Loans

What is a student loan?

A student loan is borrowed money that must be repaid with interest.  Loans can be used by the student to supplement educational expenses that were not covered by institutional grants, or to assist students who are not eligible for grants. When a student is awarded a loan they are not required to accept it. Students also have an option of reducing the loans that they were offered. In order to be eligible for loans, the student must be enrolled at least half-time. Students will need to contact the financial aid office and lender if they graduate, withdraw, or drop below half-time. A six month grace period begins once the student falls into any of these categories before the first payment is required.

Direct Loans are low-interest loans that are lent to the student from the U.S. Department of Education rather than from a bank or other financial institution. As with other federal student aid, Direct Loans are applied for by filling out the FAFSA. Law students are awarded unsubsidized loans.

One Big Beautiful Bill Act
(OBBA):
What You Need to Know & FAQs

On July 4, 2025, the One Big Beautiful Bill Act (OBBA) was signed into law, introducing significant changes to federal student aid programs. Beginning July 1, 2026, several important changes will reshape how students and families pay for higher education. We are actively reviewing the legislation and will continue to share updates as additional guidance becomes available from the U.S. Department of Education and other relevant authorities.

Below is a summary of what we know so far, what these changes may mean for you, and the steps you can take to begin preparing. The information on this page is provided to help students and families navigate and prepare for the changes to federal student aid programs. We are still awaiting official guidance, and this information is subject to change at any time.

Professional Students 

New loan borrowers as of July 1, 2026 

Professional borrowers who first borrow federal graduate-level loans on or after July 1, 2026, for a professional academic program will be considered NEW borrowers. These borrowers will be subject to the newly established loan limits and rules that apply to enrollment periods on or after that date. 

This includes students who: 

• Begin a new professional program on or after July 1, 2026;
• Enroll in a professional program for the first time; or
• Have previously completed a graduate or professional program but are now starting a different program (e.g., finishing a master’s degree and then enrolling in law school).
• Students who take a leave of absence or take extra time to complete their degree will be considered a New Borrower.

Current borrowers who borrowed a loan before July 1, 2026: 

CURRENT (grandfathered) professional borrowers include those who borrowed federal graduate-level loans, including Direct Unsubsidized or Graduate PLUS loans, for a term that began before July 1, 2026, and remains enrolled in the same professional program at the same institution. Under the proposed regulations, eligible professional students may continue to borrow under the current loan rules for a limited period based on their “expected time to credential.” 

The proposed language indicates eligibility will be determined using an “expected time to completion,” as July 1, 2026, which would generally be the shorter of: 

• Up to three academic years.
• The remaining length of your program at the time eligibility is determined. 

Federal Direct Unsubsidized Loans for Professional Students: 

Updated Annual and Lifetime Limits for Professional Student Unsubsidized Loans ( New Borrowers): 

• Up to $50,000 per year
• $200,000 lifetime professional borrowing limit (excluding undergraduate loans)
• Annual and lifetime limits for grandfathered students remain at previous levels.

Federal Graduate PLUS Loans: 

• Federal Graduate PLUS Loans will be phased out beginning July 1, 2026.
• After this date, Graduate PLUS Loans will not be available for new borrowers.

Updated Lifetime Limits for All Federal Loan Programs (New Borrowers): 

• $257,500 lifetime aggregate borrowing limit on all federal student loans (excluding any loan amounts for Federal Parent PLUS Loans, Graduate PLUS Loans).
• $138,500 lifetime aggregate borrowing limit will still apply to grandfathered borrowers.

Changes to Loan Eligibility Based on Enrollment (All Borrowers):

Direct Loans are awarded based on your enrollment status. If you are enrolled in less than full-time coursework, your Direct Loan eligibility will be reduced proportionally based on the number of credits you are enrolled in for the term. This adjustment is required by federal regulations and applies to all Direct Loan borrowers.

Direct Loan Program

The University of North Texas participates in the William D. Ford Federal Direct Loan program which allows you to borrow loan funds directly from the U.S. Department of Education.   This program will give you and your parents a more stable, streamlined, and predictable borrowing experience.  Read the FAQ's about the Direct Loan program.

Federal Loans

• Direct Stafford Loan (Unsubsidized) – This loan is not based on need. Interest on this loan is charged during all periods, even during the time a student is in school and during grace and deferment periods.
• Direct Loan Grad (PLUS) – This is an unsubsidized loan for the student. Plus loans assist in the educational expenses up to the cost of attendance minus all other financial assistance that is awarded to the student. Interest on this loan is charged during all periods. Payments can be deferred for this loan.

Private/ Alternative

• Private/Alternative Loan Information – Alternative or private loans are initiated by the borrower through a private lender. Interest rates on these loans can vary depending on the lender and the credit history of the borrower. Repayment terms can also vary depending on the lender. Once the credit is approved and the promissory note is received by the lender they will send a certification request to UNT Dallas. Alternative loan funds will be released to the students account only if all loan eligibility requirements are met at the time of disbursement. This loan cannot be consolidated with Direct Loans.

Evaluating the Option of Private Loan Financing

If you are considering borrowing through a private lender, we encourage you to:

• Be sure you have exhausted all other possible sources of financial aid.
• Consider all ways to reduce your expenses before you decide how much to borrow.  
• Borrow only what you absolutely need.