Federal Student Aid
To be considered for federal financial aid, students should complete the Free Application for Federal Student Aid (FAFSA) each academic year at www.studentaid.gov. Professional students are considered independent for financial aid purposes and will not submit parental information.
- Federal Direct Unsubsidized Loans – students who submit a FAFSA are offered a Federal Direct Unsubsidized Loan.
- Beginning with the 2026-2027 academic year, students will be eligible for up to $50,000 in Direct Unsubsidized Loans annually. Award amounts are subject to the overall estimated cost of attendance as well as aggregate and lifetime loan limits.
- Federal Graduate PLUS Loan – students can apply for this loan at www.studentaid.gov to help pay for educational expenses not covered by scholarships or other financial aid.
- The Graduate PLUS Loan Program will be discontinued as of July 1, 2026, which is the beginning of the 2026-2027 academic year. Students who borrow a Federal Direct Student Loan (Direct Unsubsidized or Graduate PLUS Loan) before July 1, 2026, while enrolled in a credentialed program, can apply for a Graduate PLUS Loan for an additional 3 academic years or their expected time to credential, whichever is less.
Federal Loan Limits – Annual Limits
2025-2026 Academic Year $44,944 for MS1 and MS4
$47,167 for MS 2 and MS3 Up to max cost of attendance Up to max cost of attendance Beginning with 2026-2027 Academic Year $50,000 Not available $50,000
| Direct Unsubsidized Loan | Graduate Plus Loan | Total |
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Federal Loan Limits – Aggregate and Lifetime Limits
Prior to July 1, 2026 Not applicable $224,000 Beginning July 1, 2026 $200,000 $257,500
| Aggregate Graduate-Level Limit Includes direct unsubsidized loans for medical school or any other graduate studies | Lifetime Limit Includes direct subsidized and unsubsidized loans for undergraduate and graduate studies |
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Click here to learn more about changes to the federal loan program effective for the 2026-2027 academic year.
Alternative Education (Private) Loans
Alternative education loans are private, credit-based, non-federal loans. With the discontinuation of the Graduate PLUS Loan for new borrowers in 2026-2027, many students may find private loans are the best way to fund additional educational expenses. Students apply directly through a lender. The application process, requirements, and terms for private loans vary by lender. Eligibility is limited to your estimated cost of attendance, less any other aid (including scholarships and federal loans). Students are encouraged to borrow the minimum amount of loans needed to minimize debt.
Selecting a Lender
UAB does not endorse specific lenders, but we provide a historical lender listing through ELM Select at go.uab.edu/altloan. This is not an exhaustive list of lenders, but it is a great place to start your private loan search.
What should I take into consideration when applying for private loans?
There are a number of factors to review as you are exploring private loans. Students can apply to multiple lenders they believe would be a good fit for them. It’s important to compare your loan offers, taking all terms of the loan into consideration. We encourage you to keep these in mind when comparing your options.
Establishing and Building your Credit
Many private loans require students and/or their cosigner to meet a minimum credit requirement. It’s important to establish and continue building your credit for best consideration of loan eligibility and terms.
Application Requirements and Options
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Credit Score – Many private loans require students and/or their cosigner to meet a minimum credit requirement. Credit scores may also impact the terms of your loan, like your interest rate.
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Cosigner – Lenders may require student borrowers to have a cosigner. Even if not required, some students may find it advantageous to have a cosigner for better loan options and terms. Cosigners can be your parent, guardian, another relative, or a willing sponsor. It’s important to understand the responsibilities a cosigner has. Students and cosigners are both listed on the loan, sharing responsibility. The loan will also be included in the cosigner’s credit history.
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Multi-year approval – Some lenders may provide an up-front multi-year approval, with only a soft credit inquiry for future year requests.
Interest Rates and Other Fees
As you are reviewing your private loan options, it’s important to compare interest rates and any additional fees associated with the loan. Lenders will often offer fixed and variable interest options. Variable rates may start low, but the rate can rise or fall as the rate indexes change. Check to see if there is a cap on the interest rate. We encourage you to explore the long-term aspects of these loans and rates to determine which would be best for you. Loans may also have additional fees, including a loan origination fee, that you will want to take into consideration as you are reviewing all terms of the loan.
Loan Limits
Lenders will have varying annual and aggregate, or lifetime, loan limits. UAB students can receive private loans up to their full cost of attendance less any other aid (including scholarships and federal loans).
Repayment Options
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Grace period – a grace period is a time following graduation or certain breaks of enrollment where you are not required to make payments to your loan. This allows you some time to get established before required repayments begin. When available, grace periods vary in length, from 6 months to 3+ years. It’s important to note that interest typically continues to accrue during grace periods.
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Deferment – lenders may offer various periods of deferment, where payments are not required. Interest typically continues to accrue during periods of deferment. Possible deferment options to explore are in-school deferment and residency or training deferments.
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Length of repayment – Repayments lengths vary across lenders, many ranging from 5 years to 15+ years.
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In-school repayment options – Some lenders may require students to begin making payments while currently enrolled in medical school. If payments are not required, students may find it beneficial to make payments, whether a small monthly amount or interest-only payments, to minimize interest and lower your overall debt.
Cosigner Release
Lenders may have the option for cosigners to be released from the loan, typically following a set number of loan repayments by the student. Once a cosigner is released, the loan is then only listed under the student’s name.
Death or Disability Discharge
Determine if the lender offers a death and/or disability discharge.
Refinancing
Some borrowers may find it beneficial to refinance their loans sometime following graduation, providing you with better interest rates and repayment options.
Resources
AAMC FIRST – Federal vs. Private Education Loans
UAB Historical Lender List through ELM Select
Contact Us
Contact Medical Student Financial Services with questions about applying for private loans.
medschoolscholarship@uab.edu
205.934.2332
Schedule a Meeting
Forgivable Loans
Forgivable loans may be a good option for students who are legal residents of Alabama and committed to practicing primary care in the state; other eligibility requirements also apply. Application processes and stipulations vary by loan fund.
Learn more about Forgivable Loans here.
Resources
Free Application for Federal Student Aid (FAFSA)
AAMC: Steps in the Financial Aid Application Process
AAMC: Understanding your Financial Aid Offer
UAB student aid checklist
How to accept federal loans through BlazerNET
View your BlazerNET account summary and/or make a payment
Also visit the UAB Heersink Financial Wellness webpage for comprehensive tools and resources to help you navigate finances throughout your medical school journey.