Federal Direct Student Loans
- Subsidized loans are awarded on the basis of financial need. Interest is deferred prior to repayment beginning and during authorized periods of deferment.
- Unsubsidized loans are not awarded on the basis of need. Interest is charged from the date the loan is disbursed until the loan is repaid.
Federal Direct PLUS Loans
- PLUS loans enable parents with good credit histories to borrow funds for educational expenses for each dependent child. PLUS loan applications are available upon request from the Financial Aid Office.
- Freshmen can receive up to $3500 in subsidized loans per academic year, or $1750 per semester.
- Sophomores can receive up to $4500 in subsidized loans per academic year, or $2250 per semester. (Students must have earned 32 hours to be considered a sophomore)
- Dependent students may qualify for an additional $2000 in unsubsidized loans per academic year, or $1000 per semester.
- Independent students may qualify for an additional $6000 in unsubsidized loans per academic year, or $3000 per semester.
Loan Application Process
- Complete the Free Application for Federal Student Aid (FAFSA) at www.fafsa.gov.
- Once the FAFSA is received and students meet all SAP and Financial Aid requirements, a Loan Offer Letter is mailed to the student.
- Students who wish to accept the loan offer will mark yes and return to financial aid. Students will have the option to alter the loan offer listed on the second page of the offer letter.
- Complete Entrance Counseling at www.studentloans.gov.
- Sign promissory note electronically at www.studentloans.gov with your FSA user ID and password.
- Upon receipt of the loan acceptance, the loan is certified. Award letters will be mailed out to notify students when their loan has been processed.
- Balances due to the student will be disbursed either on a pre-paid debit card, by check or direct deposit. Students should check their Southern Union email for information concerning the 3 options available to receive their financial aid disbursements. Click here for more information.
LOAN FUNDS ARE NOT RECEIVED BY THE SCHOOL AND DISBURSED UNTIL AFTER 30 DAYS INTO THE TERM. AFTER THE FIRST DISBURSEMENT, LOANS ARE DISBURSED EVERY TWO WEEKS. ONE TERM ONLY LOANS WILL BE DISBURSED IN TWO DISBURSEMENTS; ONE AFTER 30 DAYS INTO THE TERM AND THE SECOND AT MID-TERM.
For more information about loans, deadline dates and disbursements please refer to the back page of the Loan Offer Letter. Students can also access their loan account information at www.studentloans.gov.
NOTE: Students will be placed on hold for Loan Exit Counseling when their loan is processed. Exit Counseling should be completed ONLY when the student is no longer eligible for loans, drops below 6 credit hours, transfers to another school or graduates from Southern Union.