Student Education Loans
Student loans are a reality for many students completing graduate and professional education. While you may not enjoy the thought of having them, education loans can be an important investment in your future.
- Federal Direct Unsubsidized Loan
To apply for a Direct Loan, students must submit the Free Application for Federal Student Aid (FAFSA). The unsubsidized loan is not based on financial need and is available to all eligible students, regardless of income. Interest accrues from the date of the first disbursement. Students who are first-time borrowers must complete an online Entrance Counseling and an Unsubsidized Loan Master Promissory Note (MPN) at the Federal Student Aid website.
- Lender: U.S. Department of Education
- Interest Rate: Fixed at 7.94% for loans disbursed July 1, 2025 - June 30, 2026; Fixed at 8.08% for loans disbursed July 1, 2024 – June 30, 2025
- Origination Fee: 1.057% (e.g., if $2,000 is borrowed, $1,979 will be disbursed to the school)
- Repayment: Begins six months after graduation, withdrawal, or less than half-time enrollment. Standard repayment is 10 years following grace period, though other repayment options may be available.
For more information, please visit the Federal Student Aid website.
- Federal Direct Graduate PLUS Loan
Federal Graduate PLUS (Grad PLUS) loans are eliminated for new borrowers beginning July 1, 2026.
Legacy Provision
If you have previously borrowed a federal student loan in your current academic program, you may continue receiving Grad PLUS funding until you complete your current program, or for up to three academic years, whichever comes first.
Please note that changes to your academic path, such as a separation from the program, leave of absence, transfer to another institution, switching majors or degree levels, or other enrollment adjustments, may affect your eligibility for these legacy provisions.
To apply for a Direct Loan, students must submit the Free Application for Federal Student Aid (FAFSA). Unlike other federal student loans, there is a credit check requirement – the student cannot have an adverse credit history. Interest accrues from the date of the first disbursement. Students who are first-time borrowers must complete an online Entrance Counseling and a Graduate PLUS Loan Master Promissory Note (MPN) at the Federal Student Aid website.
- Lender: U.S. Department of Education
- Interest Rate: Fixed at 8.94% for loans disbursed July 1, 2025 - June 30, 2026; Fixed at 9.08% for loans disbursed July 1, 2024 – June 30, 2025
- Origination Fee: 4.228% (e.g., if $2,000 is borrowed, $1,916 will be disbursed to the school)
- Repayment: Begins six months after graduation, withdrawal, or less than half-time enrollment. Standard repayment is 10 years following grace period, though other repayment options may be available.
For more information, please visit Federal Student Aid website.
- Understanding Private Student Loans
Private loans are credit-based loans from banks, credit unions, non-profits and other lenders used to cover educational cost up to a student's cost of attendance. Students may choose to use private loans to cover all of their expenses, but most students use a combination of federal and private loans. Each lender has its own application, and loan terms are often customizable, allowing borrowers to choose length of repayment, payment structure, and type of interest rate. UT Southwestern or the Office of Student Financial Aid cannot guarantee the approval of a private loan.
Private education loans are borrowed funds that must be repaid. These loans are credit-based, and each lender has its own credit criteria. Awarded funding can’t exceed the student’s cost of attendance, but can help to close the gap between federal loan programs or other financial aid and college costs.
UT Southwestern strongly recommends that all students exhaust all federal loan options available to you through FAFSA before considering a private student loan.
If you have questions about FAFSA, federal or private loans, or any other matter, please contact our team via financialaid@utsouthwestern.edu. We are more than happy to walk you through the process of applying for both federal and private education loans.
- Federal vs. Private Loans
Federal Direct Unsubsidized loans are available to any eligible borrower through the US Department of Education and are applied for annually through FAFSA. Students who borrowed a federal loan for their current program prior to July 1, 2026 may also qualify to borrow a Federal Direct Grad PLUS loan (credit check required). A student can choose to borrow a federal loan, a private loan, or both.
- Federal loans offer standard and income-driven repayment options and have an automatic six-month deferment period after a student ceases to be enrolled half-time. Private education loans may also offer a grace period, but the terms and length vary by lender. The terms available to you through a lender may also vary by program.
- Federal student loans offer a single fixed interest rate on all loans that disburse between July 1st and June 30th of a given academic year; that interest rate changes annually and is set by the US Department of Education. Private loans offer interest rates that are either fixed for the life of the loan, or are variable depending on the market conditions (meaning your payment can rise or fall). The rate you receive is dependent on your credit; most students will receive a more favorable interest rate if they apply with a co-signer.
- Credit and Co-Signer Information
The ability to get a private loan, as well as the loan terms, are heavily dependent on a borrower’s credit history. Students who do not have an established credit history will likely need a co-signer to be approved, and even students who have credit history often benefit from a co-signer to secure more advantageous rates and loan terms. Co-signers are often a student’s parent or other family member but can be any person who wishes to assist with obtaining your educational financing. Most lenders offer a “co-signer release” after establishing a successful payment history. That means that after the borrower makes a certain number of payments, the co-signer can be removed from the loan. You can receive a free credit report through AnnualCreditReport.com, the only website authorized by the federal government to issue free, annual credit reports.
- FastChoice Lender Selection & Comparison Tool
UT Southwestern’s Office of Student Financial Aid provides FastChoice to help students explore private lenders and loan options.
- UT Southwestern is not responsible for the information presented on either FastChoice or the lender websites.
- UT Southwestern does not endorse any lender or its products, and we have no affiliation with any lending organization.
- UT Southwestern’s Office of Student Financial Aid does not receive any incentive or benefit from any lender in exchange for displaying lender and loan options.
- Students are not limited to the lenders listed in FastChoice. Students may select any lender they wish, and all loan applications will be processed without regard to the lender choice. If you prefer a lender that is not shown, feel free to contact them directly to learn more about their loan options.
- Remember, you must reapply for private loans each academic year if you need additional funding.
- UT Southwestern and the Office of Student Financial Aid cannot guarantee approval of private loan applications.
- Access to private education loans is strongly dependent on your creditworthiness. We encourage you to check your credit report early and often.
- Applying for a Private Loan at UT Southwestern
Determine the amount you will need for the entire academic year and apply for the total amount. If you are attending 3 semesters (summer, fall, spring), apply for the amount you will need for the year and funds will disburse in 3 equal portions for each semester. If you are attending fall and spring, your disbursements will be made in two equal portions. Funds received from your lender to UT Southwestern by the published disbursement date for each semester will be released as scheduled. Funds received after the scheduled disbursement date for your program will be disbursed as soon as possible.
Be sure you’ve explored the federal loan options available to you before deciding to use a private loan. Selecting a private loan is an important decision, so please reach out to us for assistance if you need help. When you’re ready to apply, follow the steps below.
- Step 1) Research your loan options by starting with FastChoice. You do not have to utilize one of these options listed there, but our team has vetted these lenders specifically for use at our institution to ensure they meet the high standards expected at UT Southwestern.
- Step 2) Apply for a private loan through the FastChoice platform or through your lender’s website directly. You are required to complete a self-certification form, which should be provided by your lender (but can also be accessed online). Information you need for the cost of attendance section of the self-certification form is on our cost of attendance website.
- Step 3) Once approved, your application will be sent to UTSW to certify. If we can’t certify your loan or we have questions, we will reach out to you.
- Step 4) After we have certified your loan, you will be provided with an Approval Disclosure Statement by your lender. This contains the borrower-specific terms of the loan and the amount that has been conditionally approved. Review this carefully before accepting!
- Step 5) After the conditional disclosure terms are accepted, you will receive a Final Disclosure Statement. This confirms the final interest rate, fees, and repayment terms, as well as information regarding the right-to-cancel period.
- Step 6) Once the right-to-cancel period has ended (minimum of 3 days, depending on the lender), your funds will be sent to UT Southwestern and will be disbursed as scheduled.