<p>I have read/heard tha stafford loan amounts will be increased for fall 2006--Is this true? </p>
<p>If so, why have the f.a. packages my S rec'd so far not shown this increase?</p>
<p>..........</p>
<p>I think it goes into effect on July 1st 2006</p>
<p>According to my daughter's financial aid office (GW) Congress is in the process of revising the amounts for Stafford loans...meaning they had yet to vote before we received renewal packets, but it is expected to pass. the new amounts, according to the office, are expected to be $3500 for freshman, $4500 for sophomores and the junior and senior year levels will remain at $5500. We were advised to apply for the higher amount and they would determine our eligibility when they certified the loan. Probably some financial aid offices were waiting for the final vote and will adjust upward as loans are processed during the summer. Hope this helps.</p>
<p>In the past, loan interest rates fluctuated. Now they are being fixed to a rate higher than the current interest rate--but this wil remain fixed.</p>
<p>Starting on July 1, 2007, Stafford Loans allow dependent undergraduates to borrow up to:
$3,500 their freshman year (up from $2,625)
$4,500 their sophomore year (up from $3,500)
and $5,500 for each remaining year </p>
<p>(independent students and students whose parents have been turned down for a PLUS loan can borrow an additional unsubsidized $4,000 the first two years and $5,000 the remaining years). </p>
<p>Graduate students can borrow $20,500 per year (up from $18,500), although only $8,500 of that is subsidized. There are also cumulative limits of $23,000 for an undergraduate education and a $65,500 combined limit for undergraduate and graduate. </p>
<p>(For independent students and for students whose parents were denied a PLUS loan the cumulative limits are $46,000 and $138,500, respectively. Some medical school students may be able to borrow up to $40,500 a year (up from $38,500) and $189,125 total.)</p>
<p>Sybbie: You mentioned borrowing "up to".....Can you borrow less than the full amount? Do you have to borrow the full amount and then immediately pay it back? We'd like to keep our DD debt to a minimum and think we'll need only a couple thousand. I'd appreciate any insight from those of you who've been through this.</p>
<p>So...I just consolidated my d's loan, based on advice posted here from the WSJ. After reading their comments re the Stafford, I had pretty much decided it was not a loan I wanted to have her take out in the future. All of this is based on the loan's having a MUCH higher interest rate after July 1, according to the WSJ. Comments?</p>
<p>OhMother : it means that the colleges can UP your D's loans to the full federal limit ( she does not pay them back until she stops school ) per year and it also means the either the tuition will go up at most colleges and/or that they will take away more grants from the finnancial aid packages.</p>
<p>The college can also stick you with a PARENT PLUS loan which means an immediate credit verification online and you can borrow up to full amount of education for her but those payments have to be made immediately .</p>
<p>If you have bad credit or loads of debts , don't worry . They still will give you a PLUS .</p>