Federal Direct Loan Program

Federal Loan Eligibility Requirements

·         Student must complete a FAFSA.

·         Student must meet satisfactory academic progress and performance requirements as determined by Texas Southern University.

·         Student must be enrolled at least half-time (6 hours) at the point of disbursement.

·         Be a citizen or eligible non-citizen.

·         Neither parent nor student may be in default on any federal loan or owe a refund back to any federal program.

Federal Direct Subsidized Stafford Loan

The Federal Direct Subsidized Stafford Loan is awarded to students on the basis of financial need determined by the Free Application for Federal Student Aid (FAFSA). The lender is the U.S. Department of Education rather than a bank or other financial institution. The federal government pays the interest on this loan until you begin repayment. Repayment of this loan will begin six months after you graduate, leave school, or drop below half-time enrollment (6 hours). To qualify for this loan please see the Federal loan requirements.

Federal Direct Unsubsidized Stafford Loan

The Federal Direct Unsubsidized Stafford Loan Program was created by the government to assure that all students, regardless of their income, would be able to obtain a student loan. The federal government does not pay the interest while you are in school. Interest will be charged from the time the loan is disbursed until it is repaid in full. If you decide to capitalize or defer the interest, it will be added to the principle amount of your loan and this will increase the amount you have to repay. If you choose the option of paying the interest as it accumulates, then you will pay less in the long run. Repayment of the interest and principle will begin six months after you graduate, leave school, or drop below half-time enrollment (6 hours). To qualify for this loan please see Federal loan requirements.

Federal Direct Stafford Loan Application Process

Texas Southern University uses Direct Lending to process all federal Stafford loans. All first-time Stafford Loan borrowers must complete Entrance Counseling and sign a Master Promissory Note (MPN) on the web through the Department of Education's Direct Lending website. These steps are only required once, but must be completed before any Stafford loan funds will be disbursed. Upon receipt of the Financial Aid Award Letter, students must accept the Direct Subsidized, Unsubsidized, or PLUS on through the TSU MyWeb account. First time borrowers will then move on to complete Entrance Counseling and sign an MPN, but loan processing for students who have had a Federal Direct Stafford loan in a previous year will be considered complete at this point.  Please note that the Master Promissory Note is not available until the student has accepted the loan, completed Entrance Loan Counseling and registered in 6 or more hours for the appropriate term. 

Federal Direct Parent Loans for Undergraduate Students (PLUS)

The purpose of the Federal Direct Parent Plus Loan is to assist parents by providing a source of loan funds to help pay the cost of education for dependent undergraduate students. Parents may borrow up to the full cost of attendance less any other financial assistance the student receives. Parents must be able to pass a credit check or obtain a 'co-signer' who is able to pass the credit check. Both the parent and student must meet general eligibility requirements for federal financial assistance. Students must be enrolled at least 6 hours each semester to be eligible.

Federal Direct Parent PLUS Loan Application Process

Texas Southern University uses Direct Lending to process all Federal Direct PLUS loans. After the student has been awarded, the parent should complete the Parent Plus Loan Application. Submit the complete, signed application to the Office of Student Financial Assistance for processing.  Once the student has received an email notification from Texas Southern University,  the parent borrower may proceed to the Direct Lending website and complete the Master Promissory Note.  You may notify us of any requested loan adjustments after the loan has been requested by having the student submit a File Update Form.

Federal Direct Graduate PLUS Loan Application Process

Texas Southern University uses Direct Lending to process all Federal Direct PLUS loans. After the student has been awarded, the parent should complete the Graduate Plus Loan Application. Submit the complete, signed application to the Office of Student Financial Assistance for processing.  Once the student has received an email notification from Texas Southern University, student may proceed to the Direct Lending website and complete the Master Promissory Note.  You may notify us of any requested loan adjustments after the loan has been requested by submitting a File Update Form.

Alternative Loans

Alternative student loans are offered by banks or lending institutions to help students and parents bridge the gap between the cost of education and the amount of financial aid received. These are private supplemental loans that are NOT guaranteed by the federal government. Private or alternative loans typically have interest rates that rise and fall with the economy. Private loans typically use credit scoring as part of the approval process.  Terms and conditions vary according to each lender’s guidelines.  Students should review all information on potential lenders including, but not limited to the repayment terms, interest rate, deferment privileges, and cancellation terms. Important considerations are the stability of the lending institution within the past 3 years, quality of the customer service, and ease in accessing student loan account information.  Many lenders have information available through their websites and helpful customer service agents to assist you with the process.  If you are approved and the university is required to complete a certification, read the instructions carefully.  Each lender has developed a certification process that is unique to their organization.  TSU will work cooperative with you to complete the certification process and disburse your funds accordingly.