Loans

-Back to Table of Contents -

SMU and other investment partners offer your family several loan options featuring low-interest rates and long-term payments. Some loans are awarded based on documented financial need, others on creditworthiness and income. All loans must be repaid; they are not considered gift aid.

FEDERAL DIRECT SUBSIDIZED LOAN

Funding Partner: U.S Federal Government
Eligibility: Awarded based on financial need shown 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 6.53 percent for Undergraduate loans disbursed on or after July 1, 2024, and before July 1, 2025. 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 6.53 percent annually. Graduate students may borrow $20,500 annually, at an interest rate of 8.08 percent for loans first disbursed on or after July 1, 2024, and before July 1, 2025.

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 9.08 percent for loans first disbursed on or after July 1, 2024, and before July 1, 2025.
Repayment: Begins immediately after final disbursement of the loan for the year, usually March; parent is the borrower; payment may be deferred up to six months after student graduation or if the student falls below half-time enrollment status (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 9.08 percent for loans first disbursed on or after July 1, 2024, and before July 1, 2025.
Repayment: Begins immediately but can be deferred with half-time enrollment.

COLLEGE ACCESS LOAN (www.hhloans.com)

Funding Partner: Texas Higher Education Coordinating Board.
Eligibility: Verified Texas resident; creditworthy co-signer needed.
Amount: Up to cost of attendance minus any other financial aid.
Interest Rate: Fixed 5.85 percent for loans certified on or after July 1, 2023. 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.
Postponements of loan repayment and income-sensitive or graduated repayment schedules are available.