Subsidized and unsubsidized Texas Stafford loans are available to Texas undergraduate and graduate students. To find out if your Texas college, university or school qualifies for a Stafford Loan, you can check the list of eligible schools at the Stafford Loan's website. Stafford Loans are not based upon credit, and students must pay the loans back six months after they graduate, leave the school or attend less than half-time (less than six hours a week). Subsidized loans are preferred loans because the federal government pays the interest on subsidized loans while you are in school, and they offer low interest. They are based upon financial need so you must complete a government FASA application first, and meet all FASA eligibility requirements. You can apply online at the FASA website or at the Student Financial Aid website. Unsubsidized loans are loans that are guaranteed by the government that are not based upon financial needs. The interest on the unsubsidized loan starts accruing from the time you receive the loan. You can apply for an unsubsidized Stafford Loan and find out more information about Stafford Loans, interest rates and loan amounts at the Stafford Loans website.
Private student loans are offered by banks and other financial lending institutions. To find out which lending institutions offer private loans for your school, go to the Student Private Loan website and type in "Texas" and the name of your school. A list of lenders will come up, and you can simply click the link and apply online at the lender's website, call them or visit the lender's local branch office. Loan programs vary, so speak to the loan officer at the lending institution before applying. Disbursement of loan funds should be arranged between your financial institution and your school.
Perkins Loans are funded by the federal government and given only to Texas students who demonstrate a severe financial need. The government pays the interest on the loan until the student repays the loan. Repayment is required nine months after the student graduates, drops out or take less than six hours of class time a week (below half-time status). In order to apply for a Perkins loan, you must first apply for a federal FASA at the FASA website or the Student Financial Aid website. Students will need to complete a master promissory note, which can be obtained on their school website once they have been approved by FASA and their school. The school administers the funds. For more information, talk to your school financial counselor.
The Texas BOT loan program is a program, administered through the State of Texas Higher Education Coordinating Board, that is available to Texas full-time students who are enrolled in a Texas undergraduate program or approved certificate program. Check with your school financial aid counselor to determine if you are eligible and to find out about other enrollment requirements. Students who receive an undergraduate degree or certificate from eligible Texas schools and meet certain other requirements may have their loans forgiven. To learn more about the BOT loan program, visit the Texas Higher Education Coordinating Board BOT website.