Student Loan Opportunities - University of Mobile

Student Loans

Beginning fall 2010 the University of Mobile will move from the current Federal Stafford Loan Program and begin participation in the Federal Direct Loan Program. This will affect ALL borrowers, both new and returning. The decision to move to Direct Lending will ensure availability of federal loans to students.

In order to complete the Federal Direct Loan process a valid FAFSA (Free Application for Federal Student Aid) is required. www.fafsa.gov

To apply for a Federal Direct Loan, simply follow the directions below:

Complete the required Federal Direct Loan Entrance Counseling.
Complete the electronic Master Promissory Note: E-Sign using your Department of Education-issued PIN.

Your signed MPN is valid for a 10-year period and enables you to borrow subsequent loans under the same note without requiring you to complete a new loan application each year. If you previously have borrowed a student loan, your borrower rights and responsibilities remain unchanged and you are responsible for repaying your entire student loan obligation.

Federal Direct Loans

There are two types of Federal Direct Loans: subsidized and unsubsidized.

Direct Subsidized means that interest, which accrues on a loan, while a borrower is in school, grace, or authorized periods of deferment, is paid by the government. The borrower must meet certain financial need criteria in order to be eligible for Subsidized Loans.

Direct Unsubsidized means that the borrower is fully responsible for paying the interest that accrues on the loan. Interest on an Unsubsidized Loan accrues from the date of disbursement and continues throughout the life of the loan. If you do not meet the financial need criteria to qualify for a subsidized loan, you can still apply for an unsubsidized loan.

Repaying Your Federal Direct Loan 
You are required to begin repaying your Federal Direct loan six months after you graduate, leave school or drop below half-time attendance. Borrowers generally have 10 years to repay these loans.
Students who received a Federal Direct Loan are required to complete Exit Counseling upon graduation or withdrawing from school.

Requirements and Regulations for Federal Direct and Direct Parent PLUS Loans

All students applying for a Federal Direct Loan and parents applying for a Parent PLUS Loan must be U.S. citizens or eligible non-citizens.
All students must be enrolled in a degree-seeking program at least half-time (six hours) per semester to qualify for a Federal Direct Loan or to have their parents qualify for a Parent PLUS Loan.
Students must attend classes and maintain satisfactory academic progress to continue being eligible for their loans.
If students withdraw from classes before the end of the term, they must still repay their loans.
All single semester loans require two disbursement dates.

Loan Limits

Federal Loan Limits

Class Level	Dependent Limit	Independent Limit
Freshmen (0-29 hrs)	$5,500*	$9,500*
Sophomores (30-59 hrs)	$6,500*	$10,500*
Juniors (60-89 hrs)	$7,500*	$12,500*
Seniors (90+ hrs)	$7,500*	$12,500*

Federal Aggregate Lifetime Loan Limits

Dependent undergraduates: $31,500

Independent undergraduates: $57,500

Graduate and professional students: $138,500

*Students can only borrow up to the cost of attendance for their program of study. Check with the Financial Aid Office to see the cost of attendance for your program. You can only borrow one loan per academic level.

Direct Parent Plus Loan

The Direct Parent Loan for Undergraduate Students (PLUS) is designed to assist the parents of dependent undergraduate students enrolled at least half-time in meeting educational expenses. The parent must pass a credit check but there is no restriction on income that affects eligibility. A valid Free Application for Federal Student Aid (FAFSA) is required before a Parent PLUS Loan can be processed. A parent may borrow up to the cost of attendance less the financial aid received for the student.

PLUS Repayment, Interest Rates and Fees:
A Parent PLUS Loan is borrowed by the parent, not the student. Repayment is the parent’s responsibility. Interest is charged on the loan from the date the first disbursement is made until the loan is paid in full. Repayment begins within 60 days after the final loan disbursement. However, a parent may apply for an in-school deferment by contacting the Direct Loan Servicing Center at 800.848.0979 while the student is attending at least 6 hours in a degree program.

To request a Parent PLUS Loan please complete the Parent PLUS Requet Form and submit it to the Financial Aid Office.

If you need to request a change or to cancel your student loan, please complete the Student Loan Changes/Request Form and submit it to the Financial Aid Office.

If you have questions email us at askfinancialaid@umobile.edu or call a Financial Aid Counselor at 251.442.2239.