Janice Lozano
The University of Alabama offers various financial aid options for students, including federal aid, loans, and work-study programs. The specific timing of student aid disbursements may vary depending on the type of aid and the student's individual circumstances. Generally, after submitting a FAFSA application, students will receive a notification regarding their financial aid offer, which they can accept or decline. The University of Alabama participates in the William D. Ford Federal Direct Student Loan program, offering both subsidized and unsubsidized loans. For example, the first financial aid disbursement for the spring of 2025 is scheduled for January 2, 2025. Students can also set up direct deposit to receive their financial aid funds directly in their bank accounts.
| Characteristics | Values |
|---|---|
| Date of first financial aid disbursement for Spring 2025 | 2nd January 2025 |
| Types of loans disbursed | Federal Direct Subsidized Stafford Loan, Federal Direct Unsubsidized Stafford Loan, PLUS program for parents of dependent students, Federal Work-Study Program |
| Requirements for loan disbursement | Students must complete the FAFSA and monitor their myBama account and Crimson email for updates. New borrowers must complete a Master Promissory Note and Entrance Loan Counseling at studentaid.gov. |
| Interest rates | Subsidized loans: no interest charged while enrolled; Unsubsidized loans: interest accrues as soon as funds are disbursed |
| Repayment | Subsidized loans: repayment begins 6 months after graduation or when a student is no longer enrolled at least half-time; PLUS loans: repayment begins within 60 days after disbursement or parents can request a deferment; Federal Work-Study Program: students are paid every two weeks for hours worked |
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What You'll Learn
Federal Direct Subsidized Stafford Loan program
The University of Alabama participates in the William D. Ford Federal Direct Student Loan program. The Federal Direct Subsidized Stafford Loan program is a need-based loan program. To be eligible, students must be enrolled for at least half the time, or 6 hours per semester.
Interest on the Federal Direct Subsidized Stafford Loan does not accrue while the student is enrolled for at least half the time. Repayment of the loan does not begin until six months after graduation or when a student is no longer enrolled at least half-time.
The Federal Direct Subsidized Stafford Loan is awarded to undergraduate students who demonstrate financial need. The loan is disbursed through the William D. Ford Federal Direct Student Loan program, and the University awards the loan. The maximum annual Federal Direct Subsidized Stafford Loan award amount is dependent on eligibility.
To apply for the Federal Direct Subsidized Stafford Loan, students must complete the FAFSA (Free Application for Federal Student Aid). The FAFSA processor will analyze the information provided and calculate the Student Aid Index (SAI) using a formula established by Congress. The results of the application will be sent to the University of Alabama and the applicant within 3-5 business days. Once the FAFSA is received, it will be processed for a federal aid offer, or further information may be requested.
After receiving an award notification, students must accept or decline the award offer. If accepted, first-time borrowers must complete a Master Promissory Note and Entrance Loan Counseling online at studentaid.gov.
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Federal Direct Unsubsidized Stafford Loan program
The University of Alabama participates in the William D. Ford Federal Direct Student Loan program. The Federal Direct Unsubsidized Stafford Loan program is not based on financial need. Interest on an unsubsidized loan begins accruing as soon as the loan funds are disbursed. To be considered for the Unsubsidized Loan, students must apply for federal financial aid.
The Federal Direct Unsubsidized Stafford Loan program is available to undergraduate and graduate students. There is no requirement to demonstrate financial need. The interest is capitalized, meaning that you pay interest on any interest that has already accrued. One way to minimize how much interest accrues is to pay the interest as it accumulates.
To apply for federal aid, you must complete the FAFSA (Free Application for Federal Student Aid). The FAFSA processor will analyze your information and, using a formula established into law by Congress, calculate your Student Aid Index (SAI). The results of your application will be sent to UA and to you in the form of a FAFSA Submission Summary (FSS) by mail or email within 3-5 business days. This report details the information that you provided and informs you of any corrections that are needed to complete the application. Carefully review the FSS to make sure that all the information is accurate, as the University of Alabama will receive the same information. Once your FAFSA is received, it will be processed for a federal aid offer, or you may be asked to provide additional information or documentation. It is important to monitor your myBama account and check your Crimson email for updates.
After you apply for federal aid, you may be offered either a subsidized loan, an unsubsidized loan, or a combination of both. The primary difference between the two is the interest rate and when the interest begins to accrue. Subsidized Loans are awarded on the basis of financial need. You will not be charged any interest while the loan is in deferment status, such as while you are enrolled, as the federal government subsidizes or pays the interest.
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PLUS program for parents
The University of Alabama disburses student aid in the form of loans, grants, and the Federal Work-Study Program. The types of loans disbursed include the Federal Direct Subsidized Stafford Loan, the Federal Direct Unsubsidized Stafford Loan, and the Parent PLUS Loan.
The PLUS program is available to parents of dependent students enrolled at The University of Alabama. The loan is made in the parent's name to cover the educational expenses of their dependent child. To be eligible, the parent must be the biological, adoptive, or, in some cases, step-parent of the student. The student must be enrolled for at least six hours at the university and meet the general eligibility requirements for Federal Student Aid programs. They must also meet the university's Satisfactory Academic Progress Standard.
The interest rate for the PLUS loan is variable and adjusted annually. Repayment of the principal and interest begins within 60 days after the loan is disbursed, or parents may request a deferment when applying. The amount that can be borrowed is the difference between the Cost of Attendance and the student's other federal aid and resources.
To apply for the PLUS loan, parents must complete the Free Application for Federal Student Aid (FAFSA) and submit it to the University of Alabama for verification. If approved, the parent borrower must sign a Parent PLUS Master Promissory Note at studentaid.gov using their Federal FSA ID. If credit for the PLUS loan is denied, parents can seek an override of the credit decision through an appeal or by obtaining paperwork for an eligible endorser from Federal Student Aid.
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Federal Work-Study Program
The University of Alabama offers several financial aid options to its students, including the Federal Work-Study Program. This program provides students with the opportunity to work and earn money to help pay for their educational expenses.
Eligibility
Eligibility for the Federal Work-Study Program is based on a student's financial need, as determined by the Free Application for Federal Student Aid (FAFSA). The FAFSA processor will analyze a student's information and calculate their Student Aid Index (SAI), which is used to determine eligibility for federal student aid. The University of Alabama will receive the results of the FAFSA and make a federal aid offer or request additional information or documentation.
Types of Jobs
The Federal Work-Study Program offers a variety of on- and off-campus job opportunities. On-campus jobs are available in most departments, with over 800 different positions in a range of settings. Off-campus jobs are typically categorized as community service positions, aimed at improving the quality of life for community residents, particularly low-income individuals. Students can also participate in the America Reads/America Counts Programs, which provide tutoring to area children in need of help in reading or math.
Work Hours and Pay
Students in the Federal Work-Study Program can work an average of 12 to 15 hours per week, with new freshman/transfer students working up to 15 hours and returning/continuing students working up to 20 hours. Students are paid every two weeks, with on-campus jobs paying a minimum of $10 per hour and the America Reads and Counts Tutoring Program paying $12 per hour.
Applying for Jobs
Students who are awarded Federal Work-Study and are interested in on-campus jobs will be provided with a listing of openings. A listing of Federal Work-Study positions, including community service positions, is made available to students who complete the University's Federal Work-Study orientation. Students can also explore job opportunities through the Job Location and Development (JLD) program, which locates and develops off-campus job opportunities.
Receiving Payments
Earnings from the Federal Work-Study Program are paid directly to the student and are not applied to the student's university bill. Students can authorize the direct deposit of their earnings into their bank account through BlazerNET, ensuring that funds are transferred directly to their account.
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Master Promissory Note
At the University of Alabama, students who are first-time borrowers and have received a student loan must complete a Master Promissory Note and Entrance Loan Counseling online at studentaid.gov. A Master Promissory Note (MPN) is a legal document in which you promise to repay your loan(s), including any fees or costs, to the US Department of Education. It also explains the terms and conditions of your loan(s).
The MPN is a commitment to repay all loans issued under the William D. Ford Federal Direct Loan (Direct Loan) Program. By signing the MPN, you agree to the terms of the loan(s) you receive under the Direct Loan Program. The Master Promissory Note is a legally binding agreement between the borrower and the US Department of Education. The borrower agrees to repay the loan according to all terms and conditions of the loan(s).
The MPN is a way for the University of Alabama to ensure that students understand the terms and conditions of their loan(s) and agree to repay them. It is a requirement for receiving any federal student loan, and it is important to understand the commitment you are making when you sign it. The MPN will explain when your loan payments need to begin, which is usually after you graduate or drop below half-time enrolment. It will also outline the interest rate on your loan(s) and any fees that may be charged.
In addition to students, parents may also be required to sign a Master Promissory Note for certain loans. For example, if a parent is borrowing through the Parent PLUS Loan program, they must sign a Parent PLUS Master Promissory Note at studentaid.gov, using their Federal FSA ID. This is a similar process to the one that student borrowers go through.
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Frequently asked questions
You can apply for student aid at the University of Alabama by completing the FAFSA (Free Application for Federal Student Aid). You will be required to answer questions about your family's income and savings. You will receive your application results in the form of a FAFSA Submission Summary (FSS) within 3-5 business days.
The University of Alabama offers subsidized and unsubsidized loans, as well as grants and the Federal Work-Study Program. The PLUS program is also available to parents of dependent students.
Student aid disbursement dates vary. For example, the first financial aid disbursement for Spring 2025 will be on January 2, 2025.
Students are recommended to enroll in direct deposit to authorize the electronic transfer of funds to their bank account.
