School of Law

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School of Law Financial Aid Presentation
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• Summer 2007 Financial Aid

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• Summer Financial Aid
• Most student exhaust their Federal Stafford Loans
  during the academic year - Fall/Spring.
  
• Alternative Loans only option
• When to apply After pre-register for summer

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• Financial Aid for Fall 2006, Spring 2007, Summer
  2007
  

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• Free Application for Federal Student Aid (FAFSA)
• FAFSA Renewal for 2006-2007
• Beginning Filing January 1, 2006
• Using your 2005 Federal Tax Returns
• Priority Date March 1, 2006

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• Financial Aid
• for Law Students

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• Federal Stafford Loans
• Subsidized vs. Unsubsidized
• Grad PLUS New beginning Fall 2006
• Private Alternative Loans
• Certified vs. Non-Certified
• Bar Study Loans
• Resources
• Institutional Scholarships vs. Funds from
  external sources
  

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• Federal Stafford Loans
• Subsidized Department of Education pays interest
  while borrower is in school and during grace and
  deferment periods
  
• Graduate Annual Limit 8,500
• Unsubsidized Borrower is responsible for
  interest during life of the loan financial need
  not a requirement
  
• Graduate Annual Limit 10,000

Must be enrolled at least half time to be
eligible

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• Federal Stafford Loan Limits
• Total Annual Limit
  18,500
  
• Maximum Aggregate Limit including undergraduate
  138,500
  
• These loan limits are set by Congress not by the
  University.
  
• With the passing of the Deficit Reduction Act
  there are two main changes in the loans program
  
• (1) the interest rate will no longer be variable
  it be set to 6.8 beginning in July 2006 and
  
• (2) loan limits will increase for the 2007-2008
  academic year - Unsubsidized loan limit will
  increase from 10,000 to 12,000 but max
  aggregate will remain the same.

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• Grad PLUS Loan
• Interest rate 8.5
• Based on credit not debt to income ratio.
• More information coming soon!

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• Private Alternative Loans
• Certified
• These loans are not need based, and the annual
  maximum is the difference between the cost of
  attendance and student financial aid already
  borrowed.
• Non-Certified
• These loans are not need based, and the annual
  maximum is set by the lender.

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• Alternative Loan Issues
• Alternative Loan awards can no longer be used to
  confirm schedules.
  
• Alternative Loan funds must be on students
  account to be used to confirm schedule.
  
• Beginning Summer 2006 only one disbursement for
  one term only awards.

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• Bar Study Loan
• Bar Study Loan helps finance bar exam costs, such
  as bar review course fees, bar exam deposits
  and/or fees, as well as living expenses.
  
• Loan Limits 10,000 - 15,000

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• Resources
• Institutional Scholarships
• Scholarships
• Tuition Waivers
• Resources from external sources
• Vocational Rehabilitation
• Scholarship from outside entity (ex. Church or
  employer)
  
• Any aid that is sent thru the University

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• Determining Eligibility

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COST OF ATTENDANCE There are many expenses associ
ated with attending the School of Law. Direct
expenses (tuition and fees) and indirect expenses
(living expenses) are used to determine estimated
expenses that are allowable by federal
regulations. A financial award package is based
on the total anticipated expenses. Actual
expenses may vary.
The financial award package is not meant to cover
all living and education expenses.
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• Definition of Need
• Cost of Attendance (COA)
• Expected Family Contribution (EFC) based on
  FAFSA
  
• Resources
• Financial Need
• Financial Need Amount of Subsidized Loan

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• Consolidation and Repayment

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• Consolidation Federal Loans
• Direct Loans 1-800-557-7392
• http//www.loanconsolidation.ed.gov/
• Alabama Alumni Consolidation Loan 1-877-313-1751
• http//uaaa.alcp.org/
• Benefits
• .25 rate reduction with auto debit ( Both)
• .60 rate reduction with consolidation while in
  grace (Both)
  
• Direct Loan Consolidation students go
  into repayment within 60 days.
  
• 1 rate reduction after of consecutive
  payments (AACL)

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Amount borrowed based only on Federal Stafford
Loans received during law school.
Student may have borrowed additional Federal
Stafford Loans while working on prior degree(s).
Student may also have borrowed Private Alternat
ive Loans.
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• As of 03/06/2006 no information has been forth
  coming with regards to consolidation interest
  rate due to signing of the Deficit Reduction Act
  of 2005. Below is the best guess at this point
• Student loans interest rate on loans consolidated
  prior to July 1st will be based on weighted
  average.
  
• Student loans consolidated after July 1st will be
  based on 6.8.
  

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• Consolidation - Alternative Loans
• Consolidate with current lender contact them
  for more information.
  
• Consolidate with Alabama Alumni Loan
  Consolidation
  
• Consolidate Federal and Private loans together
  you loses all federal benefits
  
• Consolidate Federal loans and consolidate
  Private loan separately can have one bill
  

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• How we communicate

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• Occasionally we communicate with students using
  their BamaMail account. If you prefer not to use
  your BamaMail account, you need to forward your
  BamaMail to your preferred email account using
• https//bama.ua.edu/cgi-bin/cgiwrap/helpdesk/forw
  ard.pl

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• Melissa Burgett
• Coordinator, Loan Processing
• [phone]
• financialaid.law_at_ua.edu