The University of West Alabama (UWA) participates in a variety of loan programs to help students and their families finance education. These include Federal Direct Loans, Parent PLUS Loans, Graduate PLUS Loans, and Private Loans. Below, you’ll find detailed information about each loan type and how to apply.

Federal Direct Student Loans

UWA participates in the Federal Direct Loan Program, which offers long-term, low-interest Subsidized and Unsubsidized loans for students and their families. For more information, visit Federal Direct Loans.

Subsidized Loans

Subsidized loans are awarded based on financial need. Interest does not accrue while you are enrolled at least half-time or during grace periods. Repayment begins six months after graduation or dropping below half-time enrollment.

Unsubsidized Loans

Unsubsidized loans are not based on financial need, and interest begins accruing immediately after funds are disbursed. Repayment starts six months after graduation or dropping below half-time enrollment.

Annual Loan Limits

Annual Loan Limits for Dependent Students
  • Freshmen: $5,500 (maximum $3,500 subsidized)
  • Sophomores: $6,500 (maximum $4,500 subsidized)
  • Juniors & Seniors: $7,500 (maximum $5,500 subsidized)
Annual Loan Limits for Independent Students
  • Freshmen: $9,500 (maximum $3,500 subsidized)
  • Sophomores: $10,500 (maximum $4,500 subsidized)
  • Juniors & Seniors: $12,500 (maximum $5,500 subsidized)
  • Graduate Students: $20,500 (maximum $8,500 subsidized)
Aggregate (Total) Loan Limits
  • Dependent undergraduates: $31,000 (maximum $23,000 subsidized)
  • Independent undergraduates: $57,500 (maximum $23,000 subsidized)
  • Graduate students: $138,500 (maximum $65,500 subsidized)

Direct Parent PLUS Loans

Parents of dependent students may qualify for a Direct Parent PLUS Loan to help cover educational expenses. To be eligible, the student must:

  • Be enrolled at least half-time at UWA
  • Maintain Satisfactory Academic Progress
  • Meet all other eligibility criteria set by the U.S. Department of Education

The maximum loan amount a parent can borrow is the UWA cost of attendance, as determined by the Financial Aid Center, minus any other financial aid the student receives (including scholarships, grants, loans, and waivers).

To apply, parents must complete the PLUS request process online at studentaid.gov.

Direct PLUS Loans for Graduate Students

Graduate students may qualify for a Direct PLUS Loan to help cover educational expenses. To be eligible, students must:

  • Be enrolled at least half-time at UWA
  • Maintain Satisfactory Academic Progress
  • Meet all other eligibility criteria set by the U.S. Department of Education

The maximum loan amount a student can borrow is the UWA cost of attendance, as determined by the Financial Aid Center, minus any other financial aid received (including scholarships, grants, loans, and waivers).

To apply, students must complete the PLUS request process online at studentaid.gov.

Private Student Loans

Private student loans can help bridge the gap for students who need additional financial assistance beyond federal aid. However, students are encouraged to first explore Federal Direct Loans, and parents should consider Federal Direct PLUS Loans, as these federal programs offer capped interest rates and unique benefits, such as loan consolidation, service cancellations, and military repayment options—features often not available with private loans.

If additional funding is required, several private lenders offer loans to cover educational expenses. Loan approval is based on creditworthiness and repayment ability, meaning students may need a creditworthy cosigner to qualify. Each lender has its own interest rates, fees, repayment terms, and approval criteria. To secure the most favorable rates and terms, students are advised to apply with a cosigner who has a strong credit history.

For more information on private loan options and lenders, visit ELM Select.

How to Apply for a Private Loan

Below is a list of private lenders that UWA students have successfully worked with. When applying, students must also complete a Federal Private Education Loan Applicant Self-Certification Form and submit it to their lender.

The University of West Alabama does not endorse or recommend any specific lender. This list is provided as a resource based on lenders previously used by UWA students. Students are not obligated to use these lenders.

Important Loan Application Timing

Most lenders conduct a credit check that expires in 90-120 days, so students should not apply more than three months before the term starts. However, due to processing time, students should apply as early as possible within that three-month window to ensure funds are available for tuition and fees.

Recommended Application Deadlines:

  • June 1st for Fall Term
  • November 1st for Spring Term
  • March 1st for Summer Term

Disbursements & Refunds

Private loan disbursements are typically sent via Electronic Funds Transfer (EFT) directly to UWA. Once all university fees are covered, any excess funds will be mailed to the student’s local mailing address or direct deposited into their bank account.

Refund Considerations:

  • If you are not registered for Term 1 and Term 2 at the start of a full semester, retain your refund to help cover Term 2 expenses.
  • If you withdraw from UWA, you may be required to return a portion of the refunded loan in accordance with federal and institutional refund policies.

For the best financial outcome, plan ahead and apply within the appropriate timeframe!

Loan Application Requirements

Entrance Counseling

Students must complete Entrance Counseling before funds can be disbursed. Once completed, UWA will be notified electronically within 48 hours.

Master Promissory Note (MPN)

An MPN must be e-signed using your FSA ID at MPN Signing. UWA will be notified electronically within 24–48 hours.

Exit Counseling

Students who graduate or drop below half-time enrollment during a term are required to complete a Direct Loan Exit Interview. This process provides important information about loan repayment responsibilities. To complete the exit interview, students must use their FSA ID Number, as it grants access to personal loan details.

Once the student loan grace period ends, the Stafford Loan Lender and/or Direct Loans will send a repayment schedule outlining:

  • Monthly payment amounts
  • The total number of months required for repayment

To ensure you receive important repayment information, always notify your lender of any address changes.

Loan Management Tips

Students are encouraged to borrow only the funds necessary to cover their educational expenses. If a loan is approved for more than the desired amount, students have the option to reduce the loan amount by:

  • Emailing the Financial Aid Center at financialaid@uwa.edu
  • Contacting their lender upon receiving the lender’s disclosure statement

Additionally, we strongly encourage students who have borrowed private loans at other institutions to retain their previous lenders whenever possible. This helps avoid multiple loan repayments in the future, simplifying the repayment process and potentially reducing overall financial burden.

Making informed borrowing decisions can help minimize student debt and ensure long-term financial stability.