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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.

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

  1. Accept your Loans in Galaxy - Log into Galaxy (www.utdallas.edu/galaxy/), click Orion, click Self Service, click Campus Financials, select view Financial Aid, select the current aid year (2012 for Fall 2011 / Spring 2012).  For loan awards you will be able to type in the desired amount (note: you cannot accept a loan amount larger than the amount offered). Once you have reviewed your financial aid, click Accept.

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

  2. Complete Entrance Counseling - Entrance counseling is required before a student may borrow a federal educational loan. Counseling will inform you of your rights and responsibilities, repayment options, forbearance and deferment, just to name a few.  You may complete entrance counseling at studentloans.gov.
  1. Sign a Master Promissory Note (MPN) - Students borrowing subsidized or unsubsidized Direct Loans or a graduate PLUS loan may 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

  1. Complete a Federal Direct Parent PLUS Loan Application – The Parent PLUS loan application can only be completed at studentloans.gov. Parents may complete the application no earlier than July 1, of the upcoming academic year (i.e. Fall 2011 / Spring 2012 application will be available on July 1, 2011).

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

    Parent borrowers who unexpectedly fail the PLUS Loan credit check should appeal the decision.

    When a parent borrower has been denied a PLUS Loan the student may be eligible to borrow additional unsubsidized Stafford Loan.

  2. Sign a Master Promissory Note (MPN) - Parents borrowing Federal Direct PLUS funds to help fund their student’s education can electronically sign their MPN at studentloans.gov.

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

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: July 1, 2011