Brief information on the major programs is given below; however, regulations governing these programs may be changed by new laws and policies. The student should, therefore, consult the Office of Student Financial Aid to obtain the latest information.
Federal Pell Grant
The federal government has allocated funds to provide grants of up to $3,750 per year for eligible students. All undergraduate students needing financial assistance and who do not already hold a baccalaureate degree may apply.
Federal Supplemental Educational Opportunity Grants
Federal Supplemental Educational Opportunity Grants provide assistance for undergraduate students who demonstrate financial need. The maximum annual grant at UAB is $2,000.
Federal Work-Study Program
Although most students do not work while enrolled in SHRP, eligible undergraduate and graduate students whose class schedules permit employment may work part-time and earn money to help pay their educational expenses while attending school. Information about on-campus and off-campus jobs that may be available in areas related to the student's educational interests can be obtained in the Office of Student Financial Aid. These awards are based on financial need.
Federal Perkins Loan
The Federal Perkins Loans, available to undergraduate and graduate students on a long-term, low-interest basis, are repayable in monthly installments after graduation. The total amount available for an individual's undergraduate study is $15,000; the total amount of loans made to a graduate student for all years, including any loans received as an undergraduate, may not exceed $30,000. The interest rate is five (5) percent and repayment of the principal and interest begins six months after graduation or withdrawal from school.
Federal Direct Stafford/Ford Loan
The Federal Direct Stafford Loan is a need-based loan with a variable interest rate. Eligible freshmen may borrow up to $2,625 per academic year. Sophomores may borrow up to $3,500 per academic year. Juniors and seniors may borrow up to $5,500 per year, with a maximum of $23,000 allowed for an undergraduate student. Eligible graduate students may borrow up to $8,500 per year. Cumulative undergraduate and graduate loans may not exceed $65,500. Repayment of principal and interest begins six months after graduation or withdrawal from school or after the student's enrollment level drops below half-time.
Federal Direct Unsubsidized Stafford/Ford Loan
This is a non-need based loan with a variable interest rate. The maximum annual loan amount is the Federal Direct Stafford/Ford Loan annual limit minus the student's amount of eligibility for a Federal Direct Stafford/Ford Loan. Interest must be paid while the student is in school or must be capitalized as agreed upon by the borrower and lender. Repayment of the principal and any unpaid (capitalized) interest begins when the student's enrollment drops below half-time.
Federal Direct PLUS Loan
This is a non-need based loan with a variable interest rate. Repayment of the principal and interest begins immediately after the loan has been disbursed. A parent can borrow up to the student's cost of education minus other aid.
Additional Federal Direct Unsubsidized Stafford Loan
Independent students, or dependent students whose parents cannot borrow under the Federal Direct PLUS Loan Program, may borrow an additional amount as additional unsubsidized eligibility. Amounts are based on class level ($4,000 for freshmen and sophomores, $5,000 for juniors and seniors, and $10,000 for graduate students).