<p>I have ben told to have my son get all the school loans under his name.. but some tell me there's a loan cap?
If so, what's the amount? </p>
<p>federal direct student loans have a cap. For a dependent student the limit is $5500 for a freshman, $6500 for a sophomore, and for 3rd and 4th years $7500. Some low income students may also be eligible for a loan called the Perkins loan however Perkins has very limited funding and is not guaranteed even if a student meets the school’s criteria. </p>
<p>Loans above that would either be parent PLUS loans in the parents’ name or private loans that would have to be taken out or cosigned by the parents.</p>
<p>The only loans your son is guaranteed to get in HIS name only are the Direct Loans. $5500 for freshman year, $6500 for sophomore year, $7500 for junior year, and $7500 for senior year.</p>
<p>If you are low income, your son MIGHT get a Perkins loan each year, but those are usually $3000 or less. These are NOT guaranteed to be awarded to him.</p>
<p>Any loans beyond that YOU would need to either cosign, or take yourself.</p>
<p>How much in loans do you need! Really, the $27,000 or so in Direct Loans over the four years is the max you should take in my opinion.</p>
<p>X posted with Swimcatsmom…and I agree with her!</p>