Educational Loan Programs

West Texas A&M University participates in various educational loan programs offered by the federal government, the state of Texas and alternative loans by various lenders.

Financial Aid Process

Determining Eligibility

WTAMU will determine your eligibility and whether or not you qualify for subsidized loans. Federal Stafford Loan eligibility requires that you:

Be a U.S citizen or eligible non-citizen
Be enrolled or accepted for enrollment at least half time at WTAMU
Be in a degree program or a program required for certification as an elementary or secondary teacher
Meet the satisfactory academic progress standards at WTAMU
Have no unresolved defaults on federal education loans and no refunds owed on federal educational grants
Not be incarcerated

Federal Direct Stafford Loan

The Federal Direct Stafford Loan is a government-provided, low interest loan that helps students pay

for their education beyond high school.

You must complete and file the FAFSA to apply. If you do not, you will not be eligible for the Federal

Direct Stafford Loan.

Types of Federal Direct Stafford Loans

Direct Subsidized Loan

The Direct Subsidized Loan is awarded on the basis of need. You will not be charged any interest prior to repayment or during any authorized periods of deferment. During deferment, the federal government pays the interest on the loan until the time of repayment. Payment is automatically deferred until the borrower is no longer enrolled on at least half-time basis. At the time the borrower is no longer enrolled half-time, a six month grace period begins prior to entering repayment.

Direct Subsidized Loans for which the first disbursement is made on or after July 1, 2012, and before July 1, 2014 are not eligible for an interest subsidy during the six month grace period prior to entering repayment, and interest will accrue during this time period. Direct Subsidized Loans first disbursed on or after July 1, 2014 are eligible for an interest subsidy during the 6-month grace period, and interest will not accrue during this time period.

Eligibility

You must have financial need as determined by the FAFSA.
You must be enrolled at least half-time at West Texas A&M University.
You must maintain Satisfactory Academic Progress.
You may not exceed annual or lifetime aggregate loan limits. See Direct Loan Limits below.
You may not have received Direct Subsidized Loans for more than 150% of the length of your academic program. (Applicable to borrowers receiving first loan on or after July 1, 2013). See Direct Loan Limits below.

Interest Rates

Loans disbursed on or after July 1, 2024 and before July 1, 2025

Interest Rate for 2024-2025
Subsidized Direct Loans	6.53%

Origination Fees

Loan Fees for Direct Subsidized Loans and Direct Unsubsidized Loans
First Disbursement Date	Loan Fee
On or after Oct. 1, 2020, and before Oct. 1, 2025	1.057%
On or after Oct. 1, 2019, and before Oct. 1, 2020	1.059%

Loans first disbursed prior to Oct. 1, 2019, have different loan fees.

Other Important Direct Loan Information and Helpful Links

Please see the Direct Loan Limits and Direct Loan Counseling information below.
StudentAid.gov

For information on repaying your student loans, click here.

Student loans will be submitted to the National Student Loan Data System (NSLDS) and will be accessible by guaranty agencies, lenders, and schools determined to be authorized users of the data system.

Direct Unsubsidized Loan -

The Unsubsidized Direct Loan is not awarded on the basis of need. You are responsible for any accruing interest during in-school and deferment periods. Interest accruing during those periods may be paid or capitalized as agreed by the borrower and lender.

Payment is automatically deferred until the borrower is no longer enrolled on at least half-time basis. At the time the borrower is no longer enrolled half-time, a six month grace period begins prior to entering repayment. Interest on Direct Unsubsidized Loans continues to accrue during the grace period.

Eligibility

You must complete the Free Application for Student Financial Aid (FAFSA).
You must be enrolled at least half-time at West Texas A&M University.
You must maintain Satisfactory Academic Progress.
You may not exceed annual or lifetime aggregate loan limits. See Direct Loan Limits below.

Interest Rates

Loans disbursed on or after July 1, 2024 and before July 1, 2025

Interest Rate for 2024-2025
Unsubsidized Direct Loans - Undergraduate	6.53%
Unsubsidized Direct Loans - Graduate or Professional Students	9.08%

Origination Fees

Loan Fees for Direct Subsidized Loans and Direct Unsubsidized Loans
First Disbursement Date	Loan Fee
On or after Oct. 1, 2020, and before Oct. 1, 2024	1.057%
On or after Oct. 1, 2019, and before Oct. 1, 2020	1.059%

Loans first disbursed prior to Oct. 1, 2019, have different loan fees.

Other Important Direct Loan Information and Helpful Links

Please see the Direct Loan Limits and Direct Loan Counseling information below.
StudentAid.gov

For information on repaying your student loans, click here.

Direct Loan Limits

Annual and lifetime (total debt) limits for Direct Subsidized and Unsubsidized Loans are mandated by the U.S. Department of Education. The amounts include the outstanding principal balance on the loan(s) and not interest or other charges incurred.

Year	Dependent Students (except students whose parents are unable to obtain PLUS Loans)	Independent Students (and dependent undergraduate students whose parents are unable to obtain PLUS Loans)
First-Year Undergraduate Annual Loan Limit	$5,500—No more than $3,500 of this amount may be in subsidized loans.	$9,500—No more than $3,500 of this amount may be in subsidized loans.
Second-Year Undergraduate Annual Loan Limit	$6,500—No more than $4,500 of this amount may be in subsidized loans.	$10,500—No more than $4,500 of this amount may be in subsidized loans.
Third-Year and Beyond Undergraduate Annual Loan Limit	$7,500—No more than $5,500 of this amount may be in subsidized loans.	$12,500—No more than $5,500 of this amount may be in subsidized loans.
Graduate or Professional Students Annual Loan Limit	Not Applicable (all graduate and professional students are considered independent)	$20,500 (unsubsidized only)
Subsidized and Unsubsidized Aggregate Loan Limit	$31,000—No more than $23,000 of this amount may be in subsidized loans.	$57,500 for undergraduates—No more than $23,000 of this amount may be in subsidized loans. $138,500 for graduate or professional students—No more than $65,500 of this amount may be in subsidized loans. The graduate aggregate limit includes all federal loans received.

*All "Maximum Total Debt" amounts (lifetime limits) include both DIRECT and FFELP subsidized and unsubsidized loans.

Effective for new Direct Loans for which the first disbursement is made on or after July 1, 2013, Direct Subsidized Loan eligibility is limited to a maximum of 150% of the student’s current academic program length.

Borrowers may receive Direct Subsidized Loans for no more than 150% of the length of the current academic program (ex: 6 years for a 4 year degree)
Once a borrower has received Direct Subsidized Loans for 150% of the length of their program, the borrower’s future Subsidized Loan eligibility will end.
A student who has received Direct Subsidized Loans for 150% of the length of their program and continues enrollment beyond that point will lose all subsidies on previously received Direct Subsidized Loans and would be required to pay all accumulated interest.
This policy is in addition to, and not in place of, the lifetime aggregate loan limits currently in place.

For information on repaying your student loans, click here.

Direct Loan Counseling

Entrance Counseling

If you have not previously received a Direct Loan the Federal Government requires you to complete entrance counseling to ensure that you understand the responsibilities and obligations you are assuming.

If you are completing entrance counseling to borrow a loan as an undergraduate student, then the entrance counseling will fulfill counseling requirements for Direct Subsidized Loans and Direct Unsubsidized Loans.

If you are completing entrance counseling to borrow a loan as a graduate or professional student , the entrance counseling will fulfill counseling requirements for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans.

To complete Entrance Counseling as an undergraduate student or graduate/professional student, you will need:

Approximately 20-30 minutes to complete.
Entrance Counseling must be completed in a single session.
Your FSA ID
If you are a new user or have forgotten your FSA ID, click here.
Students must log in using their own FSA ID to complete Entrance Counseling. Use of another person's FSA ID constitutes fraud. Use only your own FSA ID information.
Name(s) of the school(s) you wish to notify of counseling completion

There are two ways to access Entrance Counseling:

Log in to www.studentaid.gov using your FSA ID
- Select "Complete Counseling" on the left-hand navigation bar
- Select "Entrance Counseling" under "Choose Counseling Type"
If you log in, you will be able to:
- See your federal student loan information available in the National Student Loan Data System (NSLDS)
- Notify schools of counseling completion
- View proof of counseling completion
Select "Getting Loans" from the top navigation bar on the StudentLoans.gov home page and then "Counseling Demo." Select "Entrance Counseling" under "Choose Counseling Type."
- You must log in to officially complete the counseling session (option 1 above)
- The "Counseling Demo" option is informational and allows school administrators to see counseling content without logging in

Exit Counseling

Exit counseling provides important information you need to prepare to repay your federal student loan(s).

If you have received a subsidized, unsubsidized or PLUS loan under the Direct Loan Program or the FFEL Program, you must complete exit counseling each time you:

Drop below half-time enrollment
Graduate
Leave School
A hold will be placed on your academic record until Exit Counseling is completed.
Names, addresses, e-mail addresses and phone numbers for:

Your next of kin
Two references who live in the U.S.
Your future employer (if known)

Approximately 20-30 minutes to complete.
Exit Counseling must be completed in a single session.
Your FSA ID
If you are a new user or have forgotten your FSA ID, click here.
Students must log in using their own FSA ID to complete Exit Counseling. Use of another person's FSA ID constitutes fraud. Use only your own FSA ID information.
Name(s) of the school(s) you wish to notify of counseling completion
At the end of the exit counseling session, you will be asked for information that will be included as part of your loan records. You must provide the following:

To complete exit counseling, you will need:

There are two ways to access exit counseling:

Log in to studentaid.gov using your FSA ID
- Select "Complete Counseling" on the left-hand navigation bar
- Select "Exit Counseling" under "Choose Counseling Type"
If you log in, you will be able to:
- See your federal student loan information available in the National Student Loan Data System (NSLDS)
- Notify schools of counseling completion
- View proof of counseling completion
Select "Getting Loans" from the top navigation bar on the StudentLoans.gov home page and then "Counseling Demo." Select "Exit Counseling" under "Choose Counseling Type."
- You must log in to officially complete the counseling session (option 1 above)
- The "Counseling Demo" option is informational and allows school administrators to see counseling content without logging in

Completing the Master Promissory Note

All loan applicants must complete a Direct Loan Master Promissory Note. Students who have previously borrowed in the FFELP (i.e. chose a lender) will need to complete this step. Only students who are transfers and previously borrowed in the Federal Direct Loan Program may omit this step. DL Master Promissory Notes may be completed as soon as you determine you wish to borrow. The link to complete the MPN is https://studentloans.gov/myDirectLoan/index.action. When the MPN has been completed and WTAMU has completed the loan certification, the loan(s) will be scheduled for disbursement.

Federal Direct PLUS Loan and Federal Direct Graduate PLUS

The Federal Direct PLUS Loan is designed for parents of undergraduate dependent students to borrow funds in the parent’s name on the student’s behalf to assist with their college student’s educational expenses.

All parents may apply for a PLUS Loan as eligibility is not based on financial need. However, creditworthiness is used in determining eligibility. The parent borrower’s credit bureau report will be reviewed and must meet the lender’s established borrowing guidelines. A borrower cannot have an adverse credit history.

Repayment of principle and interest begins 60 days after the PLUS loan is fully disbursed.

If a parent borrower is declined then the student may be awarded up to $2000 in additional unsubsidized student loans per semester.

The Federal Direct Graduate PLUS Loan is designed for graduate students who need to borrow funds in addition to their unsubsidized Stafford eligibility.

Graduate PLUS Loans may be deferred while the student is in school but unlike Stafford loans,

there is no grace period before payment begins.

Interest Rates

Loans disbursed on or after July 1, 2024 and before July 1, 2025

Interest Rate for 2024-2025
Direct Plus Loans - Parents and Graduate or Professional Students	9.08%

Origination Fees

Loan Fees for Direct Plus Loans
First Disbursement Date	Loan Fee
On or after Oct. 1, 2020, and before Oct. 1, 2025	4.228%
On or after Oct. 1, 2019, and before Oct. 1, 2020	4.236%

Loans first disbursed prior to Oct. 1, 2019, have different loan fees.

Complete step-by-step information for completing the Federal Direct PLUS is located at:

https://studentaid.gov/mpn/parentplus/landing

The step-by step process for the Federal Direct Graduate PLUS is located at:

https://studentaid.gov/plus-app/grad/landing

For more information concerning Federal Direct Student and Parent Loans,

go to the official U.S. Department of Education website at :

https://studentaid.gov/understand-aid/types/loans