Aid Pkg. ?? Stafford Loans??

[novice07]

<p>Could someone explain to me what it means to have a Stafford subsidized loan amount and a Unsubsidized loan amount on the same financial aid offer. Is the amount they’ve listed under these loans the total amount that I can borrow?</p>

<p>Also, is there a limit to the amount a student can borrow, in their name, with a co-signer?</p>

[swimcatsmom]

<p>Yes you can have both a subsidized loan and an unsubsidized loan in the same package. Subsidized loan the government pays the interest antil after the ‘grace’ perios. Unsub you are responsible for the interest from day 1 though repayment of the capital does not start until after the grace period. There is a limit to the amount you can borrow through Stafford loans. From finaid.org:

Starting on July 1, 2007, Stafford Loans allow dependent undergraduates to borrow up to $3,500 their freshman year (up from $2,625), $4,500 their sophomore year (up from $3,500) and $5,500 for each remaining year (independent students and students whose parents have been turned down for a PLUS loan can borrow an additional unsubsidized $4,000 the first two years and $5,000 the remaining years). Graduate students can borrow $20,500 per year (up from $18,500), although only $8,500 of that is subsidized. There are also cumulative limits of $23,000 for an undergraduate education and a $65,500 combined limit for undergraduate and graduate. (For independent students and for students whose parents were denied a PLUS loan the cumulative limits are $46,000 and $138,500, respectively. Some medical school students may be able to borrow up to $40,500 a year (up from $38,500) and $189,125 total.)

</p>

<p>Finaid has good info on loans at <a href=“http://www.finaid.org/loans/studentloan.phtml[/url]”>http://www.finaid.org/loans/studentloan.phtml&lt;/a&gt;&lt;/p&gt;

[novice07]

<p>Thank you for all the info.</p>

<p>I knew someone here could point me to the right link for additional details.</p>