Student Loan Programs
Loans must be repaid and require the signing of a promissory note. Several types of loans are available.
William D. Ford Federal Direct Loan Program
The U.S. Department of Education is the lender. Three types of Direct Loans are available for undergraduates who file the FAFSA:
Direct Subsidized Loan
Loans are made to eligible undergraduate students who demonstrate financial need through the FAFSA. Interest rate for 2023-2024 (for loans first disbursed after July 1) is 5.50 percent. The federal government pays the interest during the period of at least half-time enrollment. Repayment begins six months after the student is no longer enrolled at least half time. Several repayment options are available.
Undergraduate students may borrow up to $3,500 as a first-year, $4,500 as a sophomore and $5,500 per year for subsequent years of study to a maximum of $23,000. The federal government will deduct an origination fee of 1.057 percent from the loan proceeds at the time of disbursement.
Direct Unsubsidized Loan
Loans are made to eligible undergraduates, but in this case the student does not have to demonstrate financial need. Interest rate for 2023-2024 (for loans first distributed after July 1) is 5.50 percent. Interest on the Direct Unsubsidized Loan may be paid monthly, quarterly or added to the principal. Repayment begins six months after the student is no longer enrolled at least half time. Several repayment options are available.
Dependent undergraduate students may combine the Direct Subsidized Loan with the Direct Unsubsidized Loan and borrow up to $5,500 as a first-year, $6,500 as a sophomore and $7,500 per year for subsequent years of study to a maximum of $31,000. The federal government will deduct an origination fee of 1.057 percent from the loan proceeds at the time of disbursement.
Independent undergraduate students may combine the Direct Subsidized Loan with the Direct Unsubsidized Loan and borrow up to $9,500 as a first-year, $10,500 as a sophomore and $12,500 per year for subsequent years of study to a maximum of $57,500. The federal government will deduct an origination fee of 1.057 percent from the loan proceeds at the time of disbursement.
Direct PLUS Loan
A parent of an undergraduate student may borrow an amount up to the estimated cost of attendance as defined by federal law minus other forms of financial aid. The parent must be credit approved. For 2023-2024 (loans first disbursed after July 1) the program has a 8.05 percent fixed interest rate and a 4.228 percent origination fee, which will be deducted from the disbursement. Several repayment plans are available.
Nursing Student Loan
TCU is the lender for eligible nursing students who demonstrate financial need through the FAFSA. Funding is limited. Loan limits are $5,460 per year for the first two years, and $8,588 per year for the final two years. Aggregate limit is $26,928. This loan has a fixed interest rate of 5 percent. Repayment begins and interest begins to accrue nine months after the student is no longer enrolled at least half time. Payment is a minimum of $35 per month over a period of up to 10 years.
College Access Loan (CAL)
The lender is the Texas Higher Education Coordinating Board. This loan is for Texas residents who are enrolled at least half time. Financial need is not required, but applicants should submit the FAFSA. A credit-worthy co-signer may be required. Experian Vantage Score of 650 required for approval. Loan amounts are limited each year based on the state’s allocated amount to TCU. Effective August 1, 2022, this program has a 5.35 percent fixed simple-interest rate. Any updates to the interest rate will be posted on hhloans.com. Interest begins accruing on the date of disbursement. Repayment begins six months after the student is no longer enrolled at least half time.
Etta Newby Loan
TCU is the lender. This program requires Texas residency with preference given to Fort Worth high school graduates. A student must demonstrate need based on the need analysis from the FAFSA or TASFA, and applicants must have at least a 2.5 overall GPA. Loan amounts vary, with an $8,000 aggregate limit. There is no interest charged; however, recipients are expected (not required) to contribute to the fund after the debt is repaid. Repayment begins one month after the student graduates or ceases to be at least a half-time student. Funds are limited.