Can someone explain how some students are able to take out over 10K+ in student loans per year? The maximum amount I’ve been getting so far is $5500 and I read that’s the maximum amount you can take out per year. Having said that, would I be able to work with a financial aid office to let me take out more in loans if I cant pay for the rest?
The maximum amounts of federal direct loans that a student can take out are as follows:
Freshman year $5,500 ($9,500 if Parent Plus loan was applied for and denied)
Sophomore year year $6,500 ($10,500 if Parent Plus loan was applied for and denied)
Junior year $7,500 ($12,500 if Parent Plus loan was applied for and denied)
Senior year $7,500 ($12,500 if Parent Plus loan was applied for and denied)
A financial aid office cannot authorize a federal direct loan higher than these amounts. A school may have its own student loan program. In all likelihood, any other type of loan with your name on it would require a credit-worthy co-signer (unless you have the sufficient income, credit history and/or collateral to qualify for the loan on your own).
If the student’s parents are denied for a Plus loan, the student can take an additional $4-5k in direct loans, so $9500-$12500 per year. There also were Perkins loans, so some who took over $10k had those.
Some states have student loan programs.
In the past…some kids also got Perkins Loans.
Also, some kids have private loans co-signed by parents.
What happens if you need to loan more to go to the school you want…
Do you mean what happens if you need to borrow more to go to the school you want?
The answer to that question depends…
In your case, you would need at least $25,000 a year in loans to attend Parsons. You would need a cosigner for those loans…that would be your parents. You would be on the hook for $100,000 plus interest in loans…for an undergrad degree. My opinion…that is way too much! But it’s a family decision. Keep in mind that you would be graduating and have well over $1000 a month in college loan payments. That’s a huge amount.
Ya… thank you so much! I don’t know if It will happen but I will keep dreaming!
where I can find interest rate on above loans?
Interest rates for government loans (direct loans to students, PLUS loans for parents) are released every year in June for the next school year.
Do NOT take such loans for an art school degree. Federeal loans (5.5k) only and if possible avoid even those.
To develop as an artist after your training in college is freedom.
Artists make very little money. With that many loans, uou’d be tied for years, unable to follow your art where it takes you, stuck in any job you could take to pay them off, unable tonseize opportunities. And considering the federal loans take 10 years to pay abck if you make reasonable money, imagine how long it’d take for you to pay back the level of loans you’re talking about!
What other choices do you have? Any choice that involves little or no debt even from federeal loans?