Financial Aid FAQ

How do I apply for Financial Aid?
Do I have to reapply for financial aid every year?
If my parents are separated or divorced, whose income should be reported?
If I have a step-parent in the household, must their income be reported on the FAFSA?
How do I become an independent student for federal aid purposes?
I have filled out the FAFSA. What do I do next?
Why do I have to submit my tax transcripts?

How do I apply for Financial Aid?
Students apply for financial aid by filling out the Free Application for Federal Student Aid (FAFSA) at fafsa.gov.

Do I have to reapply for financial aid every year?
Yes. If your financial circumstances change, your eligibility for aid may change. After your first year you will complete a "Renewal Application" which contains pre-populated information from the previous year's FAFSA. Note that your eligibility for financial aid may change significantly, especially if you have a different number of family members in college. Renewal of your financial aid package also depends on your making satisfactory academic progress toward a degree, such as earning a minimum number of credits and achieving a minimum GPA.

If my parents are separated or divorced, whose income should be reported?
You must report the income of the parent with whom you have resided for the majority of the past 12 months. If this is equal, you should report the income of the parent who provided more than 50% your support during the last 12 months.

If I have a step-parent in the household, must their income be reported on the FAFSA?
Yes. Dependent students are required to provide step-parent income if the household in which you live is maintained by the combined income of a natural parent and step-parent.

How do I become an independent student for federal aid purposes?
Generally students who are under the age of 24 cannot be considered to be independent for financial aid purposes. Step Three of the FAFSA determines if you are dependent or independent for financial aid purposes. If you answer “yes” to any question you are considered an independent student—please note that for some of these circumstances, documentation will be required.

I have filled out the FAFSA. What do I do next?
After completing the FAFSA, allow 3-4 business days for your information to reach the school. Once UAB receives your information, you can log into BlazerNet and check the “My Financial Aid” page for any additional requirements that you may need to complete. Once you have been awarded, you will be notified at your UAB email address.

Why do I have to submit my tax transcripts?
The US Department of Education selects some students for a process known as verification. This is essentially a “quality control” process that ensures that the information students provide on the FAFSA is accurate. Some students will never be selected for verification, while others will be selected every year. The process is simple, and requires a student (and, parent, for dependent students) to provide tax data directly from the IRS, either by returning to the FAFSA application online and using the IRS data retrieval option or by submitting an IRS Tax Return Transcript. Each student selected for verification also must complete a Verification Worksheet. If you are selected for verification, you can find all of your requirements and instructions on the “My Financial Aid” page on BlazerNet.

Types of Financial Aid

What is work study, and how can I be awarded work study funds?
Work study is a federal program that provides funding for part-time employment to students enrolled at least half-time. Unlike loans and grants, which will pay to the student on the first day of class, work-study funds must be earned. To be considered for work study, students have to complete a FAFSA, and check the box stating they are interested in work study. The funds are awarded based on both financial need AND availability of the funds. Because funds are limited, not all eligible students will receive a work-study award.

If you did not receive work study after requesting it on the FAFSA, you can request to be placed on the work-study waiting list. Students on the waiting list will be awarded as funds become available throughout the year. To be placed on the waiting list, simply visit the “My Financial Aid” page on BlazerNet, select “Financial Aid Change Request” from the top menu, check the box that reads, “Please place my name on the waiting list for Federal Work Study Program”, and submit the form. If you are eventually awarded work study, you will be notified by email, and can then proceed to apply for work study positions on Dragontrail.

What is the difference between a subsidized and an unsubsidized loan?
A SUBSIDIZED loan is need-based, and the federal government pays the interest on the loan while the student is in school at least half-time and for a 6-month grace period after the student ceases to be enrolled at least half time. An UNSUBSIDIZED loan is one where the government does not pay the interest while the student is in school, that is, the student is responsible for paying the interest, which begins to accrue as soon as the loan is disbursed to the borrower. Borrowers of unsubsidized loans are encouraged to pay the interest that accrues, as it will greatly decrease the amount owed when the student enters repayment.

Are there limits on what I can borrow each year?
Yes. In the Federal Direct loan program, student borrowers cannot exceed established annual loan limits. The limit varies depending on grade level and whether you are a dependent or independent student. The following chart outlines the annual loan limits established by the Department of Education.

Annual Loan Limits for Student Borrowers of Direct Loans
	Dependent Students	Independent Students
Freshman	$5,500	$9,500
Sophomore	$6,500	$10,500
Junior/Senior	$7,000	$12,500
Graduate/Professional	N/A	$20,500
Medical, Dental, Optometry	N/A	Varies, up to $47,167

I’ve been in school for several years. Can I run out of loan or grant eligibility?
Yes. Both Federal Pell Grants and Federal Direct loans have lifetime limits. An undergraduate student working toward a first bachelor’s degree can receive Pell Grant funds for no more than the equivalent of 6 years of full time study. Once a student has obtained a first bachelor’s degree, the student is no longer eligible to receive Pell Grant funds.

The chart below outlines the federal loan limits for both undergraduate and graduate students.

Aggregate (Lifetime) Loan Limits for Direct Loans
	Subsidized Loans	Unsubsidized Loans
Dependent Undergraduates	$23,000	$31,000
Independent Undergraduates	$23,000	$57,500
*Graduate/Professional Students	$65,500	$138,500
*Medical, Dental/ Optometry	$65,500	$224,000
*Includes any loans obtained as undergraduate.

My Award and Disbursement Information

I got an outside scholarship. Should I report it to the financial aid office?
Yes. If you are receiving any kind of financial aid from university, civic or other sources, you must report the information to us. In some cases, we will need to adjust your financial aid package due to receipt of additional funds.

Will my financial aid award package cover my entire balance?
It depends. Eligibility is based on grade level, federally established limits, and availability of some federal funds. Additionally, the balance due varies greatly from student to student, based on the whether or not the student is an in-state resident, the number of hours the student is planning to take and the various fees that apply to some courses. Some students will find that most or all of their balance due is covered by federal aid, while others will need to obtain other sources of funds in order to pay for school. For example, an in-state resident living at home and taking 12 credit hours will have a significantly lower balance than an out-of-state resident living on campus, purchasing a meal plan, and taking 18 credit hours. Each of these students, however, could potentially be awarded the same amount of financial aid.

Do I have to be full-time to receive financial aid?
No. However, for some types of aid, you must be at least half-time in order to receive aid. Federal Pell Grant funds are available to eligible students no matter their enrollment status. The Pell disbursement amount is prorated based on enrollment, though. Federal loan funds are only available to a student who is enrolled at least half time. For undergraduate students, half time is considered to be at least 6 hours of undergraduate level classes in any semester (including summer). For graduate students, half time is considered to be at least 5 hours of graduate level classes in any semester (including summer).

I have classes that begin at different times. When will I receive my funds?
Funds cannot disburse to your UAB account until you are attending at least a half-time. For example, a student is registered for two courses— one 3-hour course begins in August, the other 3-hour course doesn’t begin until mid-October. Federal aid will NOT disburse to the student's account until mid-October, when the student is considered to be enrolled in 6 credit hours.

What are my options if my award does not cover my entire balance?
Graduate students and parents of dependent undergraduate students who find that they need additional funds to cover their balance can apply for PLUS loans on studentloans.gov. PLUS loans are designed to cover the remainder of a student’s cost of attendance after all other financial aid has been accepted. Private loans are another alternative to cover remaining balances after the federal award package is not sufficient. Both of these types of loans are credit-based, so not everyone will qualify.

Are there alternatives for a student whose parents have been denied a Parent Loan for Undergraduate Students (PLUS)?
A student whose parents have been denied a PLUS may pursue alternatives such as additional student borrowing under the Federal Unsubsidized Direct Loan program, or through private education loans.

After my financial aid disburses, how much will I owe?
Once all charges have been posted, you can see what your anticipated remaining balance will be on BlazerNet. Simply click on the word "Account Balance" on the home screen to view a detailed account summary for each term. This account summary will show all charges and payments for each semester, and will also calculate how much a student owes for the prepayment deadline. If you have accepted a loan that you do not see reflected on this screen, go to the “My Financial Aid” page and make sure that all requirements for the loan have been satisfied (entrance counseling requirements, promissory notes, etc.).

My financial aid has disbursed to my account. When can I get a refund?
If a credit balance is created when federal aid disburses to your account, the Student Accounts Office will issue a refund to the student, or in some cases, the parent of a dependent student. Students may set up direct deposit on BlazerNet; or a paper check will be mailed to the mailing address that UAB has on file for the student. If a parent PLUS loan created a credit balance, the excess funds may be mailed to the parent borrower or provided to the student, depending on the parent’s request at the time of application.

What if I need to drop a class, or classes?

How Will Withdrawing From a Course Affect My Financial Aid?
In general, withdrawing from a single class after the official census date will have no effect on a student’s financial aid. The census date for each semester can be found on the Academic Calendar. While students must be enrolled at least half-time to receive federal student loans (6 hours for undergraduates and 5 hours for graduates), withdrawing to below half-time status after loans have been disbursed will NOT result in a loss of financial aid eligibility. For example, if a student registers for two 3-hour courses (6 hours total), receives federal student loans, and then decides after several weeks to withdraw from one of his or her classes (resulting in 3 total semester hours), there will be no changes in the student’s financial aid. For financial aid purposes, the total number of hours that a student is registered for on the census date is the total number of hours that the student has for the semester

It is important to note that while withdrawing from a single class during a semester will generally have no effect on a student’s financial aid, CONSISTENTLY withdrawing from courses each term may eventually lower a student’s completion rate to an ineligible level. A student’s completion rate is the ratio of hours completed to hours attempted. Each withdrawn course will count as attempted hours but not completed hours, thus slightly lowering a student’s completion rate. UAB mandates, as part of the Satisfactory Academic Progress (SAP) policy, that students maintain a minimum 67% completion rate in order to remain eligible for financial aid. In other words, roughly two thirds of the total number of hours that a student attempts must be finished and passed. For the full SAP policy, visit www.uab.edu/SAP.

How Will Withdrawing from the Semester Affect My Financial Aid?
When a student begins the semester but withdraws from the entire term, it will usually result in a change to a student's financial aid eligibility. When a student who has received federal aid completely withdraws from a term (withdraws from every registered course), federal regulations require that the school determine the portion of aid the student is entitled to keep. Often, a portion of a student’s loans or federal grant money must be returned to the Department of Education. The portion that is returned will depend on the date the student withdrew. This process will generally result in a balance on the student’s account.

What is the difference between 'dropping' and 'withdrawing' from classes?
When a student ‘drops’ a class, they will receive a full refund for the price of the class, and there will be no record of the class on the student’s academic transcript. This can typically only be done during the first week of the semester. The last day to drop and add classes each semester is noted on the academic calendar. Dropping a class can potentially result in the following changes to a student’s financial aid:

When a student ‘drops’ a class, they will receive a full refund for the price of the class, and there will be no record of the class on the student’s academic transcript. This can typically only be done during the first week of the semester. The last day to drop and add classes each semester is noted on the academic calendar. Dropping a class can potentially result in the following changes to a student’s financial aid:

Dropping below half-time (6 hours for undergraduates, 5 hours for graduates) will result in a student being ineligible to receive federal loans that have not yet disbursed.
For students receiving a Pell Grant, any change in enrollment status will result in a proportional change in the amount of the award. For example, if a student receiving a Pell Grant drops from 12 hours to 9 hours before the drop/add date, his/her grant will be reduced by 25% for the semester. Conversely, if a student enrolled for 6 hours adds a 3-hour course during drop-add, their Pell Grant award will be increased.

After the Drop/Add date has passed, 'withdrawing' is the only option. Withdrawing from a class will result in a 'W' on the student’s transcript, and no refunds for the withdrawn class will be issued. An explanation for how withdrawing can affect your financial aid can be found above.

Additional Questions

If I transfer to UAB from another school, or transfer from UAB to another college, does my financial assistance go with me?
No. A student who transfers to another school must apply for financial assistance at the school they are planning to attend. The student must complete the FAFSA using the other institution’s school code. UAB’s Title IV school code is 001052.

Is financial assistance available for summer?
Yes, but only if a student is enrolled at least half-time and has not exhausted their grant and/or loan eligibility during the past academic year. Students who wish to be considered for aid must complete the Request for Summer Aid, available in the spring of each year and have a completed FAFSA on file. Students who have exhausted their eligibility for federal grants and loans during the academic year may wish to consider a PLUS loan or alternative loan as an option to help pay summer expenses.

Can I get assistance to study abroad?
Yes. You must complete the FAFSA to determine your eligibility as usual. If the study abroad opportunity is not sponsored or sanctioned by UAB, the student must obtain and return completed Consortium Agreement paperwork. Contact our office for more information.

When do my loans go into repayment?
Federal Direct Subsidized and Unsubsidized loans enter repayment 6 months after the student borrower ceases to be enrolled at least half time.

Federal Perkins loan enter repayment 9 months after the student borrower ceases to be enrolled at least half time.

Parent PLUS loans enter repayment 60 days after the loan is fully disbursed. For example, a PLUS loan was approved and awarded for the fall and spring semesters. Half of the loan funds disbursed in the fall, and the other half disbursed in January for the spring term. The loan entered repayment 60 days after the spring disbursement. Deferments of parent PLUS loans are available, but the parent borrower must contact their federal loan servicer for details.

Grad PLUS loans are deferred for 6 months after the student is no longer enrolled at least half time.

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