Financial Aid Scholarships
Most scholarships are awarded and administered by the Traditional Admissions Office.
- Awarded to undergraduates and graduates who demonstrate financial need to assist with the cost of books, supplies, and personal expenses.
- May be awarded to those who enroll at least half-time.
- Award is earned by the student for working a specified number of hours per week at an hourly rate.
- Award is paid monthly.
- Funds are not credited against tuition or fees.
- Print an application-for-work-study or get one from the financial aid office
Teach Grant Program
The Teach Grant Program is for students who are enrolled in an eligible program and who agree to teach in a high-need field, at a low-income elementary or secondary school* as a highly qualified teacher, for at least four years within eight years of completing the program for which the TEACH Grant is awarded.
Eligible students may receive up to $4,000 per year. Failure to complete the four year service agreement will result in the grant being converted to a Federal Direct Unsubsidized Stafford Loan in which you must repay in full, with interest accrued from the date of the first disbursement.
Federal Loans and Private Loans
The Federal Direct Loan Program provides low-interest loans for students and parents to help pay for the cost of college. The lender is the U.S. Department of Education rather than a bank or other financial institution.
All Federal Direct Loans require:
- completion of the FAFSA
- a Master Promissory Note (MPN)
- a Loan Entrance Interview
- Loan Information Sheet
- report any scholarship, grant, fellowship, or loan received to the Financial Aid Office.
- report any changes in financial or academic status, academic program, living arrangements, enrollment status or name changes. The failure to do so may result in the cancellation, reduction, and/or repayment of need-based awards.
- meet all Satisfactory Academic Progress requirements before any funds are posted to accounts or released. If minimum requirements are not met, students may appeal the decision. For additional information call 334-386-7195 or email firstname.lastname@example.org.
Federal Direct Loans
A subsidized Direct loan is need-based and is awarded in the student’s name. Financial need is determined by the results of the FAFSA. The federal government pays the interest accruing on the loan while the student is enrolled at least half time in a degree seeking program. The loan is not based on credit-worthiness, nor is a co-signer required.
An unsubsidized Direct loan is not a need-based loan. The borrower is charged interest from the time the loan is forwarded from the Department of Education to the school until it is paid in full. The student has the option of paying this interest while in school or capitalizing the interest.
Capitalization is the process by which the Department of Education adds the unpaid interest balance to your principal balance. If you choose to pay the interest as it accumulates, you will repay less in the long run. The interest rate on a Direct Loan is fixed and may change each July 1st.
Borrowers can receive a combination of subsidized and unsubsidized loans. For example, if a first year dependent student is eligible to borrow only $1000 under the subsidized program, he may borrow an additional $4500 under the unsubsidized program to receive a total Federal Direct Loan equal to $5500 for the first year of undergraduate study. However, the maximum loan eligibility may not exceed federally regulated limits. Direct/PLUS loans are disbursed with a minimum enrollment of 6 hours (half time).
Annual Loan Limits
|Dependent Student||Independent Student|
|1st Year||1st year- $5500||1st year- $9500|
|2nd Year||2nd year- $6500||2nd year- $10,500|
|3rd Year||3rd year- $7500||3rd year- $12,500|
|4th Year||4th year- $7500||4th year- $12,500|
|Graduate||Graduate- n/a||Graduate- $20,500|
Aggregate Loan Limits
- $31,000 as a dependent undergraduate (no more than $23,000 of this can be in subsidized loans)
- $57,500 as an independent undergraduate (no more than $23,000 of this can be in subsidized loans)
- $138,500 as a graduate/professional student
Borrowers will be charged a loan fee. Loan fees will be deducted from the total amount borrowed. Student Accounts Office will credit the amount received to the student’s account.
Federal Direct Loan proceeds are disbursed electronically and credited to your account.
The net amount of the student’s Federal Direct Loan will be credited to your account. If this, along with any other aid applied, results in a balance due to the University, the student must pay the difference. if your loan funds exceed the balance due the University, a check or direct deposit made payable to you will be available within 10 working days of the posting of the award in the Student Accounts Office. The refund is usually available within 10 days of the disbursement date.
Loan Entrance/ Exit Counseling
A first time Direct loan borrower is required to complete an Entrance Counseling Session prior to receiving the first disbursement of a loan. A student who is graduating or withdrawing from Faulkner is required to complete an Exit Counseling Session.
Federal Parent Loan for Undergraduate Students (PLUS)
Either parent may borrow funds for a dependent undergraduate student to meet all or part of the educational expenses. PLUS loans require completion of a PLUS Loan Information Sheet, as well as a parent plus application.
- The borrower must be a U.S. citizen or eligible non-citizen and must have good credit. The student must be enrolled at least half time (6 semester hours) and be in good academic progress status.
- Parents may borrow an amount equal to the cost of attendance minus other financial aid for which the student is eligible. There is no aggregate limit on the total amount that may be borrowed.
- The interest rate for the Federal PLUS Program is fixed.
- Borrowers will be charged a loan fee.
- Dependent students, whose parents or guardians have been denied a PLUS loan, may borrow up to the increased independent student unsubsidized maximum.
Federal PLUS funds are typically disbursed in two installments – one in the Fall Semester and one in the Spring Semester. Funds will be received via Electronic Funds Transfer (EFT) and automatically posted to the student’s account (assuming the student is enrolled at least half time and is otherwise eligible). Funds may be used to pay monies owed the University first, with any remaining funds issued as a check which is mailed to the parent’s home address.
Repayment begins within 60 days after the final disbursement for each specific loan received. There is no grace period. This means that interest begins to accumulate at the time the first disbursement is made. Payments are made while the student is in school. Exceptions to this (deferment or forbearance) are available. For example, a parent attending college at least half time may defer payments and all parents may choose an interest only repayment option for up to 24-48 months. Please keep in mind that choosing one of these options will increase the overall cost of the loan. The parent borrower must contact the servicer for details. Non-payment will result in collection costs, legal fees, and late fees.
The servicer will arrange a repayment schedule, and a maximum repayment period from 10-25 years. The promissory note contains detailed terms and conditions of your loan.
Sample Monthly Repayment
Sample Direct Loan Repayments
(At interest rate of 6.80%)
Amount Borrowed *Monthly Payment
*estimated monthly payment
Sample PLUS Monthly Repayments
(At maximum interest rate of 9% and for 10-year repayment term)
|Amount Borrowed||*Monthly Payment|
*estimated monthly payment