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). 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. In December 2011, the Consolidated Appropriations Act 2012 (Public Law 112-74) was signed which impacted the Federal Pell Grant Program. Beginning in fall of 2012 students are now limited to 600% of Pell Grant eligibility during their lifetime.  This change affects all students regardless of when or where they received their first Pell Grant.

-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), 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 Troy 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 Student Financial Aid Office. Priority is given to students with the lowest EFC, determined by information provided on the Free Application for Federal Student Aid (FAFSA), 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 Troy University.

Federal Perkins Loan Program provides low-interest loans to help undergraduate and graduate students with exceptional financial need pay for their higher education. The general loan limits depend, in part, on the student’s year in school. Students attending school at least half-time do not begin repaying their loan until nine months after they graduate, leave school, or drop below half-time status. Less-than-half-time students may have a different grace period. Borrowers have up to 10 years to repay the loan. Troy University has limited access to Perkins Loan funds. Priority is given to students with the lowest EFC, determined by information provided on the Free Application for Federal Student Aid (FAFSA), who also receive Federal Pell Grants. There is no guarantee that every eligible student will receive a Perkins Loan, so it is important to apply early to have a better chance. Perkins Loans are based on the availability of funds at Troy University. If you have been awarded a Perkins Loan, you may download, print, complete, and return the signed Perkins Promissory Note.

Federal Stafford Loans - Troy University does participate in the Federal Direct Stafford Loan Program which includes the following federal programs:  

Stafford Loan Rates:

Interest Rates for Direct Loans First Disbursed on or After July 1, 2015
Loan Type Borrower Type Loans first disbursed on or after 7/1/15 and before 7/1/16 Loans first disbursed on or after 7/1/16 and before 7/1/17
Direct Subsidized Loans Undergraduate 4.29% 3.76%
Direct Unsubsidized Loans Undergraduate 4.29% 3.76%
Direct Unsubsidized Loans Graduate or Professional 5.84% 5.31%
Direct PLUS Loans Parents and Graduate or Professional Students 6.84% 6.31%

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. 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. 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.

Are there any other fees for federal student loans?

Most federal student loans have loan fees that are a percentage of the total loan amount. The loan fee is deducted proportionately from each loan disbursement you receive. This means the money you receive will be less than the amount you actually borrow. You're responsible for repaying the entire amount you borrowed and not just the amount you received.

The chart below shows the loan fees for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after Oct. 1, 2015.

Loan Type First Disbursement Date Loan Fee
Direct Subsidized Loans and Direct Unsubsidized Loans On or after 10/1/15 and before 10/1/16 1.068%
On or after 10/1/16 and before 10/1/17 1.069%
Direct PLUS Loans On or after 10/1/15 and before 10/1/16 4.272%
On or after 10/1/16 and before 10/1/17 4.276%

Loans first disbursed prior to Oct. 1, 2015, have different loan fees.

There are no loan fees for Perkins Loans.

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, Troy 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 or term 2.

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/Term 1-2 and Spring Semester/Term 3-4 and are disbursed after the drop/add period for each term. Students who will be attending Summer/T5 are expected to save funds out of their loan awards for that purpose.
  • Loans are disbursed to your account based on your enrollment on the first day after the end of free drop/add. If you added courses after that point, have your site advisor notify the financial aid office.
  • Students who begin in a term other than Fall/T1 will need to complete a Partial Year Loan Request Form; this is not a Summer/T5 request form.
  • Students who have remaining eligibility may request to use that eligibility in Summer/Term 5 by applying for Summer 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. If you are offered the PLUS Loan and you accept it, you will be sent a separate loan application for your parents to fill out and return to the Student Financial Aid Office for certification. Parents must complete the Free Application for Federal Student Aid (FAFSA).

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.

-Federal PLUS Loans for Graduate Students - GRAD PLUS Beginning July 1, 2006 graduate students are eligible to borrow under the GRAD PLUS Loan Program up to their cost of attendance minus other estimated financial assistance. The terms and conditions applicable to Parent PLUS Loans also apply to Graduate PLUS loans. These requirements include a determination that the applicant does not have an adverse credit history. The lenders will defer repayment while student is in school. Applicants must complete the Free Application for Federal Student Aid (FAFSA). They also must have applied for their annual loan maximum eligibility under the Federal Subsidized and Unsubsidized Stafford Loan Program before applying for a Grad PLUS Loan.

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/ , 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.

Graduate Assistantships

This assistantship/fellowship program is designed to aid in the successful completion of the degree pursued and to enhance career opportunities through applied professional experiences.

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 Financial Aid Office at 334-670-3701. In addition, the Military Officer's Assoc. of America (MOAA) offers interest-free loans. The most common Veteran programs utilized at Troy University are listed below:

  • Military Tuition Assistance
  • PL 815 - Chapter 31
  • AL GI - Chapter 35

3rd Party Billing

Troy 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 Amanda Raiti at (334) 670-3880.

  • 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. Troy University accepts all pre-paid college programs. Below are the most common programs utilized at Troy University.
  • 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.
  • 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. 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 Troy University business office, which draws down the Education Award and applies it towards the student's account.
  • State Programs
    The most common state programs utilized at Troy University are listed below. For reference of a program not listed, please contact the Troy University Office of Financial Aid.

    • AL Rehabilitation
    • OCAP
    • WIA/Job Training
    • AL Industry Training
    • TRA/Job Training
    • AL COM Fire Fighters/Policeman
    • Alabama GI - If you are the child, spouse, or widow(er) of a service related disabled or deceased Alabama veteran, you may qualify for the free tuition, instructional fees and required books when you attend any state supported college located in Alabama. Veterans Service Officers of the Alabama Department of Veterans Affairs maintain an office in each county of the State. They can furnish information and assist in filing application for educational benefits. You may also receive additional information by writing: Alabama GI Dependents' Scholarship Program, Alabama Department of Veterans Affairs, P.O. Box 1509, Montgomery, AL, 36102-1509 or phone (334) 242-5077. You will need to obtain a document to provide to 3rd party billing.

Questions or comments regarding 3rd party billing?

Contact Amanda Raiti at (334) 670-3880.

Scholarship Programs

Beginning freshmen must apply during their senior year of high school or prior to August following high school graduation. Transfer students must apply during their tenure at their individual institutions from which they are transferring and must complete two years at the junior/community college. Awards will be based on post-secondary activities. Qualified students must accept and utilize the scholarship program prior to attendance at Troy University or any four-year college.

More information about scholarships is available in the Scholarship Information Page.

Additional Scholarship Programs

Outside scholarships are listed at the end of the Scholarship Page.

Outside scholarship searches can be completed at www.fastweb.com and www.finaid.org.

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