Loans are debt obligations with serious legal implications. Loans must be repaid with accumulating interest normally over several years. Evaluate your need for a loan before you borrow by considering the following:
- Have you estimated your tuition/fees/books and living costs for the school year and will your income and/or other aid meet your budget without a loan?
- Can you use a UMA Payment Plan instead of taking a loan?
- Do you have a plan for loan repayment should you need to drop below ½ time during a semester or withdraw from UMA before you graduate?
- Have you considered what your average salary will be when you graduate? Will your salary be enough to cover your living expenses and your student loan payments? Use the Loan Payment Calculator at: www.finaid.org/calculators/
Federal Stafford Loans are available through the U.S. Department of Education (William D. Ford Direct Loans) Eligible students can receive both subsidized and unsubsidized loans during the same period of attendance. Federal regulations specify the maximum loan amount students can borrow each academic year based on academic status and dependency status (as defined on the FAFSA).
- Federal Subsidized Stafford Loans are offered to eligible students based upon financial need. Payment of principle is deferred and interest is paid by the federal government while the student is enrolled at least half-time.
- Federal Unsubsidized Stafford Loans are offered to eligible students. Payments of the principle are deferred, but the interest accrues or is paid by the student while in school. Caution: if you allow the interest to accumulate (capitalize) the interest will be added to the principal amount of your loan and additional interest will be based upon the higher amount. You may choose to pay the interest to your lender as it accumulates to avoid additional costs that result from capitalization.
Loan eligibility cannot exceed cost of attendance minus other aid.
| Academic Status | Loan Type | Independent Student | Dependent Student |
|---|---|---|---|
| Freshman* | Sub. Unsub. | $3500 $6000 | $3500 $2000 |
| Sophomore** | Sub. Unsub. | $4500 $6000 | $4500 $2000 |
| Junior | Sub. Unsub. | $5500 $7000 | $5500 $2000 |
| Senior | Sub. Unsub. | $5500 $7000 | $5500 $2000 |
*Students in qualifying certificate programs will be considered at no higher than freshman level for loan eligibility.
**Students in associate degree programs will be considered at no higher than sophomore level for loan eligibility.
Maximum lifetime undergraduate Stafford Loan eligibility (subsidized and unsubsidized combined) is $31,000 as a dependent student and $57,500 as an independent student with a maximum of $23,000 as subsidized loans.
Federal PLUS Loans (Parent Loans for Undergraduate Students) UMA participates in the Federal Direct PLUS Loan Program. These loans are available for parents of dependent undergraduate students with a good credit history to pay the educational expenses for students enrolled at least half-time (six credit hours per semester). Please contact the financial aid office to request the PLUS loan. Parents will be required to complete an electronic Master Promissory Note and Entrance Counseling Session at www.studentaid.gov.
Alternative Education Loans are private education loans not guaranteed by federal funds and are commonly called “alternative loans” and have different eligibility criteria determined by the individual lenders. UMA’s preferred Alternative Lender list can be found here.