Maximize Stafford
Loan
Stafford
Loan Maximum Amounts
The Stafford
Loan program isn't designed to pay 100% of your college education
expenses but it can take a big chunk of the burden off of your
shoulders.
There
are two types of Stafford Loan programs; Subsidized and Unsubsidized.
A subsidized Stafford loan is one where the U.S. Government pays
the interest on the loan while you are enrolled in school and
for up to six months after you graduate. Six months after you
either graduate or leave school for any other reason, the subsidy
stops and you become liable for the interest from that point on.
The interest
rates are subject to change once per year on July 1st. There are
actually two interest rates. The lower one applies while you are
attending college and then it goes up after you graduate.
You have
up to 10 years after graduating or leaving school to pay the loan
off. The minimum annual payment is $600 per year or $50 per month.
You
must meet federal income guidelines to qualify for a subsidized
Stafford Loan as well as all of the other requirements that we
listed on our Stafford
Loan Requirements page.
There
are no income guidelines for an unsubsidized Stafford Loan but
you still must meet all of the other eligibility requirements
that we listed on our
Stafford Loan Requirements page.
An unsubsidized
Stafford Loan works essentially the same way as a subsidized one
does except you are responsible for the interest payments from
day 1.
Both subsidized
and unsubsidized Stafford Loans are issued without any credit
check so you are not penalized if your credit is not A+.
Stafford
Loan Limits
There
are a few factors which affect your Stafford Loan limits. The
first factor is whether you are a "dependant" or an
"independent" student. All this means is that dependant
students have parents or guardians who are helping to foot the
bills while independent students are on their own.
The next
factor that affects the Stafford Loan limit is what year of college
you are in. The limits go up as your progress from Freshman through
Graduate student levels. There are maximum loan limits that come
into effect over your lifetime as a student.
The next
factor is the amount of financial aid you are receiving from other
sources. These amounts are taken into consideration when calculating
your loan eligibility limits.
The final
deciding factor is your school's financial aid office. They can
approve, disapprove, or limit your eligibility. The decision of
the school is final and may not be appealed to the Stafford Loan
administrators.
Here is
a chart which explains the Stafford Loan Limits which was supplied
courtesy of the Stafford Loan program. Limits are subject to change
so check with your college financial aid office for the latest
information.
| |
Dependent Undergraduate Students |
Independent Undergraduate Student |
Graduate/Professional Student |
|
$2,625 |
$6,625–No more than $2,625 of this amount may be in subsidized loans. |
$18,500–No more than $8,500 of this amount may be in subsidized loan. |
|
$3,500 |
$7,500–No more than $3,500 of this amount may be in subsidized loans. |
|
$5,500 |
$10,500–No more than $5,500 of this amount must be in subsidized loans. |
|
$23,000 |
$46,000–No more than $23,000 of this amount may be in subsidized loans. |
$138,500—No more than $65,500 of this amount may be in subsidized loans.
The graduate debt limit includes Stafford Loans received for undergraduate study. |
If your
term of study is less that a usual "academic year" the
amounts that you may borrow will be less.
That's
the story on Stafford Loan amounts but, as we said, you should
always check with your college financial aid office for the latest
information.
Once
you get that Stafford Loan you're going to want to make the most
of it. Read about Maximizing
your Stafford Loan.
