Financial Aid and Student Loans in Alabama

In 2019, the average student loan debt in the state of Alabama stood at $35,674 (an increase of 3.3 percent from the previous year). With an average cost of attendance of $29,469, 51% of Alabama students graduate with student loan debt.

If you are thinking of attending school in Alabama, several options can help you to pay for your education. You may also need to explore scholarship opportunities and grants that will reduce your cost of borrowing.

Scholarships and grants make college more affordable, which enables you to pursue the education you need with minimum accrued debt. 

As part of our state by state guide to financial aid and student loans, below we’ve put together a centralized list of scholarships, grants, and student loans in Alabama.

What Scholarship Programs Does Alabama Have?

Alabama has some excellent scholarship opportunities for high school seniors and college students, including:

Central Alabama Community Foundation

The Central Alabama Community foundation has put together a resource that organizes Alabama scholarships by region (Central, Southeast, Elmore County, and Autugua) as well as by age (high school students, graduation seniors, college students). Many of the scholarships listed are on the smaller side (only 1-4 recipients), but these scholarships do occasionally go unclaimed, so check them out to see if you’re eligible.  

The Ronnie Mendheim Memorial Scholarship

Apply for this scholarship if you are a graduate of a Dothan high school. Awards are merit-based and cover academic achievement and proven leadership ability.

2499 Line of Duty Scholarship

  • Total Award: $1500
  • Application Deadline: March 1
  • GPA Minimum: 3.0

The scholarship applies to a graduating high school senior of any public or private high school located in Autauga, Lowndes, Elmore, Montgomery, or Macon. They must plan to attend an accredited 2-year or 4-year university or college.

Applicants must also be interested in a career as a member of the military or a first responder. It can also be a child of any first responder or military personnel.

What Grant Programs Does Alabama Have?

Grants are an ideal way to finance your higher education as you probably won’t have to repay the money. There are some excellent programs available in Alabama that students can take advantage of, including:

The Alabama Student Assistance Program

The program awards eligible students with documented financial need $300 to $5,000 every year. Almost 80 different Alabama educational institutions, including the University of Alabama, participate in the program.

The Alabama Student Grant Program

This program is not need-based, and awards up to $1,200 per year to students at the following independent Alabama institutions: Amridge University, Birmingham Southern College, Faulkner University, Huntingdon College, Judson College, Miles College, Oakwood University, Samford University, Spring Hill College, South University – Montgomery, Stillman College, U.S. Sports Academy, University of Mobile.

Police Officer’s and Firefighters Survivor’s Educational Assistance Program

The assistance program funds tuition, books, supplies, and other fees and costs. It helps eligible spouses and dependents of Alabama firefighters and police officers killed in the line of duty. Eligible awardees must be enrolled in undergraduate study at a public institution in Alabama.

Alabama National Guard Educational Assistance Program

Any Alabama National Guard members are eligible to apply for this assistance program. It funds tuition and fees in any public tertiary educational institution in Alabama.

Students must be active members of the Alabama National Guard and in good standing.

What Student Loan Programs Does Alabama Have?

The state of Alabama does not offer state-sponsored student loans. There are several options to finance your studies if you are planning to attend an Alabama higher education institution, however, including federal, Perkins, private, and no co-signer loans.

Federal student loans

Prospective Alabama students can receive federal financial aid assistance by completing the Free Application for Federal Student Aid(FAFSA).

Private co-signed student loans

There are many private student loan opportunities for those who need additional assistance on top of federal student loans. Many banks, credit unions, and dedicated lending companies offer private student loans, but almost all require a co-signer.

No co-signer student loans in Alabama

Funding U began because we identified thousands of students who were unable to qualify for a private student loan because they didn’t have an eligible co-signer. While we’re no longer the only provider of such loans, we offer no co-signer student loans to career-focused students currently enrolled full time in college. The requirements for receiving a loan are dependent upon the GPA of the student and the graduation rate of the institution they attend. To learn more about our no co-signer student loans click here.  NOTE: Funding U does not offer loans to residents of the state of Alabama.  However, if you are attending a school located in Alabama and are a resident of another state that is eligible you may apply.

What Schools Does Funding U Lend to in Alabama?

Funding U’s no co-signer loans are offered to students at eligible four-year, non-profit, and undergraduate universities. These requirements mean that we do not lend to for-profit schools, 2-year schools, graduate schools, or trade schools.

Our eligibility requirements are based on models that predict how likely a student is to graduate. We have minimum GPA requirements that students must meet and minimum 6-year graduation rates that schools need to be eligible.

Find out more about how we determine our eligibility here.

Below is a table listing all the schools in Alabama that Funding U is currently lending to, with additional details on which grades we are now including based on the school’s six-year graduation rate.

School NameFreshman
6 yr
Grad Rate
Alabama A & M UniversityNoNoNoNo2759
Alabama State UniversityNoNoNoNo3059
Amridge UniversityNoNoNoNo4067
Athens State UniversityNoNoNoNo
Auburn UniversityNoYesYesYes7892
Auburn University at MontgomeryNoNoNoNo3468
Birmingham Southern CollegeNoNoYesYes6875
Faulkner UniversityNoNoNoNo2858
Huntingdon CollegeNoNoNoNo4365
Jacksonville State UniversityNoNoNoNo4274
Judson CollegeNoNoNoNo3558
Miles CollegeNoNoNoNo2450
Oakwood UniversityNoNoNoNo4870
Samford UniversityNoYesYesYes7687
Selma UniversityNoNoNoNo233
Spring Hill CollegeNoNoYesYes5979
Stillman CollegeNoNoNoNo2952
Talladega CollegeNoNoNoNo2464
The University of AlabamaNoYesYesYes7287
Troy UniversityNoNoNoNo4370
Tuskegee UniversityNoNoNoNo4268
University of Alabama at BirminghamNoNoYesYes5884
University of Alabama in HuntsvilleNoNoYesYes5282
University of MobileNoNoYesYes5069
University of MontevalloNoNoNoNo4978
University of North AlabamaNoNoNoNo4676
University of South AlabamaNoNoNoNo4478
University of West AlabamaNoNoNoNo3166

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