Need-based student loans are appealing because they can be repaid over a long period of time with a low interest rate.

  • Another big benefit of loans is that UAB is a federal direct lender. That means UAB lends funds to you directly from the U.S. Treasury, so you don’t have to complete bank loan forms or wait for checks to arrive from lenders. You get the money right when you need it.
  • These loans are sponsored by the federal government, but UAB determines your eligibility and handles processing.
  • All first-time borrowers are required to complete entrance counseling online.

  • Federal Direct Loans

    An unsubsidized loan is a loan for which the government does not pay the interest. Currently, the fixed interest on this loan is 6.079%. The borrower is responsible for the interest on an unsubsidized loan from the date the loan is disbursed, even while the student is still in school. Students may avoid paying the interest while they are in school by capitalizing the interest, which increases the loan amount. Unsubsidized loans are not based on financial need and may be used to finance the family contribution. See Stafford Loans for information about unsubsidized Stafford Loans.

  • Graduate/Professional PLUS Loan
    • Loan amount:
      Borrowers can take out the maximum amount of loan which is determined as the difference between a student’s total estimated cost of attendance and the amount of other financial assistance they receive each year, including scholarships, federal financial aid, and educational assistance. Borrowers can also indicate any lesser amount on the application.
    • Enrollment:
      Students must be enrolled at least half-time each semester to receive a PLUS Loan. Half-time for a graduate student is 5 hours per semester.
    • Interest rate:
      Rates are set each year. Interest rates are fixed for the life of the loan and interest begins accruing once funds are disbursed to a student’s account.
    • Repayment:
      Repayment is automatically deferred while students are enrolled at least half-time (5+ hours as a graduate student) and for six months after graduating or dropping below half-time enrollment.

    Learn More: Graduate PLUS Loan



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