<p>Can someone please explain the different student and private loans?
Like the limits per year and everything</p>
<p>Thanks</p>
<p>Stafford loans are loans in the student’s name only. Anyone completing a FAFSA can take out a Stafford loan. Amounts are:</p>
<p>Freshmen $5500
Soph $6500
Junior $7500
Senior $7500</p>
<p>If you are low income, you might also qualify for a Perkins Loan in your own name. These usually are about $3000 a year…max.</p>
<p>Parents can apply for the Parent Plus Loans…up to the cost of attendance.</p>
<p>Any other loans would be private loans and the amounts would be up to the lenders. As a student, you would need a cosigner for any private loans you take out.</p>
<p>Are there any requirements for parent plus loans</p>
<p>Parents have to be able to qualify for the Parent Plus loans…but they need to remember that they need to qualify for ALL four years. Sometimes they can qualify in the first year…or two…but then their debt is too much to qualify in subsequent years.</p>
<p>I know you aren’t asking for this advice, but if you are anticipating taking out loans to attend college in excess of the $27000 or so in Stafford loans, you really are taking out too many loans. </p>
<p>If you are thinking about taking out loans to pay for most of the cost of attending college, you are REALLY thinking about taking out too many loans.</p>
<p>I have another question about loans. A friends daughter attended 2yrs at comm college and did not take any loans. Then transfered to 4yr state school and took student loans for junior and senior year and the parents took plus loans those two years. The student changed her major and will attend the state school for one more year. Will she be able to get any student loans or will her parents qualify for plus loans since they only took out loans for two years, or is nothing offered for 5th year students? She will be a full time student.</p>
<p>What are discovery loans?</p>
<p>Are you talking about Discover loans? Those are private loans. You would need to pass a credit check…(meaning your credit score would need to be good PLUS you would need to be able to show evidence that you have sufficient income to borrow…and therefore repay). You do have the option of adding a cosigner to these loans to increase your chances of being able to borrow.</p>
<p>It sounds like you are hoping to secure a private loan in your name only. Please be aware that the banking and credit card companies got into quite a pickle with poor lending practices and most have revised their qualification requirements so they are only giving loans to those who have a likelihood of being able to repay them.</p>
<p>The best way for you to find out if you, yourself, will qualify for a loan is to apply for one. The lender will give you a decision about your qualification once you have given them all the info they request. BUT before you take out significant loans (should you be approved), just be aware of the payback policies and amounts you will be expected to pay each month. Conventional wisdom is to borrow as LITTLE as possible.</p>
<p>Are Parent plus loans better than Discover Loans?</p>
<p>You need to look for the best possible interest rate and repayment plan possible.</p>
<p>if im not eligable for financial aid from FAFSA am i still eligible for stafford loans?</p>
<p>
</p>
<p>What do you mean?</p>
<p>If you have not met Satisfactory Academic Progress (SAP) as a college student, you COULD be ineligible for ANY money including Stafford loans.</p>
<p>If you are an international student you would be ineligible for the Stafford Loans.</p>
<p>If your school doesn’t participate in the Stafford loan program (some community colleges do not) you would not be able to get a Stafford loan.</p>
<p>If you have exceeded the aggregate amount allowed for Stafford loans, you would be ineligible for more Stafford loans.</p>
<p>IF none of the above apply, and your family income is too high to qualify for need based aid per the FAFSA EFC, then yes, you would still be able to take out the Stafford loans in your name IF your family completes the FAFSA.</p>
<p>Ok thanks for your help, also what do you think is an acceptable amount to take out in loans? Im going to major in accounting then go to law school</p>
<p>Faith, I am not a loan advisor… Just a parent. If you plan to go to law school you want to keep your undergrad loans to a bare minimum. Smarter to have no loans at all if possible. Most law students are paying the full expensive cost of attending law school. There really isn’t much aid except loans for law school. </p>
<p>So, my free advice if you really see law school in your future, go to undergrad where you don’t need loans at all if possible.</p>
<p>njblue, yes she and her parents should be eligible for federal loans.</p>