<p>What is the maximum amount of subsidized and unsubsidized student loans that can be taken out freshman year? Isn't it Stafford loans at $3,500 subsidized and $2,000 unsubsidized? Our AGI is around $75K. If they determine we have need, will the schools offer the full Stafford amounts or only a certain portion? We don't have any savings and will be unable to use our home equity due to the housing market as well as inability to incur a higher mortgage payment each month.</p>
<p>Is the Stafford the only loan that does not require immediate repayment?</p>
<p>I appreciate your help. I'm chronically ill and I'm trying to help our D as much as possible. Thank you.</p>
<p>The maximum Stafford for a freshman is $5,500. Of this $0- $3,500 may be subsidized depending on 'need'. If there is no 'need' then the full amount of $5,500 may be unsubsidized. </p>
<p>The formula for eligibility for the subsidized Stafford is: Cost of Attendance (usually higher than the actual tuition/room/board due to the inclusion of miscellaneous costs/fees - often can be found as COA or budget on the school's website) - Expected Family Contribution - Financial Aid (grants, scholarships, and work study that is awarded before loans) = Need. If the Need is $3500 or more, a subsidized loan of $3500 is awarded. If the Need is less than $3500, a subsidized loan is awarded in the amount of the Need. COA-EFC-FA=Need.</p>
<p>Now comes the trickier part: The eligibility for unsubsidized Stafford loan is COA - Financial Aid (including the subsidized Stafford loan & any work study awarded after the subsidized loan) = eligibility for unsubsidized Stafford (but can't exceed $5500 for freshman year). BUT ... the amount you can borrow depends on a couple things. I was going to give some examples, but it gets much too confusing (I made a mistake in my explanation so decided it's not necessary to explain in that much detail!). Suffice it to say that not everyone gets to borrow the full $5500 because the COA-FA might be too low, and the mix depends on how much subsidized Stafford you get. </p>
<p>Also ... if the parent tries to borrow a PLUS loan and is turned down due to bad credit, the student is eligible to borrow an extra $4000 in unsubsidized Stafford.</p>
<p>In answer to your other question, the Stafford is not the only loan that doesn't require immediate repayment. The Perkins loan is similar to the Stafford in that regard, although it's actually even "better" - lower interest rate! But Perkins loans are not available at every school & not to every student - they are awarded to the neediest of the students at that particular school, and they are actually divvied up by the school. There is no way to know if you you'll get one until the actual aid awards, though.</p>
<p>There may be some schools that run their own supplemental loan programs, as well. For practical purposes, the Stafford is the only one you can be sure will be available that has deferred repayment. The PLUS is probably the next best thing to borrow, although it does begin repayments soon after disbursement.</p>
<p>Thanks Swimcatsmom and Kelsmom for the great info. I'll be investigating the FinAid loan page and doing some Stafford calculations based on estimates. I appreciate the help.....it's all so confusing the first time around!</p>