Grants are need-based funding, based on the information from your FAFSA, that do not require repayment. Austin College awards three types of grants:

• Federal: the Pell Grant, and the SEOG grant programs.  
• State of Texas:  Tuition Equalization Grant (TEG) for Students who graduate from a Texas high school and have resided in the state for at least 36 months, 
• Austin College Institutional Grants

The Federal Direct Loan Program requires that applicants are either U.S. Citizens or Permanent Residents. Applicants must complete the Free Application for Federal Student Aid (FAFSA) and be enrolled at least half-time. The lender for these loans is the U.S. Department of Education.

For detailed information and to apply for a Federal Direct Loans, visit studentaid.gov.

Student Loans

Federal Direct Stafford Loans are available to students who filed a FAFSA and are enrolled at least half-time. The U.S. Department of Education serves as the lender.

• Subsidized Federal Direct Stafford Loans are based on financial need. The federal government pays the interest on subsidized loans for students who are enrolled at least half-time, during deferment periods, and in some cases during the grace period.
• Unsubsidized Federal Direct Stafford Loans are not based on financial need. Interest on unsubsidized loans will accrue while you are enrolled. Students may pay the interest on these loans quarterly while enrolled or choose to defer interest payments as long as they are enrolled at least half-time; however, interest does capitalize.

Lifetime Aggregate Borrowing = $31,000 for dependent students (no more than $23,000 of which can be subsidized) and $57,000 (no more than $23,000 of which can be subsidized) for independent students or those whose parents were denied a Parent PLUS Loan.

Loans are subject to origination fees. As of October 1, 2022, for loans disbursed after this date, an origination fee of 1.057 percent is deducted from each disbursement for both the subsidized and unsubsidized Federal Direct Stafford Loan.

As of July 1, 2024, the interest rates on the Federal Direct Stafford Loans are as follows:

• Undergraduate Federal Direct Loan Interest Rates are set at 6.53% for both subsidized and unsubsidized.
• Graduate Students' Federal Direct Unsubsidized Loan Interest Rate is 8.08%

Direct Consolidation Loans allow borrowers to combine different eligible federal student loans into one Direct Consolidation Loan. Typically you would not do a consolidation loan until you are finished with borrowing including for post-graduate studies.

Parent Loans

Federal Direct PLUS Loans are available to parents who have a dependent child in college. Individual eligibility is determined by subtracting all financial aid awards for the academic year from the cost of attendance. Financial need is not a requirement for this loan. Parents must apply and be approved for this loan each year. For loans disbursed on or after July 1, 2024, the interest rate is fixed at 9.08%.

Loans are subject to origination fees.  As of October 1, 2021, for loans disbursed after this date, an origination fee of 4.228% is deducted from each disbursement on the PLUS Loan.

Private Alternative Loans

Private alternative loans are private loan funds offered through a bank for the purpose of supplementing a student’s financial aid package. They are not federally endorsed or guaranteed, but they must be certified by the Financial Aid Office to ensure the loan does not exceed your cost of attendance minus other financial aid. These loan funds are disbursed to the College and applied directly to your student account.

These loans generally require the borrower (the student) to be credit worthy or have a credit worthy co-signer and usually do not have as favorable interest rates as the federal programs. Private alternative loan interest rates, fees charged, repayment terms and repayment benefits vary between lenders.

Students are encouraged to file the FAFSA and apply for federal loans before applying for private alternative loans. For more information, contact the Financial Aid Office.

The lender you choose will require you to complete a Private Education Loan Self-Certification.  The lender may provide the form for you electronically. We recommend you use the version provided by the lender because you may be able to expedite the form by signing electronically.

New FORWARD loan opportunity from the Texas Higher Education Coordinating Board for rising Juniors/Seniors and MAT students. 

Private Lenders List

Austin College offers a list of lenders commonly used by Austin College students and parents. Students and parents may use any lender who lends for higher education purposes.

• Students and parents are not required to use a lender listed on our website. Austin College will certify, without unnecessary delay, any loan application submitted by an eligible borrower, regardless of the lender providing the loan.
• Before assisting eligible students in securing private loans, we award students any eligibility they may have for lower cost federal or state loans.

If you would like more information regarding private loans, please contact our office at finaid@austincollege.edu.

View a list of Private Alternative Lenders

Tips for Selecting an Alternative Loan Provider

There are many different alternative student loan providers from which to choose.  The Office of Financial Aid encourages you to carefully evaluate and research the terms offered by the lenders to ensure the best possible terms for you. Call the lenders, research their websites and ask questions.  Do your homework so you can make an informed decision.  We cannot make it for you.

Consider the following when choosing a lender:

• Loan Interest Rates – Interest rates vary
• Origination fees
• Repayment fees

Borrower Based Benefits – Be aware that loan terms can change yearly and repayment benefits are dependent upon specific borrower behaviors. Therefore, in order to retain borrower behavior based benefits, such as reductions for paying by auto debit and/or reductions for specified number of on-time payments, you would need to specifically follow the loan terms in order to receive the benefit.

• Auto debit interest rate reduction at repayment
• Interest rate reductions with a certain number of on-time payments
• Principal reductions at origination and/or at repayment
• Ability to regain benefits if you lost them due to a missed payment or lack of funds (non-sufficient funds)

Customer Service – When selecting a lender, it is important to consider the lender’s level of customer service.

• 24/7 toll-free 1-800 number
• Online account access
• Limited number of borrower complaints
• Electronic on-line application process and instant approval
• Flexible repayment options

Additional Information

Education Loan Code of Conduct

Students who receive scholarships and/or grants from outside sources can utilize these funds at Austin College. Please review the following to know how outside scholarships/grants can be applied:

Merit-Based Aid Only: If you are receiving only merit awards from Austin College, these outside scholarships/grants can be added to the financial aid package up to the full cost of attendance as defined by the Financial Aid Office (tuition and fees, housing and a meal plan, books/supplies, transportation allowance and personal expenses).

Need-Based Aid: If you are receiving need-based financial aid, your comprehensive financial aid package may be modified to accommodate the receipt of any outside scholarships/grants according to federal policy. For any given year, the outside funds received by you will be applied to help reduce student indebtedness. Need-based student loans will be reduced first. If all need-based loans have been eliminated due to receipt of outside funds, it may be necessary to reduce other need-based grant aid, (typically not merit aid), however, total cost of attendance cannot be exceeded.

Students eligible to receive education benefits from the Veterans Affairs (VA) Administration must provide their certification form from the VA to the Registrar’s Office. To receive benefits from the various programs, i.e. Chapter 30, 31, 33, 35, 1606 or 1607, students must be making Satisfactory Academic Progress (SAP) towards a degree.

Austin College participates in the Federal Work-Study Program and the Texas Work-Study Program, which are available to students with financial need. There are a limited number of Austin College student employee positions available for students who qualify that are non-need-based jobs.

All Federal Work-Study, Texas Work-Study, and Austin College student employee positions are assigned through the regular financial aid process and part of a student’s financial aid package.

New Students who have been awarded employment as part of their aid package will be given first priority for student employee positions on campus, and will typically be assigned a job during the first week on campus.  Student employee positions include things like working the circulation desk at the library, IT helpdesk, and the desk at the Dickey Fitness Pavilion - which are also excellent resume builders!

New students who are not awarded employment as part of their aid package can come by the Financial Aid Office the second week of the semester to see what job openings still remain. All student workers are required to complete a W-4, direct deposit form, and an I-9 Federal Employee Verification.