How much can I borrow? How much can I borrow?

The table below is taken from www.studentaid.ed.gov and shows how much a student can borrow each year in addition to detailing the aggregate limits for the Subsidised and Unsubsidised Stafford Loan.

Year Dependent Student (except students whose parents are unable to obtain PLUS Loans) Independent Students (and de-pendent undergraduate students whose parents are unable to obtain PLUS Loans)
First-Year Undergraduate Annual Loan Limit
$5,500—No more than $3,500 of this amount may be in Subsidised Loans.

$9,500—No more than $3,500 of this amount may be in Subsidised Loans.

Second-Year Undergraduate Annual Loan Limit

$6,500—No more than $4,500 of this amount may be in Subsidised Loans.

$10,500—No more than $4,500 of this amount may be in Subsidised Loans.
Third-Year and Beyond  Undergraduate Annual Loan Limit
$7,500—No more than $5,500 of this amount may be in Subsidised Loans

$12,500—No more than $5,500 of this amount may be in Subsidised Loans.
Graduate or Professional Students Annual Loan Limit
Not Applicable (all graduate and professional students are considered independent)

$20,500 (Unsubsidised only)

Subsidised and Unsubsidised Aggregate Loan Limit

$31,000—No more than $23,000 of this amount may be in Subsidised Loans.

$57,500 for undergraduates—No more than $23,000 of this amount may be in Subsidised Loans.

$138,500 for graduate or professional students—No more than $65,500 of this amount may be in Subsidised Loans. The graduate aggregate limit includes all federal loans received for undergraduate study. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As indicated in the above table, Dependent Undergraduate Students whose parents are unable to obtain the Parent PLUS Loan may be assessed for increased limits of the Unsubsidised Loan.

Independent Undergraduate Students, as determined by the FAFSA, may borrow at increased limits as well.

Graduate PLUS Loan, Parent PLUS Loan or private loans are intended to cover remaining costs above any financial aid awarded (limits shown above) and up to your Cost of Attendance (COA).

Interest Rates

Interest Rates for Direct Loans disbursed on or after July 1, 2016
Loan Type Fixed Interest Rate

Direct Subsidised for Undergraduate Students

3.76%

Direct Unsubsidised for Undergraduate Students

3.76%

Direct Unsubsidised for Graduate/Professional Students
5.31%

Direct PLUS Loans for Parents and Graduate/Professional Students

6.31%

 

 

 

 

 

 

 

 

 

 

 

For detailed information regarding  interest rates, repayment, deferments, forbearance, forgiveness programmes and other questions, please visit the Federal Student Aid website.

Loan Fees

Most Federal Student Loans have loan fees that are a percentage of the total loan amount. The loan fee is deducted proportionately from each loan disbursement you receive. This means the money you receive will be less than the amount you actually borrow. You are responsible for repaying the entire amount you borrowed and not just the amount you received.

Loan Type First Disbursement Date Loan Fee
Direct Subsidised Loans and Direct Unsubsidised Loans On or after 10/1/15 and before 10/1/16 1.068%
On or after 10/1/16 and before 10/1/17 1.069%
Direct Plus Loans On or after 10/1/15 and before 10/1/16 4.272%
On of after 10/1/16 and before 10/1/17 4.276%