UAH

Loans

Loans

Although it is sometimes necessary to borrow money to finance education, caution is advised. Generally, a student should not rely primarily on loans and is advised not to borrow more than what is needed to meet expenses.

Loan Types

Federal Direct Subsidized Stafford

Federal Direct Unsubsidized Stafford

Federal Direct Parent PLUS 

Federal Direct Grad PLUS 

Loan FAQs

Understanding Loan Limits


News and Updates

Federal Loan Information

Federal Direct loans are low-interest loans for students and parents to help pay for the cost of a student's education after high school.  The lender is the U.S. Department of Education, though most of the contact will be with your loan servicer.

With Direct  Loans, you

  • Borrow directly from the federal government and have a single contact - your loan servicer - for everything related to repayment, even if you receive Direct Loans at different schools
  • Have online access to your Direct Loan account information via your school's website
  • Can choose from several repayment plans, and you can switch repayment plans if your needs change
 

Annual Maximum Loan Limits

 Grade Level

Dependent Student

Independent Student

Freshman: 0 - 32 credit hours

$5,500 (no more than $3,500 subsidized)

$9,500 (no more than $3,500 subsidized)

Sophomore: 33 - 63 credit hours

$6,500 (no more than $4,500 subsidized)

$10,500 (no more than $4,500 subsidized)

Junior/Senior: 64+ credit hours

$7,500 (no more than $5,500 subsidized)

$12,500 (no more than $5,500 subsidized)

Graduate Professional

N/A

$20,500

 

Aggregate Maximum Loan Limits

Status

Amount

Dependent Student

$31,000 (no more than $23,000 subsidized)

Independent Student

$57,500 (no more than $23,000 subsidized)

Graduate Professional

$138,500

The higher maximum loan for independent students reflects a combination of Federal Direct Subsidized and Unsubsidized Stafford Loans. The annual maximum Subsidized Loan Stafford eligibility is limited to the dependent eligibility for each class level.

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Federal Direct Subsidized Stafford Loan

A Federal Direct Subsidized Stafford Loan is awarded on the basis of the student's financial need and other specific federal requirements. The federal government does not charge interest on these loans while borrowers are enrolled at least half-time.

  • A federal student loan allows students and their parents to borrow money to help pay for college through loan programs supported by the federal government. These loans usually have low interest rates and offer attractive repayment terms, benefits, and options. Generally, repayment of a federal loan does not begin until after the student leaves school

  • Graduate students are no longer eligible for Federal Subsidized loans (effective July 1, 2012)

  • As a result of legislation enacted in July 2012, eligibility for the Direct Loan interest subsidy (lack of interest accrual while in school) will be limited for new borrowers on or after July 1, 2013. The law restricts the period of time for which a borrower may receive subsidized loans, in the aggregate, to 150 percent of the published length of the student's current educational program. Once the student reaches that limit, he or she may borrow only unsubsidized loans, and interest begins to accrue on the student's outstanding subsidized loan. 


Apply for a Federal Direct Subsidized Loan

To apply for a Federal Direct Subsidized Loan, you must complete the 
FAFSA. To be eligible, you must be enrolled for at least six hours per semester. If you are eligible for a Federal Direct Subsidized Loan, it will be included on your financial aid award.

Loan Requirements

  1. Accept Terms & Conditions
  2. Accept Loan Offer
  3. Complete Master Promissory Note (MPN)
  4. Complete Entrance Counseling

Both Entrance Counseling and  the Master Promissory Note only need to be completed once and are good for ten years.


Adjust/Cancel your Loan

  • Go to  your Student Banner Account.  Enter Secure Area using your UAH user ID and password. If you do not know your user ID and password, contact Charger Central at 1-800-UAH-CALL.
  • Select financial aid/award/award for aid year/201x-201x /Accept Award Offer tab
  • Click on the the Loan Adjustment option

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Federal Direct Unsubsidized Stafford Loan

A Federal Direct Unsubsidized Stafford Loan is not based on the student's financial need, but students must also meet specific federal requirements. Interest is charged throughout the life of the loan. The borrower may choose to pay the interest charged on the loan or allow the interest to be capitalized (added to the loan principal).

  • Federal Unsubsidized loans provide low interest rates and are available to all students regardless of financial need (although the FAFSA still must be filed). A credit check is not required to receive these loans

  • The student is responsible for the interest, which may be paid while the student is in school, or accrued and then added to the principal balance when the student enters repayment, which occurs six months after the student is no longer enrolled in school at least half time.


Apply for a Federal Direct unsubsidized loan

To apply for a Federal Direct Unsubsidized Loan, you must complete the FAFSA. To be eligible, you must be enrolled for at least six hours per semester. If you are eligible for a Federal Direct Unsubsidized Loan, it will be included on your financial aid award.

Loan Requirements

  1. Accept Terms & Conditions
  2. Accept Loan Offer
  3. Complete Master Promissory Note (MPN)
  4. Complete Entrance Counseling 

Both Entrance Counseling and  the Master Promissory Note only need to be completed once and are good for ten years.


Adjust/Cancel your Loan

  • Go to  your Student Banner Account.  Enter Secure Area using your UAH user ID and password. If you do not know your user ID and password, contact Charger Central at 1-800-UAH-CALL.
  • Select financial aid/award/award for aid year/201x-201x /Accept Award Offer tab
  • Click on the the Loan Adjustment option



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Federal Direct Parent PLUS Loan

Parent Loans for Undergraduate Students (Federal Direct Parent PLUS) are federal loans that parents with good credit histories may borrow to help pay the educational expenses of a dependent undergraduate student enrolled in at least 6 credit hours per semester.
A parent may borrow up to the total of the estimated cost of attendance. The interest is charged on the loan from the time the loan funds are disbursed until it is paid in full.


  • Federal Parent PLUS Loan are low interest loans that parents can obtain to help pay the cost of education for their children. These loans are available for parents on behalf of the student once the FAFSA and the financial aid file have been completed

  • PLUS loans require a credit check and, in some instances, an eligible co-signer. Repayment of PLUS loans begins following the final disbursement for the year


2 Steps to applying for the Parent PLUS Loan

  1. PLUS Loan Application (After logging in, click on "Complete PLUS Request Process").  The e-sign process does require that the parent borrower have a federal PIN, which is the PIN you used to sign the FAFSA. If you are a biological parent whose information is not on the FAFSA, you should apply for a federal PIN.

  1. Master Promissory Note (valid up to ten years)

 

ELIGIBILITY

Both the parent borrower and the student must:

 

The parent borrower must:

  • Be a biological parent
  • Be an adoptive parent (not a legal guardian)
  • Be a step-parent, eligible only if income and assets were included on FAFSA to calculate student's   
  • Expected Family Contribution (EFC)

 

The processed FAFSA application and a completed award package must be posted on the student account for the award year in which the student is enrolled before the parent completes the PLUS Request Process

You will receive information on whether the parent was approved or denied after successfully completing the application.  If you are approved, please complete the MPN.

Please allow two weeks for our office to process and post to the student award once you have received an approval.  

The Office of Student Financial Services will disburse funds to the student's account as long as the student meets eligibility requirements.

If the disbursed amount exceeds charges on the student's account, a refund check is issued to either the parent or the student based on the parent’s choice when the completing the Parent PLUS application.


LOAN AMOUNTS  

Parent borrowers may borrow a PLUS loan for an amount up to the student's cost of attendance minus other financial aid/scholarships/resources received. It is recommended that you borrow the minimum amount needed to cover the student's educational costs. 


INTEREST, LOAN FEES, REPAYMENT

Federal Direct PLUS Loans interest is charged from the date of the first disbursement until the loan is paid in full.

  • Repayment begins within 60 days after the loan has fully disbursed.  An origination fee of 4.288% is deducted from this loan at disbursement. Federal Direct PLUS Loan information is also available at http://studentaid.ed.gov

ADVERSE CREDIT HISTORY

If your Plus Loan is denied by the U.S. Department of Education’s Direct Loan Servicing Center due to adverse credit history and you indicated on the Parent PLUS Authorization Form that you will have an endorser, you have 14 days to obtain an approved endorser. After 14 days, if you have not obtained an approved endorser your PLUS loan application will be terminated. If the PLUS denial is reversed due to the endorser’s approved credit, please contact our office.

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Federal Direct Graduate PLUS

Graduate PLUS Loans are federal loans that graduate students with good credit histories may borrow to help pay educational expenses. Recipients must be enrolled in at least six credit hours per semester with the exception of three credit hours during the summer term.

With a Graduate PLUS Loan, graduate students may borrow up to the full cost of attendance less other financial aid. There is a 4.288% loan origination fee deducted from the loan by the U.S. Department of Education.

  • Federal Graduate Plus Loans are low interest loans that graduate students may obtain to help pay for their own education. PLUS loans require a credit check and, in some instances, an eligible co-signer

  • Repayment of PLUS loans begins following the final disbursement for the year. Graduate students may be able to defer repayment of their PLUS loans until after the student is no longer enrolled in school at least half time, although interest will continue to accrue

  • Students must also complete a separate Entrance Counseling and Master Promissory Note


APPLY (Our office recommends that your Federal Loans be exhausted prior to applying for a Grad Plus Loan)

1.  Complete the online application at www.studentloans.gov  OR

• Log in to banner self-service 

• Enter Secure Area using your user ID (A-number) / UAH pin number

•Select financial aid/award/Grad Plus Application  

2. Complete Master Promissory Note for Grad Plus

3. Complete Entrance Counselingfor Grad Plus


Federal Direct Graduate Plus Loan Processing 

The Direct Loan Processor will notify the student borrower of the results of the credit check. The borrower cannot have been 90 days or more delinquent on the repayment of any debt or the subject of a default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment or write-off of a Title IV debt during the last five years. If credit is approved, loan funds will be posted to the student's school award.

Receipt of Funds

The funds will be applied to tuition, fees, and other university charges. If the Federal Direct Graduate Plus disbursement generates a refund after University charges are paid, the excess amount will be applied to the students account and refunded via Direct Deposit though the 
Bursar’s Office.

Denied

Credit approval is valid for 90 days. Your credit is evaluated every time you request a new loan, unless you have had a credit decision within the preceding 90 days.

If you think you may have one or more of the items outlined in the credit requirements listed above, you may want to obtain your credit report in advance of applying for a Grad PLUS Loan. You should work to correct negative items on your credit report as soon as possible.


Credit denial options include:

  • Apply for the loan with an endorser, which is a credit-worthy loan cosigner

  • Correct any invalid information on your credit report and reapply

  • If a Federal Direct Graduate PLUS Loan Application is denied, you will need to contact Direct Loans at 1.800.848.0979 to add a cosigner



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Loan FAQ'S

General:

Loans require half-time enrollment.

Exceptions apply for graduate student enrollment during the summer term when three credit hours is considered half-time enrollment.

The U.S. Department of Education contracts with multiple servicers to manage Direct Loans. These servicers are responsible for the billing, collection and processing of all deferments, forbearances and cancellations.

UAH processes and disburses loan funds to your UAH account. You can accept, reduce, cancel or adjust your loans on your Student Self-Service account.

Locate the servicer of your loan at www.nslds.ed.gov.

Complete a FAFSA each year you need aid.

Students have a one-time six month grace period and repayment begins six months after graduation or six months after the student ceases half-time enrollment.

Interest on Subsidized Loans are paid by the government while the student is in school.

Unsubsidized Loans accrue interest once it has disbursed and is paid by the borrower.

 

Limits:

Dependent Students have a maximum loan limit of $31,000 while obtaining their undergraduate degree.

Independent Students have a maximum loan limit of $57,500 while obtaining their undergraduate degree.

 

Requirements:

A Master Promissory Note (MPN) is a promise to repay the loan and must be completed before disbursement will occur.

Entrance Counseling is a tutorial and quiz that will explain your rights and responsibilities as a Direct Loan borrower and is required before a loan will disburse.

The MPN and Entrance Counseling are valid for ten years.

Exit Counseling is required and will explain your rights and responsibilities as a Direct Loan borrower. Direct Loan Exit Counseling is required when you drop below half-time student status or cease to be a student at UAH.

By accepting your financial awards, you are agreeing to give UAH permissions to use the funds to pay any direct institutional charges incurred incidental to your enrollment.

Outside assistance that pays tuition must be reported on the Outside Resource Form or your aid maybe reduced or cancelled.


The Federal Student Aid Ombudsman Group of the U.S. Department of Education is dedicated to helping resolve disputes related to Direct Loans, 
Federal Family Education Loan (FFEL) Program loans, Guaranteed Student Loans, and Perkins Loans. The Ombudsman Group is a neutral, informal, and confidential resource to help resolve disputes about your federal student loans.

 

Identify Your Loan Problem:

Use the following list of common problems to help you identify exactly what type of problem you are having with your loan and what you should do to prepare to solve it.

 

IF: You believe you’ve made all of your payments on time, but it looks like your account balance might be wrong.

THEN: Check your payment history, gather the documents necessary to show what payments you’ve made, and contact your loan servicer to find out how to submit the proof.

 

IF: You believe you’ve made all of your payments on time, but your loan is in default.

THEN: Gather the documents necessary to prove that your payments were made on time, and contact your loan servicer to find out how to submit your proof.

 

IF: You believe your loan servicer has reported inaccurate information to the credit bureaus.

THEN: File a consumer dispute with the bureaus. Contact the three national credit bureaus in writing to tell them what information you believe is inaccurate:

 

IF: You completed bankruptcy but are still getting loan repayment bills.

THEN: It is unlikely that you are eligible to have your loan discharged through bankruptcy. If you filed for bankruptcy after October 7, 1998, your loan cannot automatically be discharged.

 

IF: You are not the person listed in the loan records.

THEN: You will need to provide proof of your identity. Contact your loan servicer to find out what documents are needed and how you should present them.

 

Contact Your Loan Servicer

You’ve identified your problem and are ready to contact your loan servicer. To deal effectively with your loan servicer, keep in mind the tips below.  Locate the servicer of your loan at http://www.nslds.ed.gov

Keep careful notes of all conversations you have. Follow up in writing so you have a physical record of what has been said and done.

  • Request a copy of your customer service history; some loan servicers make available copies of the notes that customer service representatives make on your account.

  • When you speak with someone on the phone, make a note of whom you speak to and when, and what was said. When you use mail, keep a copy of your letter and of any replies you receive.

  • Save the originals of all receipts, bills, letters, and e-mails regarding your account. Provide copies of the originals if you are asked for them. Send letters via certified mail, with a return receipt requested.

  • Don’t let the emotion of the moment get to you. If you are not getting a proper response to your questions, calmly explain again what information or resolution you are seeking.

  • Be polite and courteous, but don't be afraid to give the detail of any incident and to state your concerns. Write down the facts in the order they took place and stick to what is relevant. Include important details such as your account number at the top of your letter.

  • Ask for a response in a reasonable time, and be sure to tell the customer service representative how you can be reached.

 

Problem not solved?  If you are still not satisfied, you might wish to contact the Federal Student Aid Ombudsman Group to help you resolve your dispute. Contact the Ombudsman Group only as a last resort; and first, be sure to be prepared before seeking help.

 

Via telephone:

877-557-2575

Via fax:

202-275-0549

Via mail

 

 

U. S. Department of Education

FSA Ombudsman Group
830 First Street, N. E., Mail Stop 5144
Washington, D.C. 20202-5144

 

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What If...

What if I have to withdraw from all my classes in the midst of a term? Will I have to repay any or all of my aid?

The student would be required to repay a portion of any federal aid they receive during the term. A percentage of the completed semester is calculated and the percentage of aid earned is determined; please see the section on policy for more information.

What if I only have to withdraw (drop) one class?

You would not owe funds back immediately; however, it could affect your Satisfactory Academic Progress and potentially your eligibility for future aid. See the section on Satisfactory Academic Progress.

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News...

Origination Fee Change:

As of October 1, 2013, the sequester increases the origination fees charged to Direct Loan borrowers beyond last year's increases.  However, taking into account all of the underlying circumstances, including operational requirements, the new loan fee percentages will apply only with regard to loans where the first disbursement is made on or after December 1, 2013.  

The new loan fees are 1.072 percent for Direct Subsidized Loans and Direct Unsubsidized Loans and

4.288 percent for Direct PLUS Loans (both parent and graduate student PLUS Loans).

 

Time Limitation on Subsidized Loans

 

Please note: For all new borrowers who receive a loan on or after July 1, 2013 a 150% limitation is in effect. This means a student who is eligible for a subsidized loan will reach their subsidized limit at 150% of a program’s length of study. Once a student has reached their 150% limitation, their interest subsidy loan limit will end on all outstanding loans that were disbursed after July 1, 2013, and interest will begin to accrue. Students are therefore encouraged to complete undergraduate study on a timely basis.

 

WE'RE HERE TO HELP!

If you have questions about loans email or call 256.824.6241.

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