2018-2019 Graduate Catalog [ARCHIVED CATALOG]
Loans
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SMU and other investment partners offer your family several loan options featuring low-interest rates and long-term payments. Some loans are awarded on the basis of documented financial need, others on the basis of creditworthiness and income. All loans must be repaid; they are not gift aid.
SMU FAMILY ASSISTANCE LOAN
Made possible in part by the generous gift of the John and Sue Patrick Foundation Loan Fund, SMU’s innovative loan program offers creditworthy families with documented income the opportunity to stabilize and control college costs. It features a low-interest rate with a fixed monthly payment and repayment of two years for every year that you may borrow, up to eight years. Parents and students must co-sign the loan.
The University will lend up to $10,000 per term with a maximum credit line of $80,000. If families choose to reduce their loan request at any time, SMU will reduce the number of monthly payments accordingly. Interest charges accrue only on advances as they are made and borrowers may prepay any part of the loan at any time without penalty. Refer to the following table for examples of monthly payments.
SMU FAMILY ASSISTANCE LOAN REPAYMENT SCHEDULE
Borrowed per Year |
Total Borrowed
(8 terms) |
Total Interest |
Total Paid |
96 Monthly
Payments* |
| $20,000 |
$80,000 |
$13,498.60 |
$93,498.60 |
$973.95 |
| $19,000 |
$76,000 |
$12,823.75 |
$88,823.75 |
$925.25 |
| $18,000 |
$72,000 |
$12,148.58 |
$84,148.58 |
$876.56 |
| $17,000 |
$68,000 |
$11,473.73 |
$79,473.73 |
$827.86 |
| $16,000 |
$64,000 |
$10,798.88 |
$74,798.88 |
$779.16 |
| $15,000 |
$60,000 |
$10,124.00 |
$70,124.00 |
$730.46 |
| $14,000 |
$56,000 |
$9,448.87 |
$65,448.87 |
$681.77 |
| $13,000 |
$52,000 |
$8,774.02 |
$60,774.02 |
$633.07 |
| $12,000 |
$48,000 |
$8,099.20 |
$56,099.20 |
$584.37 |
| $11,000 |
$44,000 |
$7,424.30 |
$51,424.30 |
$535.67 |
| $10,000 |
$40,000 |
$6,749.11 |
$46,749.11 |
$486.98 |
| $9,000 |
$36,000 |
$6,074.30 |
$42,074.30 |
$438.28 |
| $8,000 |
$32,000 |
$5,399.51 |
$37,399.51 |
$389.58 |
| $7,000 |
$28,000 |
$4,724.60 |
$32,724.60 |
$340.88 |
| $6,000 |
$24,000 |
$4,049.37 |
$28,049.37 |
$292.19 |
| $5,000 |
$20,000 |
$3,374.58 |
$23,374.58 |
$243.49 |
| $4,000 |
$16,000 |
$2,699.70 |
$18,699.70 |
$194.79 |
*All loans are 95 equal payments with a slightly reduced amount for the 96th payment.
FEDERAL DIRECT SUBSIDIZED LOAN
- Funding Partner: U.S Federal Government
- Eligibility: Awarded on the basis of financial need demonstrated by the Free Application for Federal Student Aid (FAFSA).
- Amount: Up to $3,500 for the first year; $4,500 for the second; $5,500 for subsequent junior and senior years.
- Interest Rate: Fixed 5.05 percent for loans disbursed on or after July 1, 2018 and before July 1, 2019. Interest accruals are subsidized by the Federal government until the loan enters repayment.
- Repayment: Begins six months after student ceases attending at least half-time (6 hours). Student is the borrower. Interest begins accruing the month after graduation.
FEDERAL DIRECT UNSUBSIDIZED LOAN
- Similar to the Federal Direct Subsidized Loan, with two exceptions: Demonstrated financial need (as determined by the FAFSA) is not required, and interest accruals, which begin at the point of disbursement, are the responsibility of the borrower. Undergraduate students may borrow $2,000 annually, at an interest rate of 4.45 percent annually. Graduate students may borrow $20,500 annually, at an interest rate of 6.60 percent for loans first disbursed on or after July 1, 2018 and before July 1, 2019.
FEDERAL DIRECT PARENT PLUS LOAN
- Funding Partner: U.S. Federal Government
- Eligibility: Borrower creditworthiness; FAFSA record on file with the school.
- Amount: Cost of attendance minus other financial aid.
- Interest Rate: Fixed 7.60 percent for loans first disbursed on or after July 1, 2018 and before July 1, 2019.
- Repayment: Begins immediately after final disbursement of the loan for the year, usually March; parent is the borrower; payment may be deferred until six months after graduation of student or student ceases attending at least half-time (6 hours).
FEDERAL DIRECT GRAD PLUS LOAN
- Funding Partner: U.S Federal Government
- Eligibility: Borrower (student) creditworthiness, FAFSA record on file with the school.
- Amount: Cost of attendance minus other financial aid.
- Interest Rate: Fixed 7.60 percent for loans first disbursed on or after July 1, 2018 and before July 1, 2019.
- Repayment: Begins immediately, but can be deferred with half-time enrollment.
- Funding Partner: Texas Higher Education Coordinating Board.
- Eligibility: Verified Texas resident; creditworthy co-signer required.
- Amount: Up to cost of attendance minus any other financial aid.
- Interest Rate: Fixed 5.30 percent for loans certified on or after May 14, 2018. Interest is not capitalized.
- Repayment: Loans have a six-month grace period from the date a borrower ceases to be continuously enrolled as at least a half-time student at an eligible institution. Principal balances under $30,000 have up to a ten-year repayment period with minimum monthly payments of $50. Principal balances of $30,000 or more have a repayment period up to 20 years. The loan will not be sold to another lender.
- Postponements of loan repayment and income-sensitive or graduated repayment schedules are available.
METHODIST STUDENT LOAN FUND (gbhem.org)
- Funding Partner: United Methodist Church (UMC) Board of Higher Education and Ministry.
- Eligibility: Students who are active UMC members.
- Amount: Up to $5,000 per calendar year, maximum total of $20,000.
- Interest Rate: From fixed 3.75 percent to fixed 5 percent, based on option chosen.
- Repayment: Varies, depending on interest option chosen.
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