Stafford Loan Limits

Stafford loan limits for dependent undergraduates

• up to $2,625 for a first-year student
• up to $3,500 for a second-year student
• up to $ 5,500 for a third-, fourth-, or fifth-year undergraduate or a student who already has an associate or baccalaureate degree and who is enrolled in an undergraduate program that requires an associate or baccalaureate degree foradmission.

These loan limits represent the total of all subsidized andunsubsidized Stafford Loans a dependent undergraduate student mayborrow at each level of study. A dependent undergraduate student who takes out both subsidized and unsubsidized Stafford Loans must not exceed the annual and aggregate limits allowed under the Stafford Loan Program.

Uunsubsidized Stafford Loan limits equals the difference between the borrower’s COA for the loan period and the borrower’s EFA (which includes any subsidized Stafford Loan amount he or she will receive).Unlike Pell Grants, it is possible for a student to get a Stafford (and the parent to receive a PLUS) at more thanone school for the same period.

However, the second school would have to eliminate living costs from the cost of attendance, because those were already accounted for in the first loan.

The second school would also have to count the loan at thefirst school as “estimated financial assistance.” If the secondschool only finds out about the situation later, and it turns outthe student received more than the annual maximum, the second school should adjust its aid package to the student to eliminate the over borrowing. If the school is unable to eliminate the overpayment, it must report it to the lender.

The lender will demand payment from the borrower, who can pay the amount in full or make arrangements satisfactory to the lender to repay that amount over a longer period.

You can find out more here Stafford Loan Limits and Information