05.07.08 | New Stafford Loan Limits
Increase Annual and Aggregate Stafford Loan Limits
HR 5715, as passed by Congress, will increase the following loan amounts for loans first disbursed on or after July 1, 2008:
* Increases the additional unsubsidized Stafford annual limits by $2,000 for independent undergraduate students, and for dependent undergraduate students whose parents cannot borrow PLUS, but appears to reduce the additional unsubsidized limit for teacher certification to $6,000 for “undergraduate” students
Note - The original legislation also increased the additional unsubsidized Stafford annual limit for graduate and professional students by $2,000, but that provision was later eliminated by an amendment in the House
* Increases unsubsidized Stafford limits for dependent students by introducing additional unsubsidized amounts of $2,000
* Increases aggregate unsubsidized loan amounts for undergraduate dependent students from $23,000 to $31,000 (minus subsidized borrowing) but does not appear to extend additional unsubsidized funds for preparatory coursework or teacher certification for these students.
* Increases aggregate unsubsidized loan amounts for undergraduate independent students from $46,000 to $57,500 (minus subsidized borrowing) .
Does the overall aggregate limit increase correspondingly?
i.e., does the total amount one can borrow stay at $138,000 or does it increase in the amount of the undergraduate increase?
It seams if there is no increase in the aggregate for undergraduates and graduates then grad school limits would actually decrease!
May 26th, 2008 | #