<p>I was under the impression that the total amount of Stafford loans for a 4th year student is $5500. Daughter's package includes $5500 sub. and an additional $2000. unsub. Tell me this isn't accurate.</p>
<p>My son is a 4th year undergrad student and received the same amounts: subsidized Stafford for $5500 and unsubsidized Stafford for $2000. I didn't think that the amount for a 4th year student increased. I thought the unsubsidized Stafford was just an additional loan given for financial aid.</p>
<p>Here is a link to the Dear Colleague letter that says dependent students may now borrow an additional $2000/year in unsubsidized loans (putting 4th year max at $7500, not $5500):</p>
<p>Unsubsidized loans can be awarded to meet need AND to replace EFC. Remember, you don't have to take them!</p>
<p>Thanks for the link. Did anyone else have this additional 2000 dollars added to the 5500 for 4th year students? I personally am a bit upset about this. We made the decision 3 years ago for our student to attend knowing that she would borrow $17,125 after the 4 years. This is in addition of course to a hefty contribution on our part. At the time we "thought" we knew what we were signing up for. I understand that she doesn't have to "accept" this additional loan. My point is that it would be nice if the grant were increased by that amount. Work study is already included.</p>
<p>Did the school use that extra amount to meet need? Ouch!</p>
<p>I can understand how you feel, Bluejay. It is unfortunately typical for many schools to reduce grant amounts unless they are a specific scholarship that is renewable for 4 years. Typically, each year the package gets less generous with more burden put on the student to come up with more money which in turn puts the pressure on the parent.</p>
<p>my son had that extra 2k as part of the package. when you're trying to add up the numbers to nearly 52K.... even with a 30K scholarship like my son has and my EFC of just over 11K, it is hard. I'm totally thankful for the perkins loan of 2400 and the subsidized stafford of 4500. I plan on paying that 2K and not adding to my son's debt (5900 for freshman year, 6900 for sophomore year).</p>
<p>I'll be taking 'stay'cations for the next few years. You know, vacations where you 'stay' home.</p>
<p>It is true, 4th year students (as well as lower years) are now eligible for an extra $2,000 in Unsubsidized Stafford Loans...However, even though the student is eligible, it doesn't mean they have to use it. However...since the Stafford Loans are in the student's name, the student will have the ability to accept the money without parental approval. For those parents who are trying to budget their child's indebtedness...be sure to discuss this issue with them so they might be discouraged from accepting the extra money if they don't need it. </p>
<p>Keep in mind, though, that this is actually a good thing for many students. Many of my freshman and sophomore students don't get enough funding to cover their tuition...with these additional funds, they will now be able to cover thier tuition without a private loan.</p>
<p>stafford loans are supposed to count as "lowering need"?</p>
<p>Yes. They ARE a government sponsored financial aid program. If you had to go out & borrow that money yourself, your terms wouldn't be so sweet. Someone else (taxpayers) is helping you out.</p>
<p>and unsubsidized ALSO lowers need???</p>
<p>Again, those loans are being guaranteed by the government (taxpayers), kids with no credit history are borrowing them at rates that are kept at a certain percentage rate (rather than being jacked up to reflect the risk involved). </p>
<p>I am not saying it's great. However, it IS still "aid." It beats having to borrow privately.</p>
<p>While I agree that stafford loans are better than private loans I wonder what the lawmakers who made this higher stafford limits intended. Was it to let my d's public uni save $2000 in fin aid grants for every student by giving them an additional $2k in unsub stafford? That is the reality at d's school. That cost each student $2000 per year in additional loans and saved the school $2000 in grant monies. No extra monies or aid was given as a result of the increased loan limits- just less grant. I would have never voted for that, as I believe the burden on the actual students in loans is already too high.</p>
<p>Did anyone read GENERATION DEBT ? The kids will be so racked up with loans for bachelor's degrees they they will not be able to afford to take out grad school loans ( and they will need grad school to get the higher salary to pay back loans ) . Ours was raised too but we figured on it . </p>
<p>My Canadian cousins have it made with tuition there ( very low ) -- plus health insurance .</p>
<p>My daughter was offered that too, and we are trying to decide if we should accept it. Does anyone know what the payment would be if you took all the loans- 3500 year 1, 3500 year 2 , 5500 year 3 and 7500 year 4? </p>
<p>I want to make sure I understand, because I'll be paying her undergrad loans while she goes to grad school ( hopefully for free- keep your fingers crossed for us).</p>
<p>Thanks in advance!</p>
<p>Assuming the current 6.8% interest rate on Stafford loans, and no loan fees (this varies by lender), her monthly payment would be $230.16 for 10 years on $20,000 worth of loans. If the loans are unsubsidized & she doesn't pay interest while in school, though, payments will be higher because interest will be due on the unpaid interest.</p>
<p>Finaid.org has a loan calculator where you can enter the loan amounts, interest rate and number of years and get a payment</p>
<p>FinAid</a> | Calculators | Loan Calculator</p>
<p>if you enter the total of the loans $20,000 at an interest rate of 6.8% (interest rate for unsub Staffords) for 10 years then the monthly payment would be @ $230 (assuming you are paying the interest as you go along so that the debt has not grown larger before you start repaying it).</p>
<p>I thought I had heard that it was about 10% of what was owed, and I appreciate the confirmation. That is a managable amount.</p>