Loans

General Requirements

The Office of Student Financial Aid administers a number of loan programs for students whose needs cannot be fulfilled in any other manner. The university participates in several low-interest, long-term loans sponsored by the federal and state governments. Applicants for all loans must complete the Free Application for Federal Student Aid (FAFSA) as part of the application process. Instructions for completing and submitting the FAFSA are included with the form. The loans are administered in adherence with accepted business practices in an effort to provide borrowers with an educational experience in personal finances as well as to ensure the continuance of existing loan funds through prompt repayment. Loan funds administered by the university vary somewhat in qualifications required, amounts that may be borrowed and terms of repayment. Specific details concerning each loan fund, including the rights and responsibilities of a borrower and the repayment schedule, may be obtained from the Office of Student Financial Aid.

The personnel in the Office of Student Financial Aid are available as financial advisors to all students whether or not they are qualified to borrow from one of the university's student loan funds. Through interviews and realistic examination of expenses and income, students often discover that borrowing is only one of the possible solutions to financial problems.

General requirements stipulate that the student must be accepted for enrollment or, if a continuing student, must be maintaining satisfactory academic progress, must not be in default on any loan made from a student loan fund at any institution, must not owe a refund on any grant previously received and must complete a Loan Entrance Counseling session before receiving the first disbursement and must complete a Loan Exit Counseling session whenever the student’s enrollment status falls below half-time, the student withdraws, or graduates from the university. Loan funds will not be disbursed until a student is registered for at least half-time status. Late registration will result in delayed financial aid disbursement.

Federal Direct Student Loan Program (Unsubsidized)

The Federal Direct Loan is designed to assist students who are maintaining Satisfactory Academic Progress toward a degree. In order to receive a Federal Direct Student loan, a FASFA must be completed as part of the application process. A student must be enrolled at least half-time and demonstrate financial need as determined by the information on the FASFA in order to receive a student loan.

Unsubsidized loans are when the student is responsible for paying the interest for the duration of his or her college career. The student also has the option to have the interest capitalized or added on to the total amount of the loan. Federal Direct Loans are a major form of self-help aid. The payments on the Federal Direct loans must be started six months after you graduate, leave school or drop below half-time enrollment.

A student must be enrolled at least half-time and demonstrate financial need as determined by the information on the FAFSA in order to receive a student loan.

The amount that a graduate student can borrow under the Federal Direct Student Loan Program is stated below:

Year Max. (unsubsidized)
For any year of study $20,5001
Graduate and professional students $138,500 – no more than $65,500 of this amount may be subsidized

The total amount of debt that the student can have from all Stafford loans combined is $138,500 as a graduate or professional student (no more than $65,000 of this amount may be subsidized loans). The graduate debt limit includes any Stafford loan received as an undergraduate.

If the student is a first-time borrower at Texas A&M University-Kingsville, he/she will have to participate in a Pre-loan Counseling Session offered by the Office of Student Financial Aid Services. For more information on Pre-loan Counseling Sessions go to Studentloans.gov

The payments on the loans will start after the student has graduated, leaves school or has dropped below half-time. The student has a six-month grace period before he/she begin to repay the loans. When a student leaves school or drops below half-time, enrollment notification will be sent as to when repayment of loans are due to begin. However, the student is responsible for beginning repayments even if he/she does not receive this information. Also, if a student withdraws or falls below half-time enrollment, the student will need to complete Loan Exit Counseling at Studentloans.gov. This also applies to graduating students.