Understanding the Stafford & Parent (PLUS) Loans
Parents often ask us why their son or daughter can’t borrow more from the Stafford Loan. Federal regulations limit how much a student can borrow on their Stafford Loan. Recent changes are in red type.
• Base annual loan limits (combined subsidized and unsubsidized):
– $3,500 for 1st year undergraduates
– $4,500 for 2nd year undergraduates
– $5,500 for each remaining undergraduate year
•Additional unsubsidized loan eligibility for independent undergraduate, graduate, and dependent students whose parents are unable to borrow (denied on) the PLUS Loan:
– $4,000 per year for 1st and 2nd year undergraduates
– $5,000 per year for remaining years of undergraduate study
Eligibility is based on a parent passing a credit check and the maximum amount a parent can request is the “Cost of Attendance” minus the financial aid that the student is receiving. For example, if the cost of attendance is $18114 and financial aid amounts to $10,000, then the PLUS Loan eligibility would be $8114.
Repayment of PLUS (for PLUS Loans on/after July 1, 2008)
Parents who wish to postpone PLUS payments are now able to delay their payment on new PLUS Loans until 6 months after the student enrolled---they would need to contact lender for details/procedure.
For more information on financial aid visit our main page at: /Departments/Admissions/FinancialAid/