Graduate Student Loans

To receive a Federal Direct Subsidized or Unsubsidized Loan, you must:

• File a FAFSA Annually: You must have a valid FAFSA on file with Baylor University to determine general eligibility.
  • Be a US citizen or an eligible non-citizen.
  • Have a valid Social Security number.
    (With exception of students from the Republic of the Marshall Islands, Federated States of Micronesia, or the Republic of Palau)
  • Show that you are qualified to obtain a college education by:
    • Having a high school diploma or a recognized equivalent - OR -
    • Complete a high school education in a homeschool setting approved under state law.
      (Or—if state law does not require a homeschooled student to obtain a completion credential—completing a high school education in a homeschool setting that qualifies as an exemption from compulsory attendance requirements under state law)
• Sign the certification statement on the FAFSA form stating that you are not in default, owe money for a federal grant, and will use federal student aid for educational purposes only.
• Be enrolled at least half-time.
• Be enrolled in a program that leads to a degree.
• Maintain Satisfactory Academic Progress (SAP).
• Be offered any eligible Federal Pell Grant.

Additional eligibility requirements may apply to certain situations including non-U.S. citizens, students with criminal convictions, students with intellectual disabilities, or ability-to-benefit eligible students.

There are limits to the amount of unsubsidized loans that you may be eligible to receive each academic year (annual loan limits) and the total amounts that you may borrow for graduate study (aggregate loan limits).

The actual loan amount you are eligible to receive each academic year may be less than the annual loan limit. These amounts vary depending on:

• FAFSA Determined Information:
  • A completed FAFSA.
  • Your Cost of Attendance, Estimated Financial Assistance (EFA), and remaining student budget in respect to the annual and aggregate borrowing limits.
• Annual loan limits assume that your program of study is at least a full academic year.
• If a student intends to attend for an entire academic year, they will be offered eligible loans with substantially equal disbursements for each term.
• Schedule of Reduction: All unsubsidized and subsidized annual loan amounts will be limited based on enrollment status for those less than full time.

Graduating without reaching the aggregate limit is possible with careful planning. Click here and here to view sample loan disclosure statements. You will receive a statement specific to your loan before your loan is disbursed.

• Remember, only borrow what you need. You can borrow less than you are offered each year.
• Be aware of aggregate limits when you borrow and plan for the full length of your program.

Annual and Aggregate Federal Educational Loan Limits

• The graduate aggregate limit does not include undergraduate federal loans.
• Students working toward a Master’s degree in Public Health (MPH) are only able to borrow up to the standard Graduate Student loan limits.
• If the total loan amount you receive over the course of your education reaches the aggregate loan limit, you are not eligible to receive additional loans.
• As of July 1, 2026, the lifetime federal loan limit is $257,500, which does not include undergraduate Parent PLUS loans.

Legacy provisions allow continuing students to temporarily continue to borrow under the prior federal loan rules and limits. This means that students who qualify for legacy provisions may continue borrowing Graduate PLUS loans. Current students working toward a Master’s in Public Health and who qualify for legacy provisions, will be able to continue borrowing up to $33,000 in unsubsidized loans a year. 

Schedule of Reduction: All direct loan annual amounts will be reduced based on enrollment status for those less than full time.

Legacy Provision Qualifications:

• A Direct Loan is disbursed on or before June 30, 2026.
• The student must remain in the same program at the same school.
• There is no withdrawal or break in enrollment.
  • For trimester students, not attending the summer term is considered a break in enrollment which will make you ineligible for the legacy provisions.
  • For semester students, the summer term is not mandatory. But if you attend summer and withdraw, it will be considered a drop in enrollment. This will result in a loss of the legacy provisions.
• The student must be within their expected time to complete the program (the shorter of three academic years or the remaining program length).
• The calculation for the student’s Expected Time to Credential (ETTC) or remaining program length, is based on:
  • The determined length of the student’s academic program.
  • The number of academic terms the student has completed in that program.
  • For transfer students only, the number of credits they have earned toward their degree as of Spring 2026.
• For ETTC purposes, each completed academic term counts, regardless of enrollment intensity or whether the student received federal financial aid during that term.

Annual and Aggregate Federal Educational Loan Limits for Legacy Students.

Origination Fees

The total origination fee for Subsidized and Unsubsidized Loans is 1.057% of the amount borrowed for loans disbursed after October 1, 2020. The origination fee is subject to change annually at the end of September. Origination fees for the next academic year are released in June.

Interest Rates

New rates will be established each June for the upcoming year. The interest rate for a loan will apply for the life of the loan (fixed-rate). As a result, it is likely you will have a set of fixed-rate loans, each with a different interest rate. See studentaid.gov for new rate information annually. 

Additional Interest Rate Support

• Understanding interest rates and fees—Find out how interest is calculated.
• Information for military members—If you are a member of the military, you may be eligible for special interest benefits relating to your federal student loans.

The Master Promissory Note (MPN) for Direct Unsubsidized Loans 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. It also explains the terms and conditions of your loan(s).

You may receive more than one loan under an MPN over a period of up to 10 years to pay for your educational costs, as long as the school is authorized to use the MPN in this way and chooses to do so.

You must sign a Direct Loan Master Promissory Note. This will be the only promissory note you will have to sign as long as you continue to attend Baylor as an undergraduate student. You will need to complete a new MPN as a graduate student. Your FSA ID is required to eSign at studentaid.gov/mpn. 

• Graduate MPN

• You have the right to decline any financial aid that you are offered.
• Before your loan money is disbursed, you may cancel all or part of your loan at any time.
• After your loan money is disbursed, you may return all or a portion of your loan proceeds that credited to your account, to your lender within 90 days of the notice that we send you. 
• If you want to cancel or return loan proceeds, please submit a Contact Us form.
• You have a number of rights and responsibilities pertaining to borrowing student loans. Click here for a list of important rights and responsibilities of which you should be aware.

Entrance counseling ensures you understand the terms and conditions of your loan and your rights and responsibilities. You will learn what a loan is, how interest works, your options for repayment, and how to avoid delinquency and default.

Complete Direct Loan entrance counseling after accepting an Unsubsidized Loan offer. Go to studentaid.gov/entrance-counseling and sign in with your FSA ID to complete entrance counseling. Entrance Counseling will only need to be completed once, for first time borrowers of a loan type, before loan disbursement can take place.

• Learn more about terms, conditions, borrower responsibilities, and important information about the Direct Loan Program.

• Loan Disbursement
  • Once all requirements are met, accepted Title IV loans will schedule to disburse, no earlier than ten days before the first day of class.
  • In most cases, we will apply the loan money to your student account to pay tuition, fees, and any other authorized charges.
  • If there is money left over, we will initiate a refund of the surplus.
• Reporting
  • Title IV loan information will be submitted to NSLDS and accessible by authorized agencies, lenders, and institutions, for students, or parents of students, who enter into an agreement regarding Title IV loans [HEOA 489 amended HEA Sec. 485B] – Access Title IV loan information here: https://nsldsfap.ed.gov/login.
• After your loan is disbursed, you will be contacted by your loan servicer.

Exit counseling is required each time you cease to be enrolled at least half-time. If you drop below half-time hours, withdraw, graduate, or stop attending, you are required to complete exit counseling by logging in with your FSA ID at studentaid.gov/exit-counseling. This applies for borrowers under the Federal Perkins Loan Program, William D. Ford Federal Direct Student Loan Program, and under the Federal Stafford Loan Program. The purpose of exit counseling is to ensure you understand your student loan obligations and are prepared for repayment.

• Learn more about repayment and exit counseling for the Direct Loan Program

If a student meets the criteria above, exit counseling is required each time there is more than a 30 day break in at least half-time enrollment, EXCEPT during non-compulsory terms.

Understanding the details of repayment on your federal student loan is extremely important. Unsubsidized loan programs generally observe the following provisions:

• A 6-month grace period is provided before payments are due.
• Interest accrues during your grace period.
• Your loan servicer will provide you with a loan repayment schedule.
• There are multiple repayment options available to choose from.
• Your billing statement will explain how much to pay and when.
• You are required to repay all loans that you have borrowed. Under special circumstances, there are student loan forgiveness options.

Repayment Support Information

• Who is my loan servicer?
  • Find out at the Student focused National Student Loan Data System (NSLDS)
• What support does the Department of Education provide?
  • Repayment Options & Making Payments: Repaying your Federal Student Loans
  • Steps to Repayment Success: Student Loan Repayment Checklist
• Sample Re-Payment Schedule

Federal financial aid regulations limit the total amount of financial aid you can receive to your Cost of Attendance (COA). This is the estimated total of your educational expenses for the academic year.

COA Loan Borrowing Impacts

If you have borrowed loans up to your full COA and later receive additional aid (such as a scholarship, grant, stipend, or departmental award), federal regulations require the Financial Aid Office to reduce your loan amount so your total aid remains within the COA limit.

If your loan funds have already disbursed and you have received a refund, you will not receive another refund after the adjustment, since those funds have already been released to you. The adjustment will appear as a swap of funding where the new aid replaces a portion of your loan, keeping your total aid the same.

We encourage students to notify Baylor One Stop early, if you expect to receive additional awards. Early communication helps minimize future adjustments and ensures aid remains compliant with federal regulations.

Need to Appeal Your COA?

If your educational expenses exceed Baylor’s standard Cost of Attendance, you may request a review through the Cost of Attendance Adjustment Appeal. 

Under the One Big Beautiful Bill Act, legacy provisions allow for continuing students to temporarily continue to borrow under the prior federal loan rules. This means that students who qualify for legacy provisions may continue using Graduate PLUS loans.

Schedule of Reduction: All Grad PLUS annual loan amounts will be reduced based on enrollment status for those less than full time even for those under legacy provisions.

Legacy Provision Qualifications:

• A Direct Loan is disbursed on or before June 30, 2026.
• The student must remain in the same program at the same school.
• There is no withdrawal or break in enrollment.
  • For trimester students, not attending the summer term is considered a break in enrollment which will make you ineligible for the legacy provisions.
  • For semester students, the summer term is not mandatory. But if you attend summer and withdraw, it will be considered a drop in enrollment. This will result in a loss of the legacy provisions. 
• The student must be within their expected time to complete the program (the shorter of three academic years or the remaining program length).
• The calculation for the student’s Expected Time to Credential (ETTC) or remaining program length, is based on:
  • The determined length of the student’s academic program.
  • The number of academic terms the student has completed in that program.
  • For transfer students only, the number of credits they have earned toward their degree as of Spring 2026.
• For ETTC purposes, each completed academic term counts, regardless of enrollment intensity or whether the student received federal financial aid during that term.

• First, complete the Free Application for Federal Student Aid (FAFSA).
• Review your Student Aid Report (SAR) and financial assistance listed in your financial aid offer to determine if a PLUS loan is the best fit for you.
• Timing of Application
  • The credit check for a PLUS loan is valid for 180 days and it is important to submit your application no earlier than 180 days before the upcoming first day of class.
  • The studentaid.gov website will accept applications for an upcoming academic year beginning April 15, but Baylor University may not process the application until mid-June. Monitor your account in BearWeb for processing.
• Submit a PLUS Application at studentaid.gov/plus-app/grad/landing
  • Select a Loan Period
    • Semester Graduate Students
      • Fall/Spring - August to May
      • Fall - August to December
      • Spring - January to May
      • Summer - May to August
    • Law Students
      • Fall/Winter/Spring - August to April
      • Fall - August to November
      • Winter - November to January
      • Spring - February to April
      • Summer - May to August
    • We encourage you to select a loan period for the entire academic year (if you are attending the entire year), rather than a term at a time to avoid submitting an application (and possibly a credit check) multiple times.
    • Loans requested for the entire academic year will be split into substantially equal disbursements among terms/periods.
      Adjustments can be made upon request by submitting a Contact Us form.
    • Annual limits associated with Direct Loans are based on the SAY or BBAY defined academic year the student is in. Learn more about SAY/BBAY and loan periods under “Private Loans” and “Loan Periods” below.
    • Loans requested for the entire academic year (SAY or BBAY) will be split into substantially equal disbursements among terms/periods. Adjustments to loans can be made upon request by submitting a Contact Us form. Increase requests beyond what you were approved for in your application must be made at studentaid.gov.
    • Summer is a trailer term for students in a SAY. New loan applications must be submitted for this term.
  • Specify a Loan Amount
    • We encourage you to review your expenses carefully and only apply for the amount you truly need to support your educational success.
    • Utilize our PLUS Loan Calculator tool to understand PLUS Loans fees and determine the amount you would like to request borrow.
      • “Maximum Amount” – we will process an approved loan to the max amount available (Cost of Attendance minus All other Financial Aid received.)
      • Or Define a specified amount.
  • Approval Process
    • The Department of Education will send a confirmation of approval or denial to you and our office (if you select Baylor to receive the information – our school code is 003545).
    • If denied, you will be presented with options covered in “PLUS Loans and Adverse Credit History” above.

The limit on a Grad PLUS Loan is the student's cost of attendance minus any other financial aid received.

• Graduate PLUS borrowers must complete a master promissory note (MPN) at studentaid.gov/mpn/grad/landing. The MPN contains important terms and conditions of Graduate PLUS Loans, as well as borrower rights and responsibilities.
  • The student borrower completes the MPN
  • The MPN is good for ten years.
    If a MPN does not connect to a loan that disburses, it will be closed to any new loans after one year.
• If a loan has an approved appeal or endorser, the MPN is good for this loan only. If a new loan is approved later, a new MPN must be completed.
• First time Direct Graduate PLUS borrowers must complete Entrance Counseling.
• If your loan application has been approved following an appeal or endorser approval, the student borrower must complete Credit Counseling for PLUS borrowers.
• Processing
  • We begin processing new loan applications mid-June for the upcoming aid year.
  • We process new loan applications or updates to applications through the academic year Monday-Friday.
  • It can take 5 to 10 business days (or longer during peak periods) to process an approved application.
  • Monitor your email for updates from Baylor and the Department of Education.
  • Monitor BearWeb for information regarding processing of applications.
• Loan Disbursement
  • Once all requirements are met, accepted Federal educational loans will schedule to disburse, no earlier than ten days before the first day of class.
  • In most cases, we will apply the loan money to your student account to pay tuition, fees, and any other authorized charges.
  • If there is money left over, refunds will be made.
• Reporting
  • Federal educational loan information will be submitted to NSLDS and accessible by authorized agencies, lenders, and institutions, for students, or parents of students, who enter into an agreement regarding Federal Educational loans [HEOA 489 amended HEA Sec. 485B] – Access Federal Educational loan information here: https://nsldsfap.ed.gov/login.
• After your loan is disbursed, you will be contacted by your loan servicer. You will receive a Loan Disclosure Statement (plain language version) specific to your loan before your loan is disbursed.

In the denied Graduate PLUS Application, select one of the following Credit Action Choices:

• “I want to obtain an endorser”
  • The borrower may obtain an endorser who does not have an adverse credit history. An endorser is someone who agrees to repay the PLUS loan if you do not repay it.
  • Request your that your endorser submits an endorser addendum, for further credit review and application consideration.
• “I want to provide documentation of extenuating circumstances.”
  • Submit documentation to the U.S. Department of Education stating that there are extenuating circumstances relating to your adverse credit history by applying for an appeal. 
• “I do not want to pursue a Direct PLUS Loan at this time.”
  • This ends the Direct Graduate PLUS Loan application process at this time.
• “Undecided”
  • This choice keeps the denied application open for endorsement or appeal for the academic year, or until the credit expires, whichever comes first.

Exit counseling is required each time you cease to be enrolled at least half-time. If you drop below half-time hours, withdraw, graduate, or stop attending, you are required to complete exit counseling by logging in with your FSA ID at studentaid.gov/exit-counseling. The purpose of exit counseling is to ensure you understand your student loan obligations and are prepared for repayment.

• Learn more about repayment and exit counseling for the Direct Loan Program

If a student meets the criteria above, exit counseling is required each time there is more than a 30 day break in at least half-time enrollment, EXCEPT during non-compulsory terms.

Understanding the details of repayment on your federal student loan is extremely important. The Direct Graduate PLUS loan program generally:

• Does not have a grace period.
• You are not required to start making payments until 6 months after you graduate, leave school, or drop below half-time enrollment. Interest will accrue during this time.
• Your loan servicer will provide you with a loan repayment schedule.
• There are repayment options available.
• Generally, you will have 10 to 25 years to repay your loan, depending on the repayment plan you select.
• Your billing statement will explain how much to pay and when.
• You are required to repay all loans that you have borrowed. Under special circumstances, there are student loan forgiveness options.

Repayment Support Information

• Who is my loan servicer?
  • Find out at the Student focused National Student Loan Data System (NSLDS)
• What support does the Department of Education provide?
  • Repayment Options & Making Payments: Repaying your Federal Student Loans
  • Steps to Repayment Success: Student Loan Repayment Checklist
• Sample Re-Payment Schedule 

Federal financial aid regulations limit the total amount of financial aid you can receive to your Cost of Attendance (COA). This is the estimated total of your educational expenses for the academic year.

COA Loan Borrowing Impacts

If you have borrowed loans up to your full COA and later receive additional aid (such as a scholarship, grant, stipend, or departmental award), federal regulations require the Financial Aid Office to reduce your loan amount so your total aid remains within the COA limit.

If your loan funds have already disbursed and you have received a refund, you will not receive another refund after the adjustment, since those funds have already been released to you. The adjustment will appear as a swap of funding where the new aid replaces a portion of your loan, keeping your total aid the same.

We encourage students to notify Baylor One Stop early, if you expect to receive additional awards. Early communication helps minimize future adjustments and ensures aid remains compliant with federal regulations.

Need to Appeal Your COA?

If your educational expenses exceed Baylor’s standard Cost of Attendance, you may request a review through the Cost of Attendance Adjustment Appeal. 

Eligibility for private loans often depends on the student's credit score; therefore, a co-signer is most often required. Even if a co-signer is not required, the student can usually receive a more favorable rate with a co-signer. Private loans generally cost more than the education loans offered by the federal government but are less expensive than credit card debt. 

Some lenders offer a fixed rate product, while others offer a variable rate product. Some lenders offer both types. A fixed interest rate will not fluctuate over time. A variable interest rate moves (up or down) based on changes of an underlying index. Some variable rate loans have an interest cap which cannot be exceeded. 

Use your financial aid offer, your BearWeb account, or contact Baylor One Stop to determine your maximum private loan eligibility. You should only request loan funds to cover your specific educational needs rather than the maximum allowed for the enrollment period. We recommend you borrow for the full academic year, not one semester at a time. Interest does not begin accruing on each portion of the loan until that portion is disbursed. Calculate how much you need to borrow for the semester and double that amount to cover both the fall and spring semesters. If you need help preparing a personalized budget, you may make an individual appointment by emailing Financial_Foundations@baylor.edu.

When submitting a loan application with a lender, please be sure to enter your desired loan amount. 

Please use the following dates as a guide to help select the loan period you will request on a loan application with a lender. 

It is important that the start and end dates indicated on your loan application match the start and end dates of the term or terms you are needing the loan to cover. 

At Baylor University, there are two measurement categories for an academic year: a traditional academic or scheduled academic year (SAY) or Borrower-Based Academic Year (BBAY). 

Traditional Academic Year (SAY) 

• Begins in fall and ends in the spring, with summer as a non-compulsory trailer term. 
• All summer aid is packaged separately. Summer aid is not packaged until a student enrolls in the summer term. Summer loans must be applied for separately. 
• There are undergraduate and graduate programs that operate under a SAY. 

Borrower-Based Academic Year (BBAY) 

• Can be trimester, quarters, and contain modules.
• Can begin at different times during the year, depending on the program, and when the student begins attending.
• Currently, online graduate and the ABSN programs operate under a BBAY. 

Please keep in mind that the loan periods listed here are based on traditional semester student programs. Online programs in trimester, quarter, or borrower based academic years may have differently defined periods of enrollment that may create a different loan period.  

General Loan Periods

• Graduate Students
  • Fall/Spring - August to May
  • Fall - August to December
  • Spring - January to May
  • Summer - May to August

Some important factors for you to consider in choosing a lender include cost (interest rates and potential origination fees), flexibility (re-payment options), and customer service. Common customer service considerations include the availability of a fixed-rate loan product, account information online, deferment options, and co-signer release options. 

Baylor utilizes ELMSelect, a neutral lender and product comparison tool, to present the lenders on our preferred lender list to you. Access our lender list by visiting: 

ELMSelect

IMPORTANT:  You are NOT restricted to the lenders presented on our preferred lender list. You should not be directed to any specific lender by the University; you may choose any lender and follow their application process. 

We provide this list as a resource for you to research and make the best selection for your educational funding needs. This list is not exhaustive and other options are available. You do not need to borrow from a lender on this list. 

Preferred Lender Arrangements

Placement on the lender list is the result of our annual evaluation of the lender's borrower benefits offered, timely processing, flexibility, historical certification levels at Baylor University, and customer service to you and our staff. To ensure lenders on this list are selected based on the best interests of the borrowers we specifically review: 

• Payment of origination or other fees on behalf of the borrower.
• Highly competitive interest rates, or other terms, conditions, and/or provisions. 
• High quality loan servicing. 
• Additional benefits beyond typical standard terms, conditions, and/or provisions in loan borrowing. 

We exercise a duty of care and loyalty to our students when compiling the preferred lender list without prejudice and for the sole benefit of students and families at Baylor University.  We will not deny, impede the borrower’s choice of lender, or cause unnecessary delay in loan certification for those who choose a lender that is not included on the preferred lender list. Vendors on our preferred list were last reviewed July 2024.

When viewing Lenders on ELMSelect, PLEASE BE SURE TO: 

• Click on the VIEW button to see more information about the lender and loan options. 
• View the DETAILS to see the Lender & Servicer information to understand any vendor affiliation to other lenders on the list and loan program specific disclosures. 

Private Education Loan Self-Certification

Instructions: Obtain the Private Education Loan Applicant Self-Certification form from your lender or print it and complete Sections 2, 3 and 4. Return the completed form to your lender; do not submit it to the Financial Aid Office.

The Texas Higher Education Coordinating Board offers two loan programs, The College Access Loan and FORWARD Loan, to Texas residents who qualify. Both programs require a student meet eligibility requirements including, but not limited to, confirming Texas state residency, completion or exemption of Selective Service, meeting Satisfactory Academic Progress, and passing a credit check. Full eligibility requirements, instructions to apply, and eligible programs of study (FORWARD Loan) can all be viewed at http://www.hhloans.com/.

Students who borrow from either state loan program are subject to manageable debt limits and should be aware of their maximum borrowing eligibility.

To comply with Texas Family Code, students required to pay child support must self-disclose any arrearages exceeding 30 days. Delinquency may result in loss of eligibility for state-funded grants and loans, including the College Access Loan and the FORWARD Loan. If notified by the State of Texas of delinquency, contact Baylor OneStop for next steps.