Loans

Student loans help undergraduate, graduate and professional students pay eligible educational expenses. Loans are a form of financial assistance that must be repaid, generally with interest.

Loan availability and amounts depend on program enrollment, dependency status, financial need, grade level and other eligibility requirements.

 

Federal loan programs

Direct Subsidized Loan

Direct Subsidized Loans are optional federal loans for undergraduate students who demonstrate financial need. The loan may help cover educational expenses but cannot exceed the student’s financial need. The student is responsible for repayment.

For loans first disbursed from July 1, 2026, through June 30, 2027, the fixed interest rate is 6.52%. The U.S. Department of Education generally pays the interest while the student is enrolled at least half-time, during the six-month grace period after leaving school or dropping below half-time enrollment, and during eligible deferment periods.

 

Direct Unsubsidized Loan

Direct Unsubsidized Loans are optional federal loans available to undergraduate, graduate and professional students. Eligibility is not based on financial need. The student is responsible for repayment and for interest that accrues during all periods.

For loans first disbursed from July 1, 2026, through June 30, 2027, the fixed interest rate is 6.52% for undergraduate borrowers and 8.07% for graduate or professional borrowers.

 

Direct Subsidized and Unsubsidized Loan eligibility

  • Be enrolled at least half-time in a degree-seeking program at a school that participates in the Direct Loan Program.
  • Be a U.S. citizen or eligible non-citizen.
  • Not be in default on a federal education loan or owe an overpayment on a federal education grant.

How to apply for Direct Subsidized or Unsubsidized Loans

  1. Complete the Free Application for Federal Student Aid (FAFSA).
  2. Accept the loan offer in WebRaider.
  3. Sign in to StudentAid.gov with your Federal Student Aid ID (FSA ID).
  4. Complete the Master Promissory Note (MPN).
  5. Complete entrance counseling.

 

Parent PLUS Loan for dependent undergraduate students

Parent PLUS Loans are federal loans for eligible parents of dependent undergraduate students enrolled at least half-time in a degree-seeking program. The loan may help cover the student’s cost of attendance minus other financial assistance. The parent borrower is responsible for repayment.

For loans first disbursed from July 1, 2026, through June 30, 2027, the fixed interest rate is 9.07%. Interest begins accruing when the loan is first disbursed. An origination fee is deducted proportionately from each disbursement.

For students who do not qualify for the federal limited exception beginning July 1, 2026, all parents combined may borrow up to $20,000 per academic year and $65,000 in aggregate for each dependent undergraduate student. Parents eligible for the limited exception may continue to borrow up to the cost of attendance minus other financial assistance.

A dependent student whose parent applied for and was unable to obtain a Parent PLUS Loan may be eligible for additional Direct Unsubsidized Loan funds.

 

Repayment and deferment

Repayment begins after the loan is fully disbursed. A borrower may contact the loan servicer to request deferment while the dependent student is enrolled at least half-time and for an additional six months after the student drops below half-time enrollment. Interest accrues during deferment.

Parent PLUS Loan eligibility

  • The borrower must be the student’s biological or adoptive parent, or an eligible stepparent.
  • The parent and dependent student must be U.S. citizens or eligible non-citizens.
  • The dependent student must be enrolled at least half-time in a degree-seeking program at a participating school.
  • The parent must not have an adverse credit history unless additional federal requirements are met.
  • The parent must not be in default on a federal education loan or owe an overpayment on a federal education grant.

How to apply for a Parent PLUS Loan

  1. Ensure the student has completed the FAFSA.
  2. The parent signs in to apply for a Parent PLUS Loan using the parent’s FSA ID and full legal name.
  3. If approved, the parent completes the Parent PLUS Master Promissory Note.
  4. If approval requires an endorser or a successful credit appeal, the parent completes PLUS credit counseling.

 

If the application is denied, the student may submit the parent’s denial notice and a signed request for additional unsubsidized aid to the Office of Student Financial Services.

The Department of Education electronically transmits completed loan documentation to the school. The Office of Student Financial Services accepts the award on behalf of the student and parent after required documentation is received.

 

Graduate PLUS Loan for graduate and professional students

Graduate PLUS Loans are federal loans for eligible graduate and professional students enrolled at least half-time in a degree-seeking program. The loan may help cover the student’s cost of attendance minus other financial assistance. The student borrower is responsible for repayment.

For eligible Graduate PLUS borrowers, loans first disbursed from July 1, 2026, through June 30, 2027, have a fixed interest rate of 9.07%. Interest begins accruing when the loan is first disbursed, and an origination fee is deducted proportionately from each disbursement.

 

Repayment and deferment

Repayment begins after the loan is fully disbursed. A borrower may contact the loan servicer to request deferment while enrolled at least half-time and for an additional six months after dropping below half-time enrollment. Interest accrues during deferment.

Graduate PLUS Loan eligibility

  • Qualify for the federal limited exception that applies beginning July 1, 2026.
  • Be a U.S. citizen or eligible non-citizen.
  • Be enrolled at least half-time in a graduate or professional degree-seeking program at a participating school.
  • Not have an adverse credit history unless additional federal requirements are met.
  • Not be in default on a federal education loan or owe an overpayment on a federal education grant.

How eligible borrowers apply for a Graduate PLUS Loan

  1. Complete the FAFSA.
  2. Sign in to apply for a Graduate PLUS Loan using your FSA ID and full legal name.
  3. Complete the Graduate PLUS Master Promissory Note.
  4. Complete PLUS credit counseling, if required.

The Department of Education electronically transmits completed loan documentation to the school. The Office of Student Financial Services accepts the award on the student’s behalf after required documentation is received.

 

Federal Direct Loan fees

Federal Direct Loan origination fees are deducted proportionately from each loan disbursement.

Federal Direct Loan origination fees for loans first disbursed from October 1, 2020, through September 30, 2027
Loan program Origination fee
Direct Subsidized and Direct Unsubsidized Loans 1.057%
Direct PLUS Loans for parents and eligible graduate or professional borrowers 4.228%

 

Federal Direct Loan interest rates

Interest rates for new Federal Direct Loans are established annually under federal law. Rates are fixed for the life of each loan.

Fixed interest rates for Federal Direct Loans first disbursed from July 1, 2026, through June 30, 2027
Borrower Loan program Fixed interest rate
Undergraduate student Direct Subsidized and Direct Unsubsidized Loans 6.52%
Graduate or professional student Direct Unsubsidized Loan 8.07%
Parent or eligible graduate or professional student Direct PLUS Loan 9.07%

Federal student loans use a simple daily interest formula. The amount of interest that accrues depends on the outstanding principal balance, the number of days since the last payment and the daily interest rate.

 

Federal Direct Loan limits

The school uses FAFSA information to determine the loan type and amount for which a student is eligible. Annual and aggregate limits depend on dependency status, grade level, program and prior borrowing.

Undergraduate annual and aggregate limits

Annual and aggregate Direct Subsidized and Direct Unsubsidized Loan limits for undergraduate students
Grade level or limit Dependent undergraduate Independent undergraduate
First-year annual limit $5,500 total; up to $3,500 subsidized $9,500 total; up to $3,500 subsidized
Second-year annual limit $6,500 total; up to $4,500 subsidized $10,500 total; up to $4,500 subsidized
Third-year and beyond annual limit $7,500 total; up to $5,500 subsidized $12,500 total; up to $5,500 subsidized
Aggregate limit $31,000 total; up to $23,000 subsidized $57,500 total; up to $23,000 subsidized

Independent-student limits also apply to dependent students whose parents are unable to obtain a Parent PLUS Loan.

Graduate and professional annual and aggregate limits

Direct Unsubsidized Loan limits for graduate and professional students effective July 1, 2026
Borrower category Annual limit Aggregate limit
Graduate student $20,500 $100,000
Professional student $50,000 $200,000

A $257,500 lifetime maximum applies across federal student loans, and prior borrowing counts toward applicable aggregate limits. Graduate students who previously borrowed as professional students may have a $200,000 aggregate limit, reduced by professional-student borrowing.

Graduate and professional students in certain health profession programs may qualify for additional Direct Unsubsidized Loan amounts. Contact the Office of Student Financial Services for institution-specific guidance.

 

Federal Student Aid Ombudsman Group

Students should first try to resolve federal student loan issues with their loan servicer. When a neutral third party is needed, the Federal Student Aid Ombudsman Group may help resolve disputes.

Federal Student Aid Ombudsman Group
Phone: 1 (877) 557-2575
Fax: (606) 396-4821
FSA Ombudsman Group
P.O. Box 1843
Monticello, KY 42633

 

Preferred lender list and disclosures

Texas Tech Health El Paso uses ELMSelect’s lender and loan comparison tool to present its preferred lender list.

The list is a research resource and is not exhaustive. Placement results from an annual evaluation of borrower benefits, interest rates and terms, loan servicing, processing efficiency, flexibility, historical certification volume at Texas Tech Health El Paso, and customer service. Lenders appear in random order; no ranking or preference is implied.

The university will not deny or impede a borrower’s lender choice or unnecessarily delay loan certification for a lender outside the preferred list. Vendors were last reviewed on February 20, 2026.

Using ELMSelect

  • Use the View option to review lender and loan information.
  • Review Details for lender and servicer affiliations and loan-specific disclosures.
  • Some listed lenders and products do not process loans through ELMONE.

 

Other loan programs and resources

College Access Loan

The College Access Loan (CAL) Program provides alternative educational loans to eligible Texas students who cannot meet their cost of attendance.

FORWARD Loan Program

The Future Occupations & Reskilling Workforce Advancement to Reach Demand (FORWARD) Loan Program is designed for students who are at least halfway through an eligible degree or certification program that can be completed within two years. Review the official program page for the current list of eligible programs and requirements.

Texas Medical Association Loan Funds

Texas Medical Association Loan Funds offers low-interest loans for qualified medical students. General requirements include:

  • Interest is due one year after disbursement and annually until monthly repayment begins.
  • Principal repayment begins four years after graduation.
  • Equal monthly payments are made for four years; loans may be repaid early without penalty.
  • The note becomes due if the student discontinues medical study.
  • An interview with a Texas Medical Association trustee is required.