Loans
Texas Tech University offers a variety of educational loan options for students to assist the student with their educational expenses. Students may select loans offered by the state of Texas, the federal government, or alternative loans through lenders.
- Federal Stafford Loans
- Types of Federal Stafford Loans
- Loans By Web
- Maximum Federal Stafford Aid Eligibility
- Federal Graduate PLUS Loan
- Notes
- Preferred Lender List (TTU Office of Student Financial Aid)
Federal Stafford Loans
The current interest rate on federal Stafford loans first disbursed on or after July 1, 2006 is a fixed 6.8%. Federal Stafford and Graduate PLUS loan interest rates change each July 1.
- Repayment begins six months after the student has graduated or is no longer attending at least half time as determined by the university.
- Before loan monies can be released, the student must:
- Have completed the Loans By Web process, including an Entrance Loan Counseling Session and the MPN if the student has changed lenders, transferred, or is a new Stafford Loan applicant.
- Be enrolled in at least 6 hours each semester.
- Be making satisfactory academic progress.
- In general, federal Stafford loans are released in two disbursements - half in the fall and half in the spring.
- Loan monies will be released to pay tuition and fee charges once the student has met all eligibility requirements and funds have been received from the lender. Most loan funds are electronically applied to your Student Business Services (SBS) billing account, with any refund automatically mailed to your local address on file with Student Records. Students may also have their refund automatically deposited into personal checking or savings accounts. The student must provide bank information to SBS to participate in this option. There are a few out-of-state lenders who disburse money via a paper check; these checks are released to the student at the Student Business Services Office in 301 West Hall.
- Loan fees and/or a guarantee fee may be charged for each Stafford loan as per the Higher Education Act of 1965.
- An exit interview is a federal requirement once a student who has a Stafford Loan drops below half-time enrollment status; see http://www.exitinterview.com/Base/Default.aspx.
Types of Federal Stafford Loans
- Subsidized Stafford Loans are based on financial need. The federal government pays the interest for the student during the following periods:
- While the student is in school;
- During the six-month grace period after leaving school, or after the student drops below half-time attendance; and
- During deferments (periods when payments are temporarily postponed).
- Unsubsidized Stafford Loans are not based on financial need. Unsubsidized Stafford Loans are for students who do not qualify for a subsidized loan or to supplement a student's subsidized loan. Students are responsible for all of the interest on unsubsidized loans.
Federal Stafford borrowers at Texas Tech University must complete the loan application process on the Loans By Web (LBW) site.
Loans By Web
Once a student has received their award notice from Texas Tech University, the student will complete the Loans By Web; an instruction sheet for the LBW may be found online at https://lbw.tgslc.org/LBW/start.do. The borrower will need to be sure to complete each step to receive the confirmation page in Loans By Web. The confirmation page should be printed and kept for possible future reference.
TTU students can often find the answers they need in these pages and through TechSIS/Raider Aid with their e-raider ID.
If any problems or questions arise during the completion of the Loans By Web process, please contact Texas Guaranteed Student Loan Corporation at 1-800-845-6267.
Maximum Federal Stafford Aid Eligibility
Subsidized Stafford Loan: $8,500
Unsubsidized Stafford Loan: $12,000
Note: Loan limits are for an academic year, which runs from August to August.
More information regarding the Federal Stafford loan program can be found on the Texas Guaranteed Student Loan Corporation Web site.
Federal Graduate PLUS Loan
The current interest rate on federal Graduate PLUS loans first disbursed on or after July 1, 2006 is a fixed 8.5%.
- The Federal Graduate PLUS loan is available to graduate and professional students.
- Graduate and professional students must be enrolled at least half-time.
- There are no annual or aggregate loan limits. Students may borrow the cost of attendance less any financial aid received, as certified by the school.
- A credit check is required. Borrowers with adverse credit can either clean up their credit or secure an endorser.
- Deferment options are available. Federal Graduate PLUS loan borrowers qualify for the same deferment options as Stafford loan borrowers. This includes unlimited in-school deferment so the Federal Graduate PLUS loan borrowers can defer repayment of their loans during their in-school status.
- There is no grace period; however, Federal Graduate PLUS loan borrowers may defer their loans during their in-school status.
- Like the unsubsidized Stafford, 100% of the Federal Graduate PLUS loan is unsubsidized. The borrower is responsible for interest that accrues on the loan during all periods.
- The same repayment options are available to Stafford and Federal Graduate PLUS loan borrowers:
- Regular payments of principle and interest
- Reduced payments that may be as low as interest-only
- Payment based on income
- Extended repayment for qualified borrowers
- The repayment term is up to 10 years with extended repayment available for qualified borrowers.
- Federal Graduate PLUS loans may be canceled due to death and disability.
- A 3% Federal origination fee must be charged to and paid by the borrower for loans first disbursed July 1, 2006 and later.
- A 1% guarantee fee will be charged for Federal Graduate PLUS loans guaranteed on or after July 1, 2006. (USA Funds will be covering 1% guarantee fee for borrower.)
Notes
- Grants and TTU scholarships are also applied toward account balances; adjustments may be made for less than full-time status.
- Stafford loan awards are based on at least half-time enrollment, and payments are released in two disbursements. The second payment of a Stafford loan is released mid-semester if the Stafford loan is awarded for a single semester.
- The nine-month cost of education (student budget) is based on the average cost of attendance for a student enrolled in 30 credit hours for the fall/spring semesters and includes the following: tuition/fees, room/board, transportation, books and miscellaneous expenses. If the student is an out-of-state resident, the cost of education is higher to account for the increased cost of tuition/fees.
- There is a separate application process for students applying for summer aid. In general, the online Summer Aid Application is available between the months of February 1st and June 29th.
- Stafford loan amounts are based, in part, on the cost of education, as determined by the Office of Student Financial Aid at Texas Tech University, minus grants, scholarships and third-party payments and are subject to yearly loan limits which run from August to August. Students must maintain Satisfactory Academic Progress (SAP) and be enrolled in at least 6 hours each semester, fall/spring, and/or at least 4 hours over the summer - 2 hours each summer session or 4 hours in one summer session - to be considered for Stafford and TPEG.

