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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, 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 low-interest federal student loans to eligible students. Federal Direct Loans include both Direct Subsidized Loans and Direct Unsubsidized Loans.

For complete information about federal student loans, including current interest rates and repayment options, visit the website.

Direct Subsidized Loans

Direct Subsidized Loans are awarded based on financial need. Interest does not accrue while you are enrolled at least half-time, during your grace period, and during approved deferment periods. Repayment begins after you leave school or drop below half-time enrollment, following the applicable grace period.

Direct Unsubsidized Loans

Direct Unsubsidized Loans are available regardless of financial need. Interest begins accruing when the loan is disbursed. You may choose to pay the interest while enrolled or allow it to accrue until repayment begins.

Annual Loan Limits

Note: Federal student loan limits are established by the U.S. Department of Education and are subject to change. For the most current annual and aggregate loan limits, please refer to the .

Note: Beginning with the 2026–2027 academic year, federal regulations require annual Direct Loan eligibility for students enrolled less than full-time to be prorated based on enrollment intensity under the Schedule of Reduction (SOR).

Dependent Undergraduate Students

• Freshman: $5,500 (up to $3,500 may be subsidized)
• Sophomore: $6,500 (up to $4,500 may be subsidized)
• Junior and Senior: $7,500 (up to $5,500 may be subsidized)

Independent Undergraduate Students

• Freshman: $9,500 (up to $3,500 may be subsidized)
• Sophomore: $10,500 (up to $4,500 may be subsidized)
• Junior and Senior: $12,500 (up to $5,500 may be subsidized)

Graduate Students

Graduate students may borrow up to $20,500 annually in Direct Unsubsidized Loans, subject to federal eligibility requirements.

Aggregate (Lifetime) Loan Limits

Undergraduate Students

• Dependent undergraduate students: $31,000 (up to $23,000 may be subsidized)
• Independent undergraduate students: $57,500 (up to $23,000 may be subsidized)

Graduate Students

Graduate students who are subject to the federal loan changes effective July 1, 2026 may borrow up to $100,000 in Direct Unsubsidized Loans over the course of their graduate education.

Students who qualify under the federal Legacy Provision may remain eligible under previous borrowing rules. For additional information about graduate loan limits and eligibility, visit the 2026 Federal Financial Aid Updates page.

Federal Financial Aid Changes Effective July 1, 2026

Federal legislation introduced significant changes to federal student and parent borrowing beginning with the 2026–2027 academic year.

Read UWA’s Federal Financial Aid Updates to learn how these changes may impact your educational funding options.

Direct Parent PLUS Loans

Parents of dependent undergraduate students may qualify for a Federal 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 requirements established by the U.S. Department of Education.

For Parent PLUS Loans first borrowed on or after July 1, 2026, Parent PLUS Loans are subject to the following federal borrowing limits:

• Annual limit: $20,000 per dependent student
• Aggregate (lifetime) limit: $65,000 per dependent student

Some parent borrowers may qualify for the federal Legacy Provision, which allows continued borrowing under previous federal rules for a limited period. For complete eligibility requirements and additional information, review the 2026 Federal Financial Aid Updates page.

To apply, parents must complete the Parent PLUS Loan application and credit check at .

Graduate PLUS Loans (Legacy Borrowers)

Beginning July 1, 2026, the Federal Direct Graduate PLUS Loan program was discontinued for new borrowers. Graduate students who qualify under the federal Legacy Provision may remain eligible to borrow Graduate PLUS Loans under previous federal rules for a limited period.

Graduate students who do not qualify for the Legacy Provision may be eligible to borrow up to $20,500 annually in Direct Unsubsidized Loans, subject to applicable federal annual and aggregate borrowing limits.

For complete information about eligibility, borrowing limits, and the Legacy Provision, review the 2026 Federal Financial Aid Updates page.

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 fixed 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 .

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 and submit it to their lender.

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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 credit checks that remain valid for approximately 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 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 . Completion is reported electronically to UWA, typically within 48 hours.

Exit Counseling

Students who graduate or drop below half-time enrollment during a term are required to complete a . 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 [email protected]
• 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.