Skip to Main Navigation
Skip to Main Content
 

What is Direct Lending (DL)?

The William D. Ford Direct Loan Program provides federal Stafford Loans to students and PLUS Loans to parents. Under Direct Lending the school and student receive funds directly from the Department of Education.  In other words, the Department of Education serves as your lender for the Stafford and PLUS loan programs.

Directions to Accept Loans

Steps for Receiving your Stafford and Graduate PLUS Loan Funds (Students)

  1. Accept your Loans in Orion - To accept, reduce or decline your Direct Loan award, log into Galaxy (www.utdallas.edu/galaxy/), click Orion, click Self Service, click Campus Financials, select view Financial Aid, and select the current aid year (2013 for Fall 2012 / Spring 2013).  If you wish to borrow a loan amount different than the amount you were offered, type the amount that you wish to borrow (note: you cannot accept a loan amount larger than the amount you have been offered). Once you have reviewed your financial aid, click Accept.

    Note: Students cannot accept a Federal Direct Parent PLUS Loan through the process described above. If a parent chooses to borrow any amount of Federal Direct Parent PLUS Loan funds, the loan will be accepted by the financial aid office after we receive a completed Federal Direct Parent PLUS Loan application.

  2. Complete Entrance Counseling - Entrance counseling must be completed before any Federal Direct Loan funds can be credited to your student account. Counseling will teach you about many topics including your rights and responsibilities, the terms of your loan, and your repayment options.  You can complete entrance counseling at studentloans.gov.
  1. Sign a Master Promissory Note (MPN) - Students borrowing Direct Subsidized, Direct Unsubsidized or Direct Graduate PLUS Loan funds can complete their MPN at studentloans.gov.

Please note: Graduate PLUS loan borrowers are subjected to a credit check.

Steps for Receiving your Parent PLUS Loan Funds

Parents who wish to borrow a Federal Direct Parent PLUS loan must complete both steps listed below:

  1. Request a Direct PLUS Loan – The Parent PLUS Loan application can only be completed at studentloans.gov. After signing in to studentloans.gov, click the "Request a Direct PLUS Loan" link and then choose "Parent PLUS". Parents may complete the application no earlier than July 1 of the upcoming academic year. For example, the fall 2012/ spring 2013 application will be available on July 1, 2012.

    Please Note: The parent applying for the Federal Direct Parent PLUS Loan must pass a credit check or have a cosigner who will pass a credit check. A parent who owes an overpayment on a Federal grant or is in default on a Federal Loan is ineligible to borrow a Federal Direct Parent PLUS Loan unless satisfactory arrangements to repay the grant or loan are made.

  2. Complete Master Promissory Note - The Master Promissory Note (MPN) is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the U.S. Department of Education. After signing in to studentloans.gov, click the "Complete Master Promissory Note" link and then choose "Parent PLUS". Parents may complete the MPN at any time.

    3. Federal Stafford Loan Annual and Aggregate Loan Limits

    Dependent undergraduate students may borrow up to:

    • $5,500 for freshmen; no more than $3,500 may be subsidized
    • $6,500 for sophomores; no more than $4,500 may be subsidized
    • $7,500 for juniors and seniors; no more than $5,500 may be subsidized

    If a dependent student's parent applies for and is denied a PLUS loan, the student may be considered independent for Stafford Loan borrowing purposes.

    Independent undergraduate students may borrow up to:

    • $9,500 for freshmen; no more than $3,500 may be subsidized
    • $10,500 for sophomores; no more than $4,500 may be subsidized
    • $12,500 for juniors and seniors; no more than $5,500 may be subsidized

    Undergraduates who, in their senior year, attend for only one semester (i.e. students graduating at the end of the fall term) will have their loan eligibility prorated, based upon the number of credits hours for which the student is registered in that final term.

    Graduate or Professional students may borrow up to:

    • $20,500; no more than $8,500 may be subsidized

    The maximum aggregate loan limits are:

    • $31,000 (maximum $23,000 subsidized) for dependent students
    • $57,500 (maximum $23,000 subsidized) for independent students
    • $138,500 (maximum $65,500 subsidized) for graduate and professional students

     

     
 
 

Updated: April 13, 2012