SFA participates exclusively in the William D. Ford Federal Direct Loan Program, in which borrowers obtain loan funds directly from the U.S. Department of Education. For more information on Direct Loans go to www.StudentLoans.gov.
Student Loans are an excellent form of financial aid to assist with educational expenses. While some loans have forgiveness provisions (Texas B-On-Time Loan for example), loans are a debt and MUST BE REPAID. Please borrow wisely.
150 Percent Rule for Federal Direct Subsidized Loans (also known as SULA)
Effective July 1, 2013, federal regulations added a provision to the Direct Loan requirements that limits a first-time borrower's eligibility for Direct Subsidized Loans to a period not to exceed 150% of the length of the borrower's educational program. Under certain conditions, the provision also causes first-time borrowers who have exceeded the 150% limit to lose the interest subsidy on their Direct Subsidized Loans. For more information regarding Direct Subsidized Loan timeframes, please visit http://studentaid.ed.gov/types/loans/subsidized-unsubsidized#is-there-a-time-limit.
FY 2014 Sequestration Changes to Title IV Student Aid Programs
The loan fees on Direct Loans where the first disbursement was or will be made on or after December 1, 2013 and before October 1, 2014 will continue to be 1.072% for Direct Subsidized and Unsubsidized Loans and 4.288% for Direct PLUS Loans. As of October 1, 2014, the sequester increases the origination fees to 1.703% for Direct Subsidized and Unsubsidized Loans and 4.292% for Direct PLUS Loans.
Federal Direct Subsidized Loan - A need based loan where the federal government pays the interest while the student is in school and during the grace period before repayment begins. You must be enrolled at least 6 hours per semester to receive these funds.
Federal Direct Unsubsidized Loan - Non-need based loan. You, the borrower, are responsible for the interest on the loans as soon as the funds are disbursed. The interest is accruing while the student is in school. You must be enrolled at least 6 hours per semester to receive these funds.
Federal Perkins Loan - A low-interest loan offered to both undergraduate and graduate students with exceptional financial need. This loan also has cancellation options based on after-graduation employment. Award amounts for eligible undergraduate students range from $300 - $4000 per year. Award amounts for eligible graduate students range from $300 - $6000 per year.
Federal Parent PLUS Loan - Available to parents of dependent undergraduate students enrolled at least 6 hours each semester. Your parents' credit history is checked to determine eligibility for this loan. Parents may borrow up to the student's Cost of Attendance.
Federal Graduate PLUS Loan - Available to graduate students who are enrolled at least 6 hours each semester.
Alternative Loans - Loans that are offered by banks or lending institutions to assist students or parents in bridging the gap between college costs and traditional funding sources. These loans are private supplemental loans, and are not guaranteed by the federal government. Terms and conditions of these loans can vary according to specific lender.
B-on-Time Loan - A state loan that provides eligible Texas students a no-interest loan to attend colleges and universities in Texas. Certain eligibility requirements must be met. Priority will be given to students who are eligible for Texas Grant, but are not receiving a Texas Grant due to a shortage of funding in that program.
College Access Loan (CAL) - A non-need based state loan provided by the Texas Higher Education Coordinating Board. Students may apply for this loan if they are: a Texas resident, enrolled at least half time (6 hours each term), meet all financial aid requirements, and can secure this loan based on borrower’s credit or a credit worthy co-signer. This loan is NOT automatically offered by the SFA Financial Aid office and a separate application is required. Students should exhaust all other forms of eligibility for grants and Federal Direct loans before applying for this loan. For additional information and to apply for the College Access Loan please visit www.hhloans.com.
Emergency Short-Term Loans for Tuition and Fees - Stephen F Austin State University sets aside funds each semester for student who have a temporary need for money to help with tuition and fees. Please make sure that if you need to add classes that you do so before applying for the Short-Term Loan. Short-Term loans are billed through the student's account for half tuition & fees. A service fee of 1.25% will be charged to your student account. Any payments crediting your student account after the Short-term loan is disbursed will be used to repay this loan only after all other student account charges have been paid. For more information on qualifying and applying for short-term loans, click here.
Book Loans - Stephen F. Austin State University sets aside funds each semester for students who have a temporary need for money to take care of expenses (i.e. tuition/fees and books). Book Loans are only available during registration. The amounts of the Book Loans are $500 Fall and Spring and $600 for the Summer. A service fee of 1.25% will be charged to your student account. Any payments crediting your student account after the Book Loan is disbursed will be used to repay this loan only after all other student account charges have been paid. For more information on qualifying and applying for book loans, click here.