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Financial Aid Programs || Oakwood University

Financial Aid Programs

The following is information on the various aid programs. You must submit a FAFSA to be considered for these funds.

Grants
The grants listed below are based on need. These grants are available only to undergraduate students who have not received a previous bachelor’s degree.

-Pell Grants help undergraduate students who have not earned a bachelor’s or higher degree pay for their higher education. The U.S. Department of Education determines who is eligible by using a formula established by Congress and the information provided by the applicant on the Free Application for Federal Student Aid (FAFSA) External link. This will produce an expected family contribution (EFC) number. The amount the applicant receives depends on the EFC, cost of attendance, enrollment status (full-time or part-time), and length of enrollment. Only full-time students may receive the full Pell Grant amount. The grant is prorated for three-quarter, half-time or less-than-half-time enrollment.

-Worthy Student Grant Need-based OU grant awarded to full-time students that are Pell eligible or close to Pell eligibility. Students with 70% of Pell eligibility are not eligible. Criteria may change from year to year. Students with subsidies and admissions scholarships are not eligible.

-ASAP (Alabama Student Assistance Program) Need-based grant. Awarded to in-state students pursuing their first undergraduate degrees. Eligibility: based on exceptional need, availability of funds, and Federal Pell eligibility. Funds are VERY limited. Students are strongly encouraged to meet the March 1 FAFSA priority date.

-Federal Supplemental Educational Opportunity Grants (FSEOG) help undergraduates who hold no bachelor’s or higher degree and have exceptional financial need. Priority is given to students with the lowest EFC, determined by information provided on the Free Application for Federal Student Aid (FAFSA) External link, who also receive Federal Pell Grants. There is no guarantee that every eligible student will receive an FSEOG, so it is important to apply early to have a better chance of receiving a grant. Recipients must be enrolled at least half time. FSEOG awards are based on the availability of funds at Oakwood University.

Federal Work-Study program is designed to encourage students to contribute to their educational expenses while decreasing their debt burden. If you wish to have your eligibility reviewed for this award, please contact the Department where you wish to work and they will follow procedures to determine whether you are eligible. Priority is given to students with the lowest EFC, determined by information provided on the Free Application for Federal Student Aid (FAFSA) External link, who also receive Federal Pell Grants. There is no guarantee that every eligible student will receive or renew a work-study award, so it is important to apply early to have a better chance of receiving a job. Work-Study awards are based on the availability of funds at Oakwood University. More information is available at Student Employment.

Institutional Work-Study This is an agreement between the Institution and the Students to have their pay credited to their Oakwood University student account until they are 100% clear financially, at which time their pay will be deposited in their personal bank accounts. More information is available at Student Employment.

Federal Stafford Loans - Oakwood University participates in the Federal Direct Stafford Loan Program which includes the following federal programs:

Stafford Loan Rates:

Academic Year

Subsidized Fixed Rates
(Undergraduate)

Unsubsidized Fixed Rates
(Undergraduate)

Unsubsidized Fixed
Rates (Graduate)

2010-11

4.50%

6.80%

6.80%

2011-12

3.40%

6.80%

6.80%

2012-13

3.40%

6.80%

6.80%

2013-14

3.86%

3.86%

5.41%

Eligibility: To be eligible for a Stafford loan, you must be a U.S. citizen or permanent resident, not have previous defaults on a federal loan, be enrolled or plan to enroll at least half-time, and maintain satisfactory academic progress.

Subsidized Loans are awarded based on the student’s calculated need from the FAFSA. The interest is paid by the government while at least half-time enrollment is maintained. You are charged a 1.051% origination fee by the Federal government when you borrow; the amount of your loan sent to the school is reduced by that fee. Repayment begins six months after enrollment has ceased or dropped to below half-time status.

Unsubsidized Loans are not based on calculated need, but still necessitates the filing of the FAFSA for eligibility determination. You are charged a 1.051% origination fee by the Federal government when you borrow; the amount of your loan sent to the school is reduced by that fee. Interest rate is a maximum of 8.25% until June 30, 2006. Interest is not paid by the Federal government, and the student is responsible for all interest associated with the loan. Interest payments can be capitalized (added to the loan at repayment) if no payments are made during enrollment. Repayment begins six months after enrollment has ceased or dropped below half time.

Maximum Loan Amounts for Fall, Spring and Summer:

Grade Level as Determined by the Registrar

Credits(1)

Dependent loan maximum borrowed allowed

Independent Loan maximum borrowed amount

First Year - Freshman

0-29

$5,500

$9,500

Second Year - Sophomore

30-59

$6,500

$10,500

Third Year - Junior

60-89

$7,500

$12,500

Fourth Year or more - Senior

90-180

$7,500

$12,500

Each Year of Graduate or Professional Study

N/A

N/A

$20,500


The total maximum outstanding debt allowed is:

Dependent Undergraduate

$31,000 (1)

Independent Undergraduate

$57,500 (2)

Graduate or Professional Student(3)

$138,500 (4)

1. Of the $31,000 no more than $23,000 may be subsidized loans.

2. Of the $57,500 no more than $23,000 may be subsidized loans.

3. Includes any Federal Stafford Loan and/or Federal Supplemental Loans for Students received as an undergraduate.

4. Of the total maximum of $138,500 no more than $65,500 may be subsidized loans. These loan limits are the maximum and must be reduced by other assistance if total cost of education is exceeded. Effective for loans made for periods of enrollment (loan periods) beginning on or after July 1, 2012, graduate and professional students are no longer eligible to receive Federal Direct Subsidized Loans. The terms and conditions of Direct Subsidized Loans received by any student for loan periods beginning before July 1, 2012, for either graduate or undergraduate study, are not affected by this change. The annual loan limit for graduate and professional students remains unchanged at $20,500.

Students must apply with the FAFSA each year beginning in January for the approaching Fall.

LOAN PRORATION FOR GRADUATING UNDERGRADUATE BORROWERS

Per federal regulation, Oakwood University is required to prorate a dependent or independent undergraduate student's annual Stafford loan limits, when they are enrolled for less than a full year and will graduate in the same academic year. This mostly will affect students who will graduate at the end of fall.

Loan Proration Formula:

 

Number of credit hours student enrolled for undergraduate
Number of credit hours in an academic year (24)

x annual Stafford loan limit

More about Federal Stafford Loans

  • Students are awarded the maximum loan eligible for Fall Semester and Spring Semester and are disbursed after the drop/add period for each term. Students who will be attending Summer are expected to save funds out of their loan awards for that purpose.
  • Loans are disbursed to your account based on your attendance as reported by your instructors. If you added courses late, have your instructor notify the records office or amend the reported attendance.
  • Students who begin in a term other than Fall who have remaining eligibility may request to use that eligibility in Summer by applying for Summer by notifying Financial Aid.


Federal PARENT PLUS Loan is for parents of dependent students and is not based on need. Parents may qualify for the PARENT PLUS Loan for the difference between your education costs and the amount financial aid you are awarded. However, parents must have a favorable credit rating in order to qualify for the PLUS Loan. Parents apply for the PLUS loan at www.studentloans.gov External link. Parents must complete the Free Application for Federal Student Aid (FAFSA) External link. Parent PLUS Loans that are disbursed between 7/1/13 – 6/30/14 the interest rate is fixed at 6.41%. The loan origination fee is 4.204% and is deducted from the Direct PLUS loan funds at the time of each disbursement.

The Federal Government pays the interest on the subsidized Federal Stafford Loan until repayment begins. The borrower is responsible for all interest that accrues on the Unsubsidized Federal Stafford and PLUS Loans from the time the loan is disbursed. More detailed information is provided with the loan application. Lenders will defer repayment while student is in school.

When making decisions about accepting loans, we urge you to carefully consider your total loan indebtedness and the amount you will pay on your loan given your expected earnings from your intended career.

Note: All student and parent federal loans that are processed will be submitted to the National Student Loan Data System (NSLDS) https://www.nslds.ed.gov/ External link , and will be accessible by guaranty agencies, lenders, and schools determined to be authorized users of the data system. 

The following is information on other aid programs. You are not necessarily required to submit a FAFSA in order to be considered for these funds.

Veteran Benefits

Students who have served in the Armed Forces may be eligible for Veteran’s Benefits. Check with our Veteran’s Affairs Officer in the Registrar’s Office at 256-726-8464. In addition, the Military Officer's Assoc. of America (MOAA) External link offers interest-free loans. The most common Veteran programs utilized at Oakwood University are listed below:

3rd Party Billing

Oakwood University accepts a variety of pre-paid and third-party college programs, including state programs and veteran programs. These plans differ on specific requirements.

Questions or comments regarding 3rd party billing?

Contact Student Accounts at (256) 726-7383.

  • Pre-paid Programs
    The United States Internal Revenue Code Section 529 affords for eligible tuition programs that offer unique benefits for parents, guardians, and/or others who desire to supply money in advance for a child's college education. Taxpayers can presently pre-pay the higher education tuition costs only under state-sponsored tuition programs. Oakwood University accepts all pre-paid college programs.
  • FL Prepaid College Plan
    The Florida Pre-pay college program is administered through the Florida Prepaid College Board. Each student determines his/her program for out-of-state colleges, whether unrestricted or restricted. For more information, please call 1-800-552-GRAD (4723), or view the web site at http://www.myfloridaprepaid.com External link.
  • AmeriCorps Education Award
    The Americorp Voucher has instructions for the student to follow. If the student needs a voucher, they should contact Americorp. The voucher is 3rd party billing handled through the business office. Here is some information from the Americorp web site: Using the AmeriCorps Education Award External link. After the student finishes their AmeriCorps term, the student must request the AmeriCorps Program Director to submit paperwork, and the National Service Trust will send the student a voucher request form. The student then submits this voucher to the Oakwood University student accounts office, which draws down the Education Award and applies it towards the student's account.

    Questions or comments regarding 3rd party billing?

Contact Student Accounts at (256) 726-7383.

State Programs

Alabama Student Grant (ASG) is non-need-based and requires proof of residency in AL and a separate application. Standard ASG award is approximately $200/year.

Additional State Programs External link

Scholarship Programs

Beginning freshmen may apply during their senior year of high school or prior to August following high school graduation. Transfer students may apply during their tenure at their individual institutions from which they are transferring. More information about scholarships is available in the Admissions Scholarship Information Page.

Additional Scholarship Programs

Additional scholarships are listed at Oakwood Scholarships and Academic Works Scholarships External link.

Outside scholarship searches External link are available for free from College, College Scholarships, and Online Degrees.

 
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