Student loans

Loan options and information to meet your financial needs, including federal loans, private loans, SMU's institutional loans and a state loan program.

Please visit our One Big Beautiful Bill Act Updates webpage for changes in the federal student loan programs effective July 1, 2026, starting with the 2026-2027 academic year and forward. 

What types of loans are available at SMU?

There are many loan options available at the federal, state, and private levels. SMU provides specialized options including the Family Assistance Loan for first-year students and the Summer Studies Loan for summer terms.

Which loans should I consider first?

Due to their fixed interest rates and repayment options, SMU recommends considering federal loans prior to exploring private/alternative (credit-based) loan options.

Do I need to submit a FAFSA?

Depends. To be eligible for federal loans you must complete the Free Application for Federal Student Aid (FAFSA) each year at FAFSA.gov. Private and state loans do not require FAFSA submission.

What are the federal loan options?

The Federal Direct Subsidized Loan 

• Undergraduate students only.
• Fixed interest rate of 6.39%* and loan origination fee of 1.057%. **
• Credit approval is not required.
• Interest does not accrue while enrolled and maintaining at least half-time enrollment (six credit hours). Interest begins accumulating and payments become due six months after student leaves school, completes their program of study or drops below half-time enrollment.(referred to as a "grace period").

The Federal Direct Unsubsidized Loan

• Available to undergraduate and graduate/professional students.
• Fixed interest rate of 6.39%* for undergrads and 7.94%* for grad students. Loan origination fee of 1.057%**.
• Credit approval is not required.
• Unlike a Federal Direct Subsidized Loan, interest starts accumulating right away on a Federal Direct Unsubsidized Loan, but payments are not required while students are in-school or during the first six months after a student graduates, withdraws, takes a leave of absence or drops below half-time enrollment (referred to as a "grace period").
• *Effective July 1, 2026, changes to the Direct Unsubsidized Loan borrowing limits and repayment options will be implemented under the One Big Beautiful Bill Act, signed into law July 4, 2025. Please review our One Big Beautiful Bill Act webpage for up-to-date loan information.* 

The Federal Direct PLUS Loans

• Available to parents of undergraduate students (Parent PLUS Loan).
• Available to graduate/professional students (Grad PLUS Loan) who meet the "limited exception" policy under the One Big Beautiful Bill Act.
• Fixed interest rate of 8.94%* and a loan origination fee of 4.228%**.
• Credit approval is required for the borrower and a separate PLUS Loan application must be submitted at StudentAid.gov.
• Interest starts accruing after loan funds have disbursed. Repayment begins 60 days after the full requested loan amount has disbursed to SMU. Borrowers have the option of deferring repayment until six months after student graduates, withdraws, takes leave of absence or drops below half-time enrollment.
• *Effective July 1, 2026, changes to the Direct PLUS Loan borrowing limits, availability and repayment options will be implemented under the One Big Beautiful Bill Act, signed into law July 4, 2025. Please review our One Big Beautiful Bill Act webpage for up-to-date loan information.* 

Get more details about each federal loan option on our Federal direct loans webpage.

*Federal Direct Loan interest rates are subject to change every July 1.
**Federal Direct Loan origination fees are subject to change every October 1.  

What other options should I know about?

Loans from private lenders are available, but may have higher, variable interest rates requiring credit approval. If the borrower does not meet the credit requirements, a credit approved co-signer may be required. Loan terms vary significantly by lender, and we have partnered with ELMSelect to provide resources for comparing multiple loan options.

For information on the percentage of SMU students who borrow, the Cohort Default Rate (CDR) as calculated by the U.S. Dept. of Education, and how the CDR compares with other schools, please go to the U.S. Dept. of Education’s College Scorecard website.