Loans

Federal Direct Subsidized Stafford Loan

A Federal Direct Subsidized Loan is awarded on the basis of the student’s financial need and other specific eligibility requirements. The federal government does not charge interest on these loans while borrowers are enrolled at least half-time. Graduate/law students are not eligible for Federal Subsidized Loans.

Federal Direct Unsubsidized Stafford Loan

A Federal Direct Unsubsidized Loan is not based on the student’s financial need, but students must also meet specific eligibility requirements. Interest is charged throughout the life of the loan. The borrower may choose to pay the interest charged on the loan or allow the interest to be capitalized (added to the loan principal).

Loans Requiring a Separate Application:

Federal PLUS Loan for Graduate/Professional Student Borrowers (Grad PLUS)

Under new federal rules, effective July 1, 2026, the Federal Direct Graduate PLUS loan is eliminated. The One Big Beautiful Bill Act gradually ends PLUS loan eligibility for graduate and professional students. The law provides a limited exception that allows some students to continue borrowing PLUS loans during their remaining time to credential, but not to exceed three years. Students not qualifying for this limited exception are not eligible to borrow Grad PLUS loans. Click here or further information about the limited exception.

For those who qualify for the limited exception, the Federal Grad PLUS Loan is not based on financial need and is limited to graduate and professional level students attending at least half-time. The annual limit is equal to the student’s cost of attendance, as defined by The University of Alabama, minus any other financial aid the student is receiving. Annual loan eligibility is reduced proportionally by your enrolled hours if you attend less than full-time. Applicants are required to pass a credit check. PLUS loans carry a fixed interest rate and an origination fee. We must receive the results of your completed FAFSA before we can process your Federal PLUS Application. Apply for a Federal Graduate PLUS loan here. Certain borrowers may also be required to complete federal PLUS loan counseling. Federal Student Aid will notify you if you need to complete the counseling requirement.

• The 2026-2027 Grad PLUS Loan application is available now.
• The Summer 2027 Grad PLUS Loan application will open April 2027.

Federal Direct Parent Loan for Undergraduate Students (PLUS)

Under new federal rules effective July 1, 2026, Parent PLUS loans will now have annual and aggregate borrowing limits established by the One Big Beautiful Bill legislation. Starting in the 2026–27 academic year, Parent PLUS Loans will be limited to:

• Annual Limit: $20,000 per student per year.
• Aggregate Limit: $65,000 per student total.

The law does allow a limited exception for some qualifying students to continue borrowing under the previous year’s rules for the student’s remaining time to credential, not to exceed 3 years. Click here for further information about the limited exception.

For those who qualify for the limited exception, the PLUS is not based on financial need and is limited to a parent borrower for a dependent student attending at least half-time. A parent is currently defined as a person’s natural or adoptive mother or father, or the step-parent married to the custodial parent. The annual limit is equal to the student’s cost of attendance, as defined by The University of Alabama, minus any other financial aid the student is receiving. Parents are required to pass a credit check. PLUS loans carry a fixed interest rate and an origination fee. We must receive the results of your completed FAFSA before we can process your Federal PLUS Application. Apply for a Federal Parent PLUS loan here. Certain borrowers may also be required to complete federal PLUS loan counseling. Federal Student Aid will notify you if you need to complete the counseling requirement.

• The 2026-2027 PLUS Loan application is available now.
• The Summer 2027 PLUS Loan application will open April 2027.

Alternative Loans

Alternative, or private, loans are non-federal loans and are available to both undergraduate, graduate/professional, and international students. You are not considered for these loans when you complete the FAFSA.

Federal loans are usually not as expensive as alternative loans. We encourage you to apply for all available federal aid before you consider private loans. However, if you do not qualify for federal aid, or if the available aid is insufficient, alternative loans are an option.

Carefully research the options with your co-borrower (if applicable) and apply for the private loan that best suits your needs. The terms vary widely, as do the eligibility criteria.

For an unbiased tool comparing loan products available with the lenders used most frequently by UA students in the past year, check out the ELM Select service at the link below.