Loans

Borrowing money for school can be a confusing and daunting process for students and their families. Selecting a loan or combination of loans that meet your specific needs is crucial to your financial well-being for many years after you leave school. 

Each loan option has it's own eligibility and repayment terms.  It is important that you select the loan option that best fits your specific needs.  Detailed information for each loan option can be found by clicking on the individual links.     

This guide will provide a brief overview of the Federal Direct Stafford, Federal Direct Parent PLUS and the Federal Direct Graduate/Professional PLUS loan programs, as well as State, Private/Alternative (credit based), and Consolidation loans.

Due to their fixed interest rates, and various repayment options offered by the federal loan programs, SMU recommends the use of federal loans prior to selecting a private/alternative (credit-based) loan.         

Loan

Interest

Eligibility

Terms

How to Apply

FEDERAL

Direct Subsidized

(no credit check required)

6.53% fixed
  • Undergraduate Students Only
  • Need-based
  • Must be enrolled at least half-time status (6 or more credit hours) and in degree seeking program
  • Limits based on grade level in school
  • 1.057% Origination fee deducted at disbursement
  • Repayment deferred, no interest while enrolled at least half-time
  • Interest accrues during 6-month grace period before repayment begins
  • Limited deferment provisions
  • Automatic consideration for loan when you file the FAFSA
  • Sub. loan will appear in your financial aid offer in my.SMU
  • Accept the loan in my.SMU
  • Must sign Master Promissory Note and complete Entrance Counseling to receive funds. Go to StudentAid.gov.

FEDERAL

Direct Unsubsidized

(no credit check required)

6.53% fixed for Under-graduate students


8.08% fixed for Graduate students
  • Undergraduate & Graduate Students
  • Must be enrolled at least half-time (6 or more credit hours) and in degree seeking program
  • Limits based on grade level in school.
  • Interest accrues after disbursement and is capitalized upon repayment. Interest payments may be made while in school to lower overall payments once loan enters repayment.
  • Repayment of principal deferred if enrolled at least ½ time (at least six credit hrs)
  • Other limited deferment provisions
  • 1.057% origination fee deducted at disbursement
  • Automatic consideration for loan when you file the FAFSA
  • Unsub. loan will appear in your financial aid offer in my.SMU
  • Accept the loan in my.SMU
  • Must sign Master Promissory Note and complete Entrance Counseling to receive funds. Go to StudentAid.gov.

 Credit-Based Loan Options

(The following loans require an additional application for credit approval.  See application instructions below)

FEDERAL

Direct Parent PLUS

(Requires additional application for credit approval)

9.08% fixed
  • Not based on financial need
  • Parent is the borrower on behalf of the student
  • May borrow up to cost of attendance (COA) minus other aid
  • Student must be enrolled at least half-time (6 or more credit hours) in degree seeking program.
  • Interest begins to accrue upon loan disbursement.
  • Repayment of principal and interest begins after the loan is fully disbursed.
  • Limited deferment provisions
  • 4.228% origination fee deducted at disbursement
  • STUDENT must submit FAFSA
  • Parent must submit PLUS Loan application for immediate credit decision thru StudentAid.gov
  • Parent must sign Master Promissory Note for school to receive funds.

(PARENT must go to StudentAid.gov to submit application for credit approval. Those who apply with a credit-worthy endorser or negative credit appeal a decision must complete credit counseling)

FEDERAL

Direct Graduate PLUS

(Requires additional application for credit approval)

9.08% fixed
  • Not based on financial need
  • Student can borrow up to cost of attendance (COA) minus other aid
  • Student must be enrolled at least half-time in a degree-seeking program (at least six credit hours per term)
  • Interest begins to accrue upon loan disbursement.
  • Repayment of principal and interest begins after the loan is fully disbursed.
  • Limited deferment provisions
  • 4.228% origination fee deducted at disbursement
  • STUDENT must submit FAFSA
  • After receiving the aid offer, student must  accept the "additional loan eligibility" in my.SMU.
  • Student must submit GRADPLUS Loan application for immediate credit decision thru StudentAid.gov
  • Student must sign Master Promissory Note for school to receive funds.

(Student must go to StudentAid.gov to submit application for credit approval. Those who apply with a credit-worthy endorser or receive a negative credit appeal decision must complete credit counseling)
STATE of TEXAS

College Access Loan – CAL

(Requires additional application for credit approval)

6.30%
  • Undergraduate & Graduate Students
  • Verified Texas Resident
  • Must be enrolled at least ½ time enrollment in degree seeking program
  • May need a credit-worthy co-signer
  • No origination fee
  • Loans have a six-month grace period from the date a borrower ceases to be enrolled at least half-time 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.


Private/Alternative 

Various Private-Alternative Loans

(Requires additional application for credit approval).

Varies
  • Based on credit verification
  • Not based on financial need
  • Other criteria varies widely, however most require at least ½ time enrollment and meeting Satisfactory Academic Progress (SAP) requirements
  • May need a credit-verified co-signer
  • Varies by lender

For more Details on Loan options follow the links below:

For information on the percentage of SMU students who borrow, the Cohort Default Rate (CDR) as calculated by the U.S. Dept. of Education, and how the CDR compares with other schools, please go to the U.S. Dept. of Education's College Scorecard website.