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All federal loan programs have specific borrowing limits. With these caps in place, it is highly unlikely that your child will be able to borrow enough to cover the full cost of tuition.
|
| Loan Type |
Annual Limits |
Borrower |
Lifetime Limits |
Needs Based |
Interest Treatment While Enrolled in School |
Perkins
|
$4,000 |
Student |
$20,000 |
Yes |
None accrues
|
Combined
Base Limit for Subsidized/ Unsubsidized Stafford |
$3,500 year 1
$4,500 year 2
$5,500 years 3-5 |
Student |
$23,000 |
Subsidized -Yes
Unsubsidized - No
|
Subsidized - None accrues
Unsubsidized - Charged, but can be deferred |
| Additional Unsubsidized Stafford |
$2,000 year 1 -4
|
Student |
$8,000 |
No |
Charged, but can be deferred |
| Federal PLUS |
Cost of attendance minus any aid awarded |
Parent |
N/A |
No |
Charged, but can be deferred |
Many different loan programs are available, but they fall into two main categories. Needs-based loans, as the name implies, go to students displaying the greatest need. Non-needs-based loans are available for virtually everyone completing a FAFSA form. The needs-based programs offer lower rates, reduced fees and better terms than the non-needs-based programs. |
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