Which loans can help pay for my student's off-campus housing at UT Austin?

Compare education loans for off-campus housing

How much can the student borrow?

For a full-time dependent undergraduate, the combined Direct Subsidized and Unsubsidized annual maximum is $5,500 in year one, $6,500 in year two and $7,500 in year three and beyond, with a $31,000 undergraduate aggregate limit. Only part can be subsidized. These are education-wide limits, not extra housing allowances. Independent students and some students whose parents cannot obtain PLUS have different limits. Less-than-full-time enrollment can reduce annual eligibility; confirm the actual offer with UT.

What changed for Parent PLUS in 2026?

For borrowers outside the limited exception, Parent PLUS borrowing is capped at $20,000 per academic year and $65,000 per child across parents, starting July 1, 2026. A qualifying prior enrollment and borrowing history may allow the previous cost-of-attendance-minus-other-aid limit for a limited period. Ask Texas One Stop to confirm which rules apply. Reaching the PLUS cap alone does not qualify the student for additional unsubsidized borrowing.

What are the current federal interest rates?

For loans first disbursed July 1, 2026 through June 30, 2027, undergraduate Direct Subsidized and Unsubsidized Loans carry a fixed 6.52% interest rate; Parent PLUS carries a fixed 9.07% rate. Loan fees also affect the amount received. Compare the full borrowing cost and repayment terms before accepting an offer.

How much of the UT budget is for housing?

UT's 2026–27 full-time undergraduate estimate includes $15,420–$15,580 for housing and food across the fall and spring semesters for students living on or off campus. This includes food and is a planning estimate, not a rent quote or guaranteed loan award. Total aid cannot exceed the student's approved cost of attendance. Ask UT to confirm the student's off-campus budget and any remaining eligibility.

When will money be available for rent?

UT normally releases aid on a rolling basis about a week before classes begin. University charges are paid first; remaining eligible funds are refunded. Direct-deposit refunds normally reach the bank in two to three business days. Parent PLUS remaining funds go to the parent unless the parent authorizes payment to the student. Private-loan funding can take several weeks. Compare the confirmed refund date with the deposit and first-rent deadlines before signing a lease.

Your next steps

1. Have the student submit the FAFSA and review the Financial tab in UT's My Financial Aid portal. Check grants and scholarships before deciding what to borrow.
2. Ask Texas One Stop at 512-232-6988 to confirm the off-campus cost of attendance, remaining loan eligibility and expected refund date. The student must authorize UT to discuss their aid with a parent.
3. Accept only the needed student-loan amount and complete the outstanding portal requirements. If using Parent PLUS, the parent applies through StudentAid.gov and completes the required promissory note.
4. Build the housing budget using confirmed available funds, rent, food and move-in costs. Then compare nearby homes or ask the local Realtor for help finding housing within that budget.