory note will be emailed to your preferred email account within 2-3 business days after the approval of your loan. You will want to print and retain this note for your records.

  Declined Applications

  Errors in your application could cause us to decline your application. An example would be providing insufficient references. If declined, you will receive an email to your preferred email as indicated in myUTSA account. At that point, you would need to either resubmit your application for reconsideration or, if the deadline to submit has passed, make other payment arrangements for your tuition and fees to prevent your classes from dropping. If your application is declined, your Tuition and Fee Loan will not be valid.

  It is very important to not wait until the payment deadline to submit your electronically signed Tuition and Fee Loan. If you decide to resubmit the Tuition and Fee Loan after being declined, it will take another business day for the new application to be reviewed.

  Loan Repayment

  Your promissory note will indicate the date the balance is due and how much interest will be charged. The interest rate assessed is 5% per year, prorated to 90 days. The due dates are as follows:

  Fall: November 30
  Spring: April 30
  Summer: July 31

  If not paid by the deadlines, then a $10 late fee will be assessed and interest will continue to accrue. For more details regarding due dates, repayment, and repercussions for non-payment, please refer to your Master Promissory Note.