Loans
UMA students have several options in obtaining loans for their college work.
Federal Stafford Loan Program
The Federal Stafford Loan Program offers either subsidized or unsubsidized loans. Students may apply for these loans by completing the Free Application for Federal Student Aid (FAFSA).
A subsidized loan is awarded on the basis of financial need. The federal government pays the interest on the loan until repayment begins. An unsubsidized loan is not awarded on the basis of need. Students are charged interest from the time the loan is disbursed until it is paid in full.
Stafford loan interest rates are variable; that is, they are adjusted each year. The maximum interest rate is 8.25 percent for both the subsidized and unsubsidized federal Stafford loans. Stafford loan borrowers pay an origination fee of three percent or less depending on the lending institution. Repayment begins six months after the last semester of attendance on at least a half-time basis.
Parent Loan for Undergraduate Students (PLUS)
The Parent Loan for Undergraduate Students (PLUS) is designed for parents of dependent students. Interest rates are low, currently under nine percent. Parents should obtain PLUS applications from their lending institution.