New Loan Limits

Dear Melanie,

Congress passed a bill last month that, in part, increased unsubsidized annual loan limits for undergraduate students by $2,000. This does not necessarily mean that you will be awarded that entire amount, as student loan amounts are based on your cost of attendance, minus other financial aid and other eligibility criteria. You should receive an award letter in the mail from your school relatively soon advising you as to how much aid you qualify for.

Congress also increased the total, or aggregate, amount that dependant undergraduates can borrow. The aggregate for dependant undergraduate borrowers increased from $23,000 to $31,000, and from $46,000 to $57,500 for independent undergraduate borrowers. If you should happen to reach that limit you will need to pay some of it back before borrowing further federal student loans. Graduate students have higher Stafford limits and no limits for Grad PLUS Loans.

Regards,
Betsy