Admission & Aid Paying for College Financial Aid Types of Aid Loans

Loans

The Federal Direct Loan Program provides eligible students with Subsidized, Unsubsidized, or Parent PLUS loans from the Department of Education.

To receive any of these loan options at the Alamo Colleges District, students must submit a request on ACES to have their eligibility reviewed. The normal processing time to be awarded a loan is 2-3 weeks, however during peak periods, the processing time is 4 weeks.

 

Eligibility

  • Student Eligibility

      • Student must be enrolled in at least 6 credit hours that count towards their Associates, Bachelors, or Certificate degree plan.
      • Student must maintain Satisfactory Academic Progress (SAP)
      • Student must complete any incomplete financial aid requirements including verification
      • Student must have financial need as determined by the FAFSA (eligibility for subsidized loan only)
      • Student's request may not exceed yearly or lifetime loan limits

  • Student Eligibility:

      • Student must be classified as Dependent as determined by the FAFSA
      • Student must be enrolled in at least 6 credit hours that count towards their Associates, Bachelors, or Certificate degree plan.
      • Student must maintain Satisfactory Academic Progress (SAP)
      • Student must complete any incomplete financial aid requirements including verification

     

    Parent Eligibility

      • Parent applying must be biological, adoptive, or a stepparent. 
      • Parent applying must have good credit history, with no defaulted student or PLUS loans. For those without good credit, additional steps to qualify can be viewed under the 'Requesting Loans' section. 
      • NOTE: First time parent plus loan borrowers for students enrolled on or after July 1, 2026 may not request more than the yearly loan limit of $20,000, or exceed the lifetime limit of $65,000 (per dependent).

Requesting Loans

  • Required Steps

    1. Complete the Federal Direct Loan Request through your ACES account by the request deadlines:

        • Fall-Spring & Spring Only Loan Deadline: May 16, 2026
        • Summer Only Loan Deadline: August 14, 2026

     

    2. Complete Entrance Counseling on studentaid.gov. This is counseling to ensure you understand your obligation to repay the loan.

    3. Complete a Master Promissory Note (MPN) agreeing to the terms of the loan on studentaid.gov.

  • 1. The parent must complete the Parent PLUS Loan Application on studentaid.gov. Parents will make their selections on: the loan amount, the loan period, and whether any refund will go to the student or parent.

    2. The parent must complete a Master Promissory Note (MPN) agreeing to the terms of the loan on studentaid.gov.

     

    Additional Requirements for Adverse Credit History

      • If the credit check was initially denied on the Parent PLUS Loan Application, there are options for it to be approved with an endorsers credit or with an appeal on studentaid.gov.
      • If either of these options are approved, the parent must also complete PLUS Credit Counseling on studentaid.gov. 
      • If the credit check was denied on the Parent PLUS Loan Application, the student may be eligible to borrow additional Unsubsidized loans upon request and a review of eligibility. A Co-signer Statement from the parent and student must be submitted before the student is awarded additional Unsubsidized loans.

Yearly Loan Limits

Student Level Dependent Loan Limits
 Independent Loan Limits

 

Subsidized

Unsubsidized

Total

Subsidized

Unsubsidized

Total

1st Year (Associates)

$3,500

$2,000 

$5,500

$3,500 

$6,000 

$9,500

2nd Year (Associates)

$4,500

 $2,000  $6,500

$4,500

 $6,000  $10,500

3rd Year (Bachelors)

$5,500

 $2,000  $7,500

$5,500

 $7,000  $12,500

4th Year (Bachelors)

$5,500

 $2,000  $7,500

$5,500

 $7,000  $12,500

 

Loan Repayment

  • Managing student loan repayment doesn’t have to be confusing. Through Alamo Colleges latest partnership with Inceptia, a nonprofit organization, you’ll have access to one-on-one counesling and resources to help you understand your payment options and stay on track with your student loans.

    Learn More

 

Frequently Asked Questions

How do I view a summary of all student loans I have received?

Keep track of your federal student loan history and learn about your loan servicers by logging in to the Federal Student Aid website and visiting "My Aid".

Parents that have a Parent Plus loan will log in to their own account to view the history of the loan. 

 studentaid.gov

Will my loan request protect my classes from being dropped?

No, submission of a Direct Loan request is not guaranteed to be approved/processed in time for funds to be received by the payment deadline.

To prevent classes from being dropped, it is recommened to have another method of paying tuition by the payment deadline. 

Are there any types of students that are not eligible to receive federal direct loans?

Yes, students admitted in a Continuing Education or Transient program are not eligible to receive federal financial aid including direct loans.

What are the interest rates for Federal Direct Loans?

Subsidized Loan 

The interest rate for a Subsidized Loan is published annually on studentaid.gov. Students are not responsible for paying the interest accrued on a Subsidized loan as it is funded by the Department of Education.

Unsubsidized Loan 

The interest rate for an Unsubsidized Loan is published annually on studentaid.gov. Students are responsible for paying the interest accrued on a Unsubsidized loan at the time of repayment. 

Parent Plus Loan

The interest rate for a Parent Plus loan is published annually on studentaid.gov. Parents are responsible for paying the interest accrued on a Parent Plus loan at the time of repayment. 

What are the repayment requirements?

Subsidized & Unsubsidized Loan 

Repayment on the Subsidized & Unsubsidized loan is completed by the student and does not begin until after the first six months you leave school or drop below half-time enrollment (known as a grace period).

Parent Plus Loan  

Repayment on the Parent Plus loan is completed by the parent and they can request for repayment to be deferred as long as their student remains enrolled. 

What if I fail to repay my Direct Loan?

Students who fail to repay their loans are considered to be in default of their loan payments and are not eligible to receive future aid until the default status is either rehabilitated or paid in full. For more information regarding the consequences of defaulting on a Direct Loan visit the FSA Collections website.

Students who are determined to have defaulted on loan payments obtained while at Alamo Colleges will be contacted by Inceptia to provide assistance on your options. Inceptia is the only organization affiliated with Alamo Colleges for loan default purposes.

What are alternative loans?

Alternative student loans are loans funded by a private lending institution of the students choosing. 

  • Each private lender will have their own set of eligibility criteria (including good credit history), interest rates, and repayment requirements. 
  • Once the student has completed the lending institutions initial steps, the lender will request eligibility certification from the Alamo Colleges District. Please plan ahead as this process will take several weeks to complete.
  • Alternative loans are primarily used when federal aid and scholarships do not cover a student's Cost of Attendance (COA). The loan amount requested may not exceed your Cost of Attendance (COA).

It is highly advised that you do not seek out alternative loan options unless you have already expended your full Federal Direct Loan options.