|
Maximum Borrower Amounts
How are borrowing amounts determined?
Perhaps you did not qualify for other types of financial aid,
or you need additional funds to meet the cost of your education. There
are several types of federally guaranteed, low interest rate loans available
to students and parents which depending on your need may be available.
Students may qualify for a Federal Stafford Loan, which comes in the
form of either Subsidized or Unsubsidized. With Subsidized loans, the
federal government pays all interest on the loan while the student is
attending school on at least a half-time basis.
Unsubsidized loans are similar, but the student borrower will be required
to repay all interest that accrued while they were in or out of school.
On both loans, the borrower will have a six-month grace period before
they must begin repayment of their loans.
Finally, there are also Federal Parent Loans (PLUS), which allow parents
of dependent undergraduate students attending college to meet the cost
of higher education. Unlike Stafford loans, PLUS loans begin repayment
once the loan is fully disbursed, and parents are responsible for all
accrued interest.
How much can I borrow in Federal Stafford loans?
The federal government will calculate your specific financial need through
the results of your FAFSA application. Your school then uses these results
to determine how much you are eligible to borrow. Listed below are the
maximum annual and aggregate Federal Stafford loan limits for dependent
and independent students.

PLUS Loans Annual Limits:
PLUS loans have no loan limits. Parents can borrow up to the total cost of
education minus any other financial aid received. The lender determines if
the applicant is credit worthy based on federal criteria as set forth in
the Unified Student Loan Policy.
|