<p>Is it possible for dependent undergrads to received more that the maxium subsidized loan available to them-- if their parents cannot borrow PLUS loans, because they are in bankruptcy?</p>
<p>If parents apply for direct PLUS loans and get denied, the dependent student can borrow additional 4K in federal money - but not subsidized (i.e. it is not going to be zero % interest loan).</p>
<p>Actually, parents are not necessarily turned down for PLUS loans just because they are in bankruptcy. They have to show that they are prohibited from borrowing any more … not all bankruptcies have that caveat. </p>
<p>If a parent applies for and is denied a PLUS loan, freshmen and sophomores are eligible for another $4000 unsub loan … juniors and seniors are eligible to borrow another $5000 unsub. This allows the students to borrow up to the levels for an independent student.</p>
<p>So, if student were able to receive that extra amount, it would be an unsubsidized loan, meaning the interest clock starts immediately. Many thanks.</p>
<p>OP,</p>
<p>one thing that you might not know is that even without extra 4K, not entire maximum loan amount available to student will be subsidized. I believe for freshman out of 5.5K only 3.5K will be subsidized. (Other posters might correct me on the exact amount).</p>