Types of Financial Aid: Loans

What's the difference in a subsidized and unsubsidized loan?

A subsidized loan is awarded on the basis of financial need.  Interest will not be charged on this loan while the student is enrolled in school or during authorized periods of deferment. The federal government "subsidizes" the interest during these periods.

An unsubsidized loan is not awarded on the basis of need. Interest is charged from the time the loan is disbursed until it is paid in full.  Interest that accrues (accumulates) while the student is in school or during other periods of nonpayment will be capitalized - that is, the interest will be added to the principal amount of the loan and additional interest will be based on that higher amount.

How do I get a Direct loan?

A regular student enrolled in an eligible program at least half-time may receive a Direct loan. Complete the FAFSA as you would for other federal student aid.

Once a Direct loan has been awarded the student should complete an online Master Promissory Note (MPN) and Entrance Counseling.  The MPN is a binding legal document.  By signing it you are agreeing to repay your loan under the terms specified.  Both the MPN and Entrance Counseling should can be completed at studentaid.gov.

How much can I borrow?

Combined Subsidized & Unsubsidized Annual Loan Limits

Dependent students

• Freshman (<30 hrs) $5,500
• Sophomore (30-59 hrs) $6,500    
• Junior/Senior (60+ hrs) $7,500   

Independent students

• Freshman (<30 hrs) $9,500
• Sophomore (30-59 hrs) $10,500
• Junior/Senior (60+ hrs) $12,500

Why is the amount on my bill not the same as the amount awarded?

Direct loans are subject to origination fees.  Origination fees are charged by the lender.  These fees may range from 1% to 3%.  For example, if you borrow $3,500 ($1,750 per semester), the lender may hold out $36 in origination fees for the year ($18 per semester).  $1,732 per semester would be applied to the bill instead of the award amount of $1,750.  You are required to repay the full award amount.

Important Change to Federal Student Loans: Amounts Are Now Based on Your Enrollment Level

Effective for the 2026–27 academic year (terms beginning July 1, 2026 and later)

What's Changing

A new federal law (the One Big Beautiful Bill Act, sometimes called OBBBA or OB3) changes how much you can borrow in federal Direct Loans if you are not enrolled full-time. Starting with the 2026–27 academic year, your loan amount will be reduced, or “prorated,” to match your actual enrollment level each semester.

In the past, many students could receive a full annual loan amount as long as they met at least half-time enrollment. That is no longer the case. Under the new rule, the less-than-full-time loan amount is tied directly to how many credit hours you are taking.

Who This Affects

This applies to you if, for any semester in the 2026–27 award year or later, you are enrolled less than full-time (fewer than 12 credit hours as an undergraduate) and are borrowing a Federal Direct Subsidized or Unsubsidized Loan.  This applies to Undergraduate and Graduate students.

If you are enrolled full-time every semester, this change does not reduce your loan amount.

How Proration Works

Your loan eligibility is based on your enrollment level for each semester, not an average across the year. The chart below shows an example using a full-time annual maximum of $3,500 (actual amounts vary by grade level; this is for illustration only).

Enrollment Level	Credit Hours*	% of Full-Time Loan Amount	Example (Full-Time Annual Max: $3,500)
Full-time	12+ credits	100%	$3,500
3/4-time	9–11 credits	75%	$2,625
Half-time	6–8 credits	50%	$1,750
Less than half-time	Under 6 credits	Not eligible	$0

*Credit hour ranges reflect typical PJC enrollment categories; your enrollment level is confirmed at census each semester.

What Stays the Same

• You must still be enrolled at least half-time to receive any federal Direct Loan.
• Subsidized and Unsubsidized Direct Loans are both still available to eligible undergraduates.
• Your total annual and aggregate (lifetime) loan limits are unchanged.
• You can still decline, reduce, or cancel loan funds at any time.

If You Borrowed Before July 1, 2026

A limited transition provision may allow some students who already had a Direct Loan disbursed before July 1, 2026 to continue under the prior rules for up to three more academic years, as long as you remain continuously enrolled in the same program at ETBU. Final federal guidance on this provision is still being implemented, so your Financial Aid award may be adjusted once your enrollment is confirmed each semester.

What You Should Do

• Decide your enrollment plans for each semester as early as possible, since your loan amount is set by your actual credit hours.
• Watch for updated award notifications in your student portal after each semester's census date.
• If dropping below full-time will affect your loan amount, contact our office before you make changes to your schedule.
• Ask us about other resources, including grants and scholarships, if a prorated loan amount will not fully cover your costs.

Questions?

Federal guidance on this provision is still being finalized by the U.S. Department of Education, and amounts may be updated as final rules are released. If you have questions about how this affects your specific award, please contact the ETBU Office of Financial Aid.

 

 

The Parent PLUS Loan is a federal loan that the parents of dependent undergraduate students can use to help pay education expenses. 

Parent Borrowers may complete the application for a PLUS Loan here. 

Notes:

• Please sign in using the parent's FSA ID.
• Please do not complete the PLUS Loan application prior to June 1 of the academic year for which you are applying. 

• A credit check will be performed during the application process and is only valid for 90 days.

• The institution is required to verify the borrower is the parent of the student and may request additional documentation to verify.

Approved PLUS borrowers

The U.S. Department of Education will notify us of any approved PLUS loans within 24 hours. Parent must complete the Master Promissory Note at studentaid.gov. The Master Promissory Note must be in the parent's name. The PLUS must also be accepted online at Tiger Connect. PLUS loans, like Direct Loans, are subject to origination fees.

Denied PLUS borrowers

The U.S. Department of Education will notify us of any denied PLUS loans within 24 hours. If the parent is denied the PLUS loan, the student is then eligible for additional Direct Unsubsidized Loan funds. The student must accept the additional unsubsidized loan on Tiger Connect.

Endorsed PLUS borrowers

If the parent is denied but chooses to get an approved endorser then parent will need to complete the Master Promissory Note (MPN) and the PLUS Credit Counseling at studentaid.gov.

For more information on the PLUS Loan, please click here.

The College Access Loan provides loan funding to students from Texas. Students do not have to demonstrate financial need to receive CAL, but the cost of attendance is considered in determining loan limits.

To be eligible for CAL a student must:

• Be classified by the institution as a Texas resident, Texas Residency must be on file with ETBU
• Be registered with Selective Service
• Be enrolled at least half-time in a course of study leading to an associate's, bachelor's, graduate, or higher degree; or an approved alternative educator certification program
• Meet the satisfactory academic progress requirements
• Receive a favorable credit evaluation or provide a cosigner who has good credit standing and meets other requirements

For more information and to apply for a CAL loan click here.

**If a student is eligible but chooses not to file a FAFSA, the financial assistance to be deducted should include all aid they were awarded. The institution must also deduct the maximum Direct Loan eligibility (including subsidized and unsubsidized) based on the student's grade level and the institution's best determination of dependency status.

The Future Occupations & Reskilling Workforce Advancement to Reach Demand (FORWARD) Loan Program provides loan funding to students from Texas. FORWARD has a lower interest rate than the CAL loan and Direct Parent PLUS loan.

To be eligible for FORWARD a student must:

• Be classified by the institution as a Texas resident, Texas Residency must be on file with ETBU
• Be registered with Selective Service
• Have insufficient resources to finance their education
• Meet the satisfactory academic progress requirements
• Receive a favorable credit evaluation or provide a cosigner who has good credit standing and meets other requirements
• Sign a promissory note and provide two references who live at separate addresses
• Be enrolled in a High-Demand Credential Program; Qualifying ETBU Programs: Nursing and Education 
• meet one of the following enrollment requirements:
  • Degree program: Must be enrolled in a degree program having completed at least 50% of the required coursework prior to receiving a FORWARD loan. Junior/Senior Classification at ETBU.
  • Non-degree program: Must be enrolled in a non-degree program with a duration less than two years.
  • Baccalaureate-master's degree program: Must be enrolled in master's degree coursework, with the master's degree as part of a combined baccalaureate-master's program approved by the ETBU.

For more information and to apply for a FORWARD loan click here.

**If a student is eligible but chooses not to file a FAFSA, the financial assistance to be deducted should include all aid they were awarded. The institution must also deduct the maximum Direct Loan eligibility (including subsidized and unsubsidized) based on the student's grade level and the institution's best determination of dependency status.

Private loans are obtained through a bank, credit union, or other independent lender. You will need to work directly with the lender of your choice to apply for a private loan.

ETBU has partnered with ELM Select to give you the best options when deciding which student loan best fits your needs. Go to Elm Resources to compare loan availability and apply.