2012-2013 Financial Aid Forms

Types of Aid

Auburn Montgomery offers students a variety of financial assistance:

• Loans
• Grants
• Federal Work-Study
• Scholarships

Loans

Student and parent loan programs provide long-term, low-interest loans for students. Students must be enrolled at least half-time (6 undergraduate hours, 4.5 graduate hours) each term to qualify. All loans must be repaid.

The Federal Direct Subsidized Stafford Loan is based on financial need and annual and aggregate loan limits. Funds are disbursed each term according to the student’s award notification and promissory note requirements. Interest does not accrue during eligible periods of enrollment and grace periods. 
 
The Federal Direct Unsubsidized Stafford Loan is based on the cost of education and annual and aggregate loan limits. Funds are disbursed each term according to the student’s award notification and promissory note requirements. Interest begins accruing upon disbursement. 
 
The Federal Perkins Loan is based on exceptional need and availability of funds. It has an interest rate of 5 percent. Interest begins accruing and repayment begins nine months after graduation or when a student is no longer enrolled at least half-time. If a student is awarded a Perkins loan by the AUM Financial Aid office, the student is contacted by e-mail to complete an entrance interview and Master Promissory Note (MPN). Once a student pre-registers and completes the entrance interview process, the loan is paid directly to the AUM student account typically on the first day of class. Any credit balance created on the student account is refunded by the Cashier Office. When a student graduates or leaves AUM, Perkins Loan exit counseling is required. 
 
The Federal Direct Parent Loan for Undergraduate Students (PLUS) allows the parents or legal guardians of a dependent student to borrow money to pay educational costs not covered by other financial assistance. Repayment begins 60 days after the loan is fully disbursed. To apply, you must print and submit aFederal Direct PLUS Loan Request Form. Credit worthiness is the primary eligibility requirement. If the loan is denied on the basis of the credit report, the student may be able to receive an additional unsubsidized student loan. Students who need additional loan funds should bring the denial letter to our office and request a File Update Form to request the additional unsubsidized student loan.
 
Alternative Loans are available for students ineligible for Federal Direct Stafford or Perkins loans. Students must be credit worthy. These are last resort loans for students who perhaps have not maintained satisfactory academic progress, have already received the maximum Direct Stafford Loans or Direct PLUSLoans, or have exceeded the annual or cumulative loan maximums.  Loan amounts may not exceed estimated costs and/or unmet need remaining after other financial aid is considered. 
 
Loan Disbursement Rules
Loan funds will be disbursed directly to your AUM student account. However, loan funds for first-time, first-year undergraduate student borrowers may not be released until 30 days after the first day of classes for their first semester. Undergraduates must be enrolled for at least 6 hours for the loan funds to be disbursed. Graduates must be enrolled in 4.5 or more hours to receive loan disbursements.
 
A promissory note or agreement to repay the loan must be completed and signed prior to the loan approval and disbursement process.
 
Students must also complete online Federal Direct Stafford Loan Entrance Counseling before funds can be disbursed by Direct Lending.
 
Loans approved for a single semester are disbursed in two equal payments: the first at the beginning of classes and the second at midterm. 
 
Student loans are awarded on the basis of class level or hours completed and dependency status:

Note: If you progress to the next classification within the award year, you may request the higher loan limit for the semester by completing a File Update Form and indicating that you have changed from freshman to sophomore, etc. If you are pursuing a second bachelor's degree, you will be awarded as a "senior" rather than a graduate student. Annual loan awards usually cover an academic year consisting of two semesters or nine months.
 
**Due to a change in federal legislation beginning July 1, 2012, graduate/professional students will be ineligible to receive the Federal Direct Subsidized Stafford Loan.   Graduate/professional student will still be eligible to receive the Federal Direct Unsubsidized Stafford Loan.
 
New and returning student borrowers will be required to eSign a Direct Loan Master Promissory Note (MPN).  New borrowers will be required to complete Direct Loan Entrance Counseling.  Previous borrowers who have already completed Entrance Counseling will not be required to repeat counseling to receive Direct Loans.  

Grants

A grant is gift aid that does not have to be repaid. Only students pursuing their first undergraduate degree are eligible for grants. There are five types of grants available at AUM:

• The Federal Pell Grant is based on financial need. The amount of your Pell Grant is determined by the Federal Processor based on the cost of enrollment at AUM. The amount of any Pell Grant award shown on your award notification is contingent on full-time enrollment (at least 12 hours) for each term shown. If you enroll less than full time, your grant must be adjusted accordingly. If your Pell Grant is relatively small to begin with (less than $589 per semester) it may be reduced to zero, in some cases, if you are enrolled less than full time. The following general rule of thumb may be applied to most Pell Grant awards:
  • 9, 10 or 11 hours = 75 percent
  • 6, 7 or 8 hours = 50 percent
  • Less than 5 hours = 25 percent

The U.S. Department of Education has discontinued the Two Pell Grants in an Aid Year effective 2011-2012.

• The Federal Supplemental Educational Opportunity Grant (SEOG) is based on exceptional need and availability of funds. Students must be:
  • Eligible for a Federal Pell Grant
  • Apply early
  • Meet other eligibility requirements
  • Enrolled at least half-time (six hours) each term 
    

• The Alabama Student Assistance Program (ASAP) is based on exceptional need and availability of funds. Students must be:

  • Pell Grant eligible
  • An Alabama resident
  • Meet other eligibility requirements
  • Enrolled at least half-time (six hours) each term

  • Have applied early
    
    

• Federal Teacher Education Assistance for College and Higher Education (TEACH) Grant: Through the College Cost Reduction and Access Act of 2007, Congress created this program that provides grants funds for postsecondary students who are completing coursework in a federally designated critical-need area of education and agree to serve for at least four years as a full-time highly qualified teacher in a low-income school. Eligible students may receive up to $4,000 per year (amounts are prorated if enrolled less than full-time) in TEACH Grant funds. Failure to complete the four year service agreement will result in the grant being converted to a Federal Direct Unsubsidized Stafford/Ford Loan in which you must repay in full, with interest accrued from the date of disbursement. For more information please click the following link: TEACH Grant

Federal Work-Study

The Federal College Work-Study Program provides students with part-time employment. Eligibility is dependent on financial need and availability of funds. Students earn minimum wage and are paid on a bi-weekly basis for actual hours worked. Students are assigned work based on positions available and need for student assistance. Students must agree to work the hours required by these positions. Work schedules and positions are determined each semester. Work schedules are planned around the student’s class schedule. 

Scholarships

Merit Scholarship Program

AUM offers a variety of scholarship opportunities for entering freshman, community college transfers and currently enrolled students. Most scholarships require full-time attendance and are based on the applicant's academic or extracurricular record, while some are based on financial need. To ensure that you are considered for all scholarship opportunities please complete a Free Application for Federal Student Aid (FAFSA) annually.  For more information on scholarship opportunities at AUM, please click here.