Direct Student Loans Federal Direct LoansThe University of West Alabama participates in the Federal Direct Loan Programs. The Direct Loan program provides long term low interest subsidized and unsubsidized loans for our students and their parents. Subsidized LoansSubsidized loans are based on established financial need as well as annual and aggregate loan limits. Interest on this loan does not accrue during periods of enrollment and grace periods. Both interest accrual and repayment begins six months after graduation or when a student is no longer enrolled at least half-time. Unsubsidized LoansUnsubsidized loans are based on annual and aggregate loan limits and are not based on financial need. Interest on this loan begins to accrue upon disbursement of the funds. Repayment begins six months after graduation or when a student is no longer enrolled at least half-time. Half-Time EnrollmentHalf-time enrollment is defined as: o Campus - 6 undergraduate hours or 3 graduate hours o Online – 3 undergraduate or graduate hours Entrance InterviewStudents must complete Entrance Counseling requirement before funds can be disbursed. Please be sure to enter your information completely and accurately. The Financial Aid Center will be notified electronically in 24-48 hours that you have completed this requirement. Esign MPNStudent must e-sign a Master Promissory Note (MPN) prior to disbursement. The student’s PIN Number, www.pin.ed.gov, is required to e-sign. Financial Aid Center will be notified electronically in 24-48 hours that you have completed this requirement. Exit Interview Students who are graduating or drop below half-time enrollment during a term must complete a Direct Loan Exit Interview. The PIN Number, www.pin.ed.gov, is required in order to complete the exit interview because personal loan information will be provided. When the student loan grace period ends and the loan comes due, the student will receive a repayment schedule from their Stafford Loan Lender and/or Direct Loans outlining the monthly payments and number of months required to repay the loan. It is important to notify your lender of address changes so that you will receive your repayment information. Annual Loan Limits Dependent undergraduate students: Freshmen - $5500, no more than $3500 subsidized Sophomores - $6500, no more than $4500 subsidized Juniors and Seniors - $7500, no more than $5500 subsidized Independent Undergraduate students Freshmen - $9500, no more than $3500 subsidized Sophomores - $10,500, no more than $4500 subsidized Juniors and Seniors - $12,500, no more than $5500 subsidized Graduate Students - $20,500, no more than $8500 subsidized Aggregate Loan Limits Undergraduate dependent students: $31,000 (no more than $23,000 subsidized) Undergraduate independent students: $57,500 (no more than $23,000 subsidized) Graduate students: $138,500 (no more than $65,500 subsidized) Direct Parent PLUS Loans “Complete PLUS Request Process”Parent’s of a dependent student may be eligible to borrow under the Direct PLUS Loan Program. The parent’s dependent student must also be enrolled at least half-time and maintaining Satisfactory Academic Progress to qualify. The student must meet all other eligibility requirements, as determined by the U.S. Department of Education. The maximum amount that the parent may borrow is the UWA cost of attendance as determined by the Financial Aid Center minus any other aid (scholarships, grants, loans, waivers, etc) received by the student. Parents must print, complete, and return the Parent PLUS Loan Application (click here, attachment) to apply. Parents must also go online to www.studentloans.gov and “Complete PLUS Request Process” prior to certification of eligibility by the University.