<p>I'm currently planning on commuting to Cal Poly SLO for college in 2016, as it is only about 45 minutes away from me. In order to pay for tuition, books, and other costs, I will need to take out a Stafford Loan. I have a couple questions about that. </p>
<p>My family's EFC is going to be about 13k. My parents will be unable to pay that. If I am living with them, the university says that the COA is 17k. Will they allow me to take out an unsubsidized Stafford Loan in excess of $4,000, which is the COA minus the EFC? If so, am I guaranteed the full amount of the unsubsidized Stafford Loan? </p>
<p>Finally, my parents will be declined for the Parent PLUS loan for the first two years, so I will be able to borrow $9500 and $10500 in my freshman and sophomore years, respectively. After that, they will be eligible and so I will no longer get the increased loans. Since I will be reverting to the limits of a dependent, will I be capped at the dependent lifetime borrowing limit of $31000 once I reach that or will I still be able to take out the max every year? Thanks!</p>
<p>I believe the limit on unsubsidized loans for freshmen is $3500.</p>
<p>If your parents are denied the Plus for the first two years, why are you certain they will be eligible in years three and four?</p>
<p>Is their income less than $80,000? Are you Calgrant eligible? </p>
<p>The limit for Stafford Loans is $5500 for dependent freshmen, but since my parents will be declined it will be $9500 for me. Source: <a href=“What is a Subsidized Student Loan? | Edvisors”>What is a Subsidized Student Loan? | Edvisors;
<p>They will be declined because their credit history will be considered adverse until 2018. According to the requirements, they will become eligible in September of 2018.</p>
<p>Their income was about $78000 last year, but it will be over $80000 next year and in the future.</p>
<p>If the rate of increase of the income cap remains the same, then I should be Calgrant eligible. It pays up to $5400, so it will only cover about 2/3 of the tuition. I’ll need loans to pay for the rest of tuition, books, gas, and food.</p>
<p>Yes…you can get unsubsidized loans in those amounts. I need to read more carefully!! I thought you were asking about subsidized loans.</p>
<p>Do you have any idea whether I would be capped at $31,000 after I go back to the dependent amount?</p>
<p>No. Only the loan amounts borrowed at the dependent level count toward the $31,000. For example, only $5500 of the $9500 counts toward the dependent level of $31,000. Students will be flagged on their FAFSAs when they get close to or over the $31,000 - this will alert the financial aid office to double-check your loans to see whether your close to/over is due to additional unsub due to Parent PLUS denial or if it’s an overaward situation. Since yours would not be an overaward, you would not need to worry.</p>