Types of Aid
Auburn Montgomery offers students a variety of financial assistance:
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 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 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, he is contacted to schedule an entrance interview before each term. Once a student pre-registers and completes the entrance interview process, the loan is paid directly to his account approximately 10 days before the term begins. Any remaining funds are mailed to the student in 7 to 10 days. When a student graduates or leaves AUM, an exit interview with Cashier Office is required.
The Federal 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 a Federal 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. (FORM ONLINE?)
Alternative Loans are available for students ineligible for federal 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 Stafford Loans or Parent Loans, or have exceeded the annual or cumulative loan maximums.
Contact the Financial Aid Office for lenders who provide alternative loans. Loan amounts may not exceed estimated costs and/or unmet need remaining after other financial aid is considered.
Loan Disbursement Rules
Lenders will disburse funds electronically to AUM to be paid toward your student account. Lenders may not, however, disburse funds for first-time, first-year undergraduate student borrowers 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 will be mailed by the lender and must be completed, signed and returned to the lender to complete the loan approval and disbursement process.
Students must also complete an on-line Federal Stafford Loan Entrance Interview before funds can be disbursed at the Kentucky Higher Education Assistance Authority (KHEAA) site.
Loans approved for a single semester are disbursed in two equal payments: the first at the beginning of classes and the second at mid-term. Lenders usually notify you of the disbursement dates and amounts at the time of loan approval.
Student loans are awarded on the basis of class level or hours completed and dependency status:
Dependent Undergraduates | Combined (Subsidized & Unsubsidized) as of2008-09 |
Freshman (up to 28 hours) | $5,500 (no more than $3,500 in subsidized) |
Sophomore (29 to 58 hours) | $6,500 (no more than $4,500 in subsidized) |
Junior/Seniors/2nd Bachelors (58 hours or more) | $7,500 (no more than $5,500 in subsidized |
Independent Undergraduates | Combined (Subsidized & Unsubsidized) as of 2008-09 |
Freshman (up to 28 hours) | $9,500 (no more than $3,500 in subsidized) |
Sophomore (29 to 58 hours) | $10,500 (no more than $4,500 in subsidized) |
Junior/Senior/2nd Bachelors (58 hours or more) | $12,500 (no more than $5,500 in subsidized) |
Graduate or Professional | $20,500 (no more than $8,500 in subsidized) |
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.
AUM's Lender Options
You are free to select any lender that participates in the Federal Family Educational Program (FFELP). For your convenience, we have provided a list of Recommended Lenders that were selected by AUM based on customer service, borrower benefits and participation in our electronic process.
After submitting your lender choice and award notification to the Financial Aid Office you will be mailed a Federal Stafford Loan Master Promissory Note (MPN) from the guaranty agency, Kentucky Higher Education Assistance Authority (KHEAA). Complete the Borrower Information Section, sign, date and mail note to the lender in the envelope provided. You may also sign your MPN electronically on the KHEAA website at www.kheaa.com. You will need your federal PIN to complete the MPN electronically.
Back to Top
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 $450 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 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:
- Eligible for a Federal Pell Grant
- Have applied early
- Be an Alabama resident
- Meet other eligibility requirements
- Enrolled at least half-time (six hours) each term
- Alabama Foster Youth Grant Program-Chafee ETV Program provides assistance to Foster Youth who plan to go to college, enter vocational or skill training. The Alabama Department of Human Services has launched a new financial aid program for children who have been in the state’s foster care program — Chaffee Foster Care Independence Program.
- The Alabama ETV (Education Training Voucher) Program, provides up to $5000 in grant aid to assist foster youth in their efforts to continue their education at an eligible public or private non-profit postsecondary institution — either college level or technical training. Awards may include tuition and fees and other educationally related expenses. Awards must be coordinated with other financial aid and not exceed attendance costs. Attendance cost allowances may be made for computer purchases, child care, health insurance and other expenses at the discretion of DHS and the Financial Aid office. Eligible students must:
- be under 21 and
- have been in foster care until their 18 birthday or adopted out of foster care after their 16 birthday
Awards may be renewed through age 23 if recipients are continuously enrolled and making satisfactory academic progress. Awards may be made to currently enrolled students and students planning to enroll this Fall. To apply:
- 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 EACH Grant funds. Failure to complete the four year service agreement will result in the grant being converted to a Federal Direct Unsubsidezed Stafford/Ford Loan in wich you must repay in full, with interest accrued from the date of disbursement. For more information please click the following link: Teach Grant.
Back to Top
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.
Back to Top
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.
Back to Top
AUM provides work opportunities on-campus and with Montgomery-area employers through the Career Development Center (CDC). The CDC provides job information, on-line job applications and co-op job registration information.
Back to Top