Student Loan

Posted: 12 Jul 2010 03:39 AM PDT

Determining subsidized Stafford loan eligibility and limit is important issue while it comes to apply for this federal student loan. These student loans are awarded on the basis of financial need. So the limit or amount of loan depends on the information you provide on the FAFSA (Free Application for Federal Student Aid). Stafford loans provides benefits for fixed interest rate about 6.8% or lower since July 1, 2006 and no payments while in school at least half-time. Yes, Department of Education will cover all interest charged during the period of enrollment and for the six month grace period after graduation.

So are you eligible for a subsidized Stafford student loan? Of course, there are strict subsidized Stafford loan eligibility requirements and borrowing limits on Stafford Loans. As long as you are enrolled at least half time in an eligible program of study, you are deserved to apply this student loan and get financial aid on the basis of financial need.

Subsidized Stafford loan limits vary depending on a student’s year in school and on whether they are considered a financially dependent or independent student as well as your grade level. The school’s financial aid office will determine a student’s eligibility for a subsidized or unsubsidized loan. For instance, if you are dependent senior or junior students, you will get around $7,500.

The formula to determine Subsidized Stafford loan eligibility and limits that I get from the file of FFELP Loan Amount Eligibility Scenario is as follows:

Cost of Attendance – Expected Family Contribution – Financial Assistance = Calculated Need
(Loan Eligibility)

Please keep in your mind that the government determines dependent and independent student status. So annual subsidized federal Stafford loan limit may vary, it is depending on your chosen discipline.

Source: scholarships.com