$36k in unsubsidized stafford loans?

[JamesBond15]

Okay, maybe someone here can explain this because noone else has been able to.

The fin aid letter I received from UVM states that I can get $36,444 in unsubsidized stafford loans and $8,500 in subsidized stafford. How can that be? I thought the limit set by the govt is $32,000 for unsubsidized? I wouldn't be attending UVM so I am trying to get that amount at the school I will be attending. UVM doesn't know how they came to that amount, but said it should be okay to get. The school I will attend doesn't understand how it is possible to get that amount because it is bigger than the max.

Any ideas on what's going on?

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[TMP-SMX]

The max is actually $40,500 for total staffords per 9 month year. Longer school years allow higher amounts.

 

[JamesBond15]

The max is actually $40,500 for total staffords per 9 month year. Longer school years allow higher amounts.

How does the school get that approved for the loans? It seems that the fin aid office at both schools (UVM and new school) don't know that. They just rely on the computer. What if UVM had someone smart code the program while the new school didn't but is eligible as well for it.

 

[Doctor Bagel]

How does the school get that approved for the loans? It seems that the fin aid office at both schools (UVM and new school) don't know that. They just rely on the computer. What if UVM had someone smart code the program while the new school didn't but is eligible as well for it.

The Stafford amount that UVM is offering you is what I get in my 3rd and 4th years of medical school since we're on a full year program. I got the $40,500 the first 2 years because we were a 9 month program for that. Maybe UVM has you spend more time in school your first year?

 

[JamesBond15]

The Stafford amount that UVM is offering you is what I get in my 3rd and 4th years of medical school since we're on a full year program. I got the $40,500 the first 2 years because we were a 9 month program for that. Maybe UVM has you spend more time in school your first year?

So I looked at UVM's curriculum. For year 1, class start in beginning of August (around the 6th) and end in mid June (14th). (Dates are for the class of 2011). That doesn't sound too different from other schools.
Here is a link to UVM's curriculum if anyone is wondering:
http://www.med.uvm.edu/ome/downloads/VICDIAGRAM.pdf
And here is the calendar for the previous year:
http://www.med.uvm.edu/studentaffairs/downloads/Academic Calendar Class of 2011 - Current.pdf

I am just surprised by the fin aid staff being kind of clueless as to where the number comes from. If you are right, saying that during year 3 and 4 you get more Stafford loans, then wouldn't every school get that? Since everyone is on a full year program for years 3 and 4. Why wouldn't the fin aid guy at my new school not pick that up.

 

[AMDFAO]

The amount you were awarded seems OK to me based on the fact you are enrolled 11 months. The base amount for all grad schools was $20,500 sub/unsub but MD/DMD/VDM were allowed to borrow through another loan program from HHS (HEAL Loans). The annual max's for HEAL were based on the length of the academic year: 9 months another $20,000; 10 months $22,222-- for every month over 9, add $2222. When the HEAL program went down in flames, the feds elected to let you all borrow the replacement money in unsub using the old HEAL calculation.
There are some schools that may have never figured out that they could certify you for the larger amounts because the eligibility criteria was confusing (to be nice about it). Originally a school needed to have participated in the HEAL program to do the increase in Unsub and there were many schools that never participated so they were left out for a while. Ultimately the Dept of Ed came out and said that it did not matter anymore if the school used HEAL so all schools could certify the new limits based on the calculation for MD/DMD/VDM (I'm not sure about the PsyD part if the other poster is reading this but HEAL may have been open to that as well so calling the school allowing the upper limits and asking if that's the case might help you).
It is not uncommon for newer FA folks to never figure out where it came from so don't get too upset at them or older ones who never got the memo as what was sent was pitiful. I'm sure they were just told the limits and have no clue as to why they are what they are... One day after you bond with your FA person, explain the prorated calc based on the length of the academic year so the next kid who asks will get an answer or print out my post and share it.

 

[JamesBond15]

The amount you were awarded seems OK to me based on the fact you are enrolled 11 months. The base amount for all grad schools was $20,500 sub/unsub but MD/DMD/VDM were allowed to borrow through another loan program from HHS (HEAL Loans). The annual max's for HEAL were based on the length of the academic year: 9 months another $20,000; 10 months $22,222-- for every month over 9, add $2222. When the HEAL program went down in flames, the feds elected to let you all borrow the replacement money in unsub using the old HEAL calculation.
There are some schools that may have never figured out that they could certify you for the larger amounts because the eligibility criteria was confusing (to be nice about it). Originally a school needed to have participated in the HEAL program to do the increase in Unsub and there were many schools that never participated so they were left out for a while. Ultimately the Dept of Ed came out and said that it did not matter anymore if the school used HEAL so all schools could certify the new limits based on the calculation for MD/DMD/VDM (I'm not sure about the PsyD part if the other poster is reading this but HEAL may have been open to that as well so calling the school allowing the upper limits and asking if that's the case might help you).
It is not uncommon for newer FA folks to never figure out where it came from so don't get too upset at them or older ones who never got the memo as what was sent was pitiful. I'm sure they were just told the limits and have no clue as to why they are what they are... One day after you bond with your FA person, explain the prorated calc based on the length of the academic year so the next kid who asks will get an answer or print out my post and share it.

Thanks for the reply. But it seems that UVM doesn't have an 11 month year. At least from the initial looks of it. Can other schools allow for more unsub loans? Would it be worthwhile to really pursue the FA people to look into it and see if the school can allow for more? Or is it something from the past that now can't be changed?

 

[AMDFAO]

The academic year looks to go from Aug to June and that's 11 months in their world (but would be 10 in mine). I'm pretty sure they are counting all of Aug and July and not Aug to Sept is 1 month, Sept to Oct is 2 months but a straight out Aug, Sept, Oct, Nov, Dec, Jan, Feb, Mar, Apr, May, June. I tend to think it's really 10 months myself but some schools won't look at it 30 day increments and eliminate breaks of longer than 3 days. The annual max is written by law so schools just can't invent the numbers so calling other schools won't help you (besides they may ultimately conclude they are funding a day calculated 10 month year at 11's rates because they're counting wrong).
Amounts would be
$40,500 9 month year
42722 10 month year
44944 11 months (which would add up to your 8500/36444 combo)
47166 for 12 months
Did that clarify it? If not, try again of course.

 

[JamesBond15]

The academic year looks to go from Aug to June and that's 11 months in their world (but would be 10 in mine). I'm pretty sure they are counting all of Aug and July and not Aug to Sept is 1 month, Sept to Oct is 2 months but a straight out Aug, Sept, Oct, Nov, Dec, Jan, Feb, Mar, Apr, May, June. I tend to think it's really 10 months myself but some schools won't look at it 30 day increments and eliminate breaks of longer than 3 days. The annual max is written by law so schools just can't invent the numbers so calling other schools won't help you (besides they may ultimately conclude they are funding a day calculated 10 month year at 11's rates because they're counting wrong).
Amounts would be
$40,500 9 month year
42722 10 month year
44944 11 months (which would add up to your 8500/36444 combo)
47166 for 12 months
Did that clarify it? If not, try again of course.

That makes sense. Thanks! I will contact my new school to see how long they count the academic year to be. But also, from my understanding 3rd and 4th year are longer than 9 months. If that is the case, then the higher amounts would be allowed? From the looks of it, my new school doesn't give higher amounts for the 3rd and 4th year either.

Thank you for clearing it up. Finally someone is about to explain it.