University of Northern Alabama Student Loan Information

/Home/Student Loan Information by State/Alabama Student Loans/Loan Information for Alabama Universities

Student & Parent LOANS

Student loans are the primary source of student aid at UNA. Loans must be repaid, although principal and/or interest payments may be deferred while the student is enrolled at least half-time.
STUDENTS MUST BE ENROLLED IN AT LEAST SIX CREDIT HOURS TO BE ELIGIBLE TO RECEIVE FEDERAL STUDENT LOANS.

Student loan programs provide long-term, low interest loans to students demonstrating a need for assistance.

Application
To be considered for loans at UNA, file the FAFSA.

Federal Stafford Loans*
The University of North Alabama participates in the Federal Family Education Loan Program (FFELP). The FFELP program provides incentives and services that benefit our students and parents.

Federal Stafford Subsidized Loans
Federal Stafford Subsidized Loans are based on financial need as well as annual and aggregate loan limits. Interest on this loan does not accrue during eligible periods of enrollment and stated grace periods. The interest rate is variable not to exceed 8.25%. Both interest accrual and repayment begins six months after graduation or when a student is no longer enrolled at least half time (6 semester hours).

Federal Stafford Unsubsidized Loans
Federal Stafford Unsubsidized Loans are based on annual and aggregate loan limits and is not need-based. Interest on this loan begins to accrue upon the first disbursement. The interest rate is variable not to exceed 8.25%. Principal repayment begins six months after graduation or when a student is no longer enrolled at least half time (6 semester hours).

Loan Amounts
Annual Loan Limits (combined maximum for subsidized and unsubsidized) under the Stafford Loan Programs effective July 1, 2008:

Dependent Undergraduate students
Freshmen - $5500
Sophomores - $6500
Juniors and Seniors - $7500
The aggregate limit is $31,500 (no more than $23,000 may be in subsidized loans)

Independent Undergraduate students
Freshmen - $9500
Sophomores - $10,500
Juniors and Seniors - $12,500
The aggregate limit is $57,500 (no more than $23,000 may be in subsidized loans).

Graduate Students
$20,500 annually, limited to cost of attendance (no more than $8500 of this amount may be in subsidized loans).
The aggregate limit for graduate students is $138,500 (no more than $65,500 of this amount may be in subsidized loans).

Master Promissory Note
After you have accepted your loan you must sign a Master Promissory Note (MPN). The instructions below tell you how to E-sign your MPN. By completing and signing the MPN, you are promising to repay all student loans made under this note. You may have to sign only one MPN for the life of your student loan. However, if you change lenders or transfer to another school that requires an annual note, a new MPN must be signed. An MPN expires ten years after the note is signed. An MPN is revoked if a disbursement is not made within one year.
SPECIAL NOTE FOR 2008-2009: ALL student borrowers must sign a new Master Promissory Note (MPN). Even if you have previously obtained a Stafford loan while a student at UNA, you must complete this step before your loan can be applied to your student account.
Complete the following steps to receive your Stafford loan:

Review your award notification. Please contact our office if you have any question regarding your awards.
To accept, reduce, or decline your financial aid, access your UNA PORTAL account and click Self Service, then Financial Aid and choose Award. Select Award for Aid Year and the the current aid year. Click on the Accept Award Offer tab.
If you accept a student loan, you must select a lender. While in the Accept Award Offer tab, Select a Lender from the drop-down box located on the right hand side of the screen. If you have previously selected a lender, the lender name should be listed there. If your lender is no longer actively lending, your lender will not be listed and you will need to make another selection. If you want to change a previous lender selection, please contact our office to do so.
If you accept a student loan offer and have not previously completed loan entrance counseling, it must be completed before your loan will disburse. In Self-Service, click on Financial Aid, and click the link to Loan Entrance Counseling. Once you have successfully completed loan entrance counseling, the Office of Student Financial Services will receive an electronic confirmation. You may also bring the confirmation number to our office, if you choose. Please do not confuse ENTRANCE counseling with EXIT counseling.
After you have selected a lender, you must complete a student loan application and sign an MPN, or Master Promissort Note for that lender. In Self-Service, click on Financial Aid and choose the link to “Suggested Lenders”.
This will take you to the ELMSelect web site where you will find a list of suggested lenders for UNA students.
Make sure to choose the tab for Stafford loans.
Review the lenders and click the Apply Now button for the lender of your choice. Follow the lenders instructions for completing your application and MPN.
Be sure to check your financial aid requirements in Self-Service Banner by selecting Financial Aid, Status, and Student Requirements. Outstanding requirements may prevent the timely disbursement of your financial aid.

Required Loan Entrance and Exit Interviews
Entrance Interview
Students must complete the Entrance Counseling requirement before Stafford Loan funds can be disbursed. Mapping Your Future is our student loan entrance interview partner for all Stafford Loans. Mapping Your Future is an online student loan entrance counseling service that provides details about what a student loan is, advice on how much you should borrow, and when you should expect to repay your loans. To complete Entrance Counseling, visit Mapping Your Future. After your data is submitted, Mapping Your Future will notify our office electronically within 24-48 hours that you have completed the requirement.

Exit Interview
During the term that you expect to graduate, you will be asked to complete an Exit Interview if you have had a Stafford loan while at UNA. To complete the Exit Interview Requirement, visit Mapping Your Future. At this time, information regarding your rights and responsibilities relative to the repayment of your loan will be provided. When your grace period ends and your loan becomes due, you will be sent a repayment schedule from your lender outlining the monthly principal and interest payments and number of months required to repay your loan balance. It is very important to notify your lender of address changes so that you will receive your repayment information.

Federal Perkins Loans**
Federal Perkins Loans are federally funded loans that are awarded to students with exceptional financial need. Repayment and accrual of interest at the rate of 5% begin nine months after the student is no longer enrolled at least half time (6 semester hours). The minimum repayment is $40 per month and repayment may be extended for up to 10 years. These loans are awarded by the Office of Student Financial Services. You will be notified via your UNA Portal email account if you are eligible for a Federal Perkins Loan.

Non-federal Certified Private Loans (Alternative Loans)
Many private lenders offer Certified Private Loans to supplement federal eligibility. Applications are available through the individual lenders. Review the suggested lenders on our Suggested Certified Private Lender List. Choose the “Apply Now” button for the lender of your choice and complete their application and promissory note. If you choose a lender that is not on our Suggested Lender List, please contact our office for further instructions.

Federal Parent Plus Loans
Attention Parents - If you are the parent of a dependent student, you may be eligible to borrow under the Federal PLUS loan program. To receive a PLUS loan, your dependent student:

Must have a completed FAFSA on file at the University of North Alabama
Must be enrolled at least half time
Must be maintaining Satisfactory Academic Progress
Must meet all other requirements of Title IV aid, as determined by the Department of Education.
The maximum amount that the parent may borrow under the Federal PLUS loan program, is Cost of Attendance minus any other aid (scholarships, grants, loans, waivers, etc) received by the student.
Please visit our Parent PLUS Lender List for benefits, incentives, websites, and phone numbers of the lenders that participate electronically with the University of North Alabama. To obtain a PLUS loan:

You will apply directly through your chosen lender, either by choosing the 'Apply Now' link on the electronic lender list, or by calling the lender.
If you choose a lender not listed on this electronic list, please call our office for special instructions.
Your lender will contact UNA for a Loan Certification once your application is approved and a Master Promissory note has been collected.
You must complete the PLUS Institutional Supplement Form - In addition to an application with your lender, the University of North Alabama will need an Institutional Supplement Form. Please complete and submit this form online.
If you are an ongoing PLUS loan borrower, the following notice DOES NOT apply to you, and you may disregard this information.

If you are planning to apply for a new PLUS loan for the 2009-2010 academic year, please read the following information carefully and completely.

DO NOT COMPLETE YOUR PLUS LOAN APPLICATIONS AT THIS TIME. The U.S. Department of Education recently announced changes to the way that PLUS loans will be handled. The newly announced program (Competitive Loan Auction) is scheduled to be put into place for the 2009-2010 academic year and only applies to new, first-time borrowers. We expect to receive more details from the Department at the end of April. If you are interested in reading more about the Department's Competitive Loan Auction Pilot Program, you may view the information at this link: http://www.ed.gov/about/offices/list/ope/plus-auction/index.html
Please check back to this page periodically for any updated information or contact Student Financial Services at 256-765-4278 or 800-TALK-UNA, if you have any questions.

* New Stafford loan borrowers (on/after 10-1-98) who have taught in certain eligible elementary and secondary schools that serve low-income families may qualify for "loan forgiveness." To finds out whether your school is considered a low-income school, visit the Department of Education website or call 1-800-4-FED-AID.
** Perkins borrowers who have graduated from UNA and are now engaging in teaching, public service, service in Peace Corps or Action, or service in the military may qualify for postponement or cancellation. For more information on Federal Perkins Loan cancellation click here.
Un