Student loans

Get important information about funding to meet your needs, including federal loans, private loans, SMU-specific programs and other options.

What types of loans are available at SMU?

There are many loan options available at the federal, state, and private levels. Federal loans offer the most flexible terms. SMU provides specialized options including the Family Assistance Loan for first-year students and the Summer Studies Loan for summer terms, while private/alternative loans and post-graduation consolidation loans round out the available choices.

For details on loan options, click the links in each section below.

Which loans should I consider first?

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

Do I need to submit a FAFSA?

Yes. To be eligible for federal and state financial aid, including loan programs, you must complete the Free Application for Federal Student Aid (FAFSA) each year at FAFSA.gov.

What are the federal loan options?

• The Federal Direct Subsidized Loan is available to students with demonstrated financial need and offers a fixed interest rate of 6.39%* for undergrads, has an origination fee of 1.057%**, and a credit check is not required. The Federal Direct Subsidized Loan does not gain interest as long as you are in-school and maintain at least half-time enrollment (6 credit hours). Interest begins accumulating and payments become due six months after a student leaves school or drops below half-time enrollment (referred to as a "grace period").
• The Federal Direct Unsubsidized Loan is available to all students regardless of financial need and offers a fixed interest rate of 6.39%* for undergrads and 7.94%* for grad students. This loan also has an origination fee of 1.057%**, and a credit check 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 leaves school or drops below half-time enrollment (referred to as a "grace period").
• The Federal Direct PLUS Loan is available to graduate students and parents of undergraduate students, offers a fixed interest rate of 8.94%* and has an origination fee of 4.228%**. This loan does require a credit check, so in addition to the FAFSA, a separate PLUS Application must be submitted at StudentAid.gov. The maximum amount that may be requested is the difference between the student's Cost of Attendance and the total of all other financial aid received. This loan starts accruing interest right away, and repayment begins 60 days after the loan has fully paid, though it is possible to defer payments until six months after the student leaves school or drops below half-time enrollment. Borrowers will need to contact their loan servicer for more information on repayment and deferment options.

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, though they typically have higher, variable interest rates and require credit checks or cosigners. Terms vary significantly by lender, and we have partnered with ELMSelect to provide resources for comparing multiple loan options if a student needs to go this route.

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.