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It sounds like the stafford aggregate limit might indeed increase

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Doctor Bagel

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Someone here mentioned that their FA office told them this, and I decided to do some searching. It sounds like the DOE has indeed agreed to increase the stafford aggregate limit for health professional students to $224k. If true, it sounds like fantastic news because I was set to hit the $189k cap this next year.

Now I'm wondering when it will be implemented.

http://www.nasfaa.org/publications/2008/rnloanlimit031408.html
 

gstrub

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I wonder if they will increase the amount of subsidized loans? I hit the sub limit last year and had to take an unsub loan, but if they increase the sub limit I will borrow it and pay off the unsub loan. WOOOHAHAHAHA
 

Doctor Bagel

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I wonder if they will increase the amount of subsidized loans? I hit the sub limit last year and had to take an unsub loan, but if they increase the sub limit I will borrow it and pay off the unsub loan. WOOOHAHAHAHA

From reading the letter the DOE secretary wrote, it sounds like Congress has to increase the subsidized limits. The DOE just has discretion to increase the unsubsidized amounts. It's certainly something worth contacting our reps about.
 

gstrub

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I just spoke to my FA advisor and she said this increase will only be for unsub. Damn...
 

mooredge

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Wow. Thats great. In the midst of the decreasing incentives there is a little light. Hopefully this will go into effect this year. 6.8% sounds a lot better to me than 8.6%
 

DoctorPardi

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What is the current amount of subsidized aggregate? It is only 8500 a year regardless right?
 

Doctor Bagel

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What is the current amount of subsidized aggregate? It is only 8500 a year regardless right?

I think it's $65k for the lifetime aggregate. And yeah, $8500/year max.
 

DoctorPardi

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I think it's $65k for the lifetime aggregate. And yeah, $8500/year max.

If COA is 40,000 will most students get 8500 subsidized and 31,500 unsubsidized stafford? Regardless of need, credit and other considerations?
 

Doctor Bagel

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If COA is 40,000 will most students get 8500 subsidized and 31,500 unsubsidized stafford? Regardless of need, credit and other considerations?

Yep. Unsubsidized staffords are neither need nor credit based. As long as you're not going over the COA or going beyond the lifetime or annual limit, you can get them.
 

DoctorPardi

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Well I will not go over the aggregate amounts for either unsubsidized or subsidized, although it will be really close (160,000 total). I just wish we could get more like 10-15,000 subsidized per year.
 

Doctor Bagel

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Well I will not go over the aggregate amounts for either unsubsidized or subsidized, although it will be really close (160,000 total). I just wish we could get more like 10-15,000 subsidized per year.

Yeah, I agree. They haven't raised the subsidized stafford cap in ages, so it seems like it's about time. FA really hasn't kept up with the super inflation on tuition.
 

futuredo32

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This is awesome. I hope it goes into effect ASAP. I really don't want to have to get a Grad Plus loan.
 

TerraMedicX

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Wow. Thats great. In the midst of the decreasing incentives there is a little light. Hopefully this will go into effect this year. 6.8% sounds a lot better to me than 8.6%

OK...so related question: I'm assuming you're talking about taking out more Staford loans at 6.8% rather than the PLUS loans at 8.5% or whatever. I heard rumor that they were going to lower the rates on PLUS loans starting July 1st this year since the market private loans are substantially lower than 8.5%. Can anyone substantiate this rumor? Also, if this happens, does it mean I need to wait until after July 1st to apply for my loans?

Nate.
 

thebeatblitz

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Is "substantially lower" below the 6.8 fixed of Staffords? How is the government going to reconcile that with all of our FAOs that require taking out the max in Staffords...
 

john9192

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Hey people, I'm kinda confused here.
I just got my award letter and it says that I'll be getting 8500 in Subsidized stafford loan and 12000 in Unsubsidized stafford loan. But the thing is, that doesn't cover my total budget and it just says 'Remaining Need: 15137' When I searched online, it says that the maximum stafford loan I could get is 20,500. That I guess make sense since in my case (8500+12000=20,500). Now my question is, where do I get money for my remaining need? Some person from above said that they were getting over 30k in stafford loans. How is that possible? Kinda confused..
 

Doctor Bagel

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Hey people, I'm kinda confused here.
I just got my award letter and it says that I'll be getting 8500 in Subsidized stafford loan and 12000 in Unsubsidized stafford loan. But the thing is, that doesn't cover my total budget and it just says 'Remaining Need: 15137' When I searched online, it says that the maximum stafford loan I could get is 20,500. That I guess make sense since in my case (8500+12000=20,500). Now my question is, where do I get money for my remaining need? Some person from above said that they were getting over 30k in stafford loans. How is that possible? Kinda confused..

What type of program are you in? Medical students and I think dental students can get $40,500 in staffords yearly, but other grad students can only get $20,500.
 

john9192

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What type of program are you in? Medical students and I think dental students can get $40,500 in staffords yearly, but other grad students can only get $20,500.


Is that right? I'm talking about dental school here. I guess I need to go ahead and talk to the financial office.
 

billermo

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Is that right? I'm talking about dental school here. I guess I need to go ahead and talk to the financial office.

I'm Dental and I received $47,116 in Stafford Loans in 07-08. $8,500 was Subsidized and the rest Unsubsidized. The annual Stafford amount depends on the number of months per school year. Ours is set at 12 months. If your's is 9 months, it may be less than $47,116. For some reason it's very difficult to find documentation on Stafford Loan limits for "Health Professionals". The Graduate limits are usually published but much less than $47,116. The aggregate lifetime Stafford total is $189,125, but as stated earlier, I believe this is being raised for 08-09. Once you hit the aggregate limit you can not take any additional Stafford loan money.

You usually want to maximize your Stafford Loans, then turn to GradPlus to make up the rest of COA, providing GradPlus interest rates are competitive. With dropping interest rates, private loans may carry a lower rate than GradPlus currently set at 7.9 or 8.5%. Yikes!

Definitely consult your Financial Aid adviser for specific info for your school.
 

Phoenix.

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You usually want to maximize your Stafford Loans, then turn to GradPlus to make up the rest of COA, providing GradPlus interest rates are competitive. With dropping interest rates, private loans may carry a lower rate than GradPlus currently set at 7.9 or 8.5%. Yikes!

That's what I was just thinking. I've got very good credit (*knock on wood*), so I'd probably qualify for the lower bracket of interest rates on private educational loans (as low as 6.12% with Chase) up to the COA. So why then would I want to take out a chunk in GradPlus loans? Is there any benefit to GradPlus loans over a private educational loan at a rate lower than the GradPlus interest rate? Has anyone foregone a GradPlus loan altogether and used a private educational loan instead?
 

Doctor Bagel

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don't the private loan interests vary? so there is some possibility that the rate may be higher than the grad plus rate. This increase of stafford limit would be so great if it were to actually happen.

Yeah, this is why I think I'm still not going with a private loan over a GradPlus loan. Even if the interest is lower now, they generally have the right to raise the interest to practically credit card interest rates.
 

thebeatblitz

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Yeah, this is why I think I'm still not going with a private loan over a GradPlus loan. Even if the interest is lower now, they generally have the right to raise the interest to practically credit card interest rates.

Although HELOC's are variable, a regular home equity line is fixed at around 7% right now if you have large equity (house) and good credit.

My parents offered to loan me through a home equity line since they can get a 6.7% loan (their mortgage has been paid for a few years) to cover after Staffords up to COA. Right now, the problem for us is that both my siblings are in private undergrad ($$$) at the same time that I'm in school.

I still think it's ******ed that a Grad+ loan is at 8.5% (wtf?) and Staffords are at 6.8% when I can get a car loan (with my 751 FICO) at 4.8%. Thanks Government.
 

futuredo32

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I just got an email from my financial aid advisor a few minute ago and she said that they raised the maximum cummulative limits to 224,000 starting in July 2008, not 2009. I hope this is true, it would really help me out a lot.
 

AMDFAO

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It was effective as of April (the date in the letter from the Dept of Ed gave it an "upon publication" as the effective date and not the July 08 as was expected). Some schools are making the change now for their kids already at the max and some are waiting until July of 08 so they don't have to go back and repackage the kids who hit the $189,125 this year. Annual loan limits for health professions kids were not increased so it is still the $40,500 for 9 months and an additional $2220 for every month over 9. Undergrad annual loan limits have been increased as well but not grad.
 

Josh L.Ac.

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Does anyone know if this aggregate limit increase will apply to other health professions students, like anesthesiologist assistant (AA) students?


Thanks.
 

gman33

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Yeah, this is why I think I'm still not going with a private loan over a GradPlus loan. Even if the interest is lower now, they generally have the right to raise the interest to practically credit card interest rates.

Private loans also do not have credit insurance. The Grad Plus loans can be forgiven if you become diasabled or die.
 

mmcnam

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I didn't think that GradPlus loans were depenedent on credit, but my school website says that "after your credit is approved, your GradPlus loans will be disbursed". Am I wrong?
 

lemoncurry

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increased aggregate doesn't necessarily mean that you can borrow more per year, unfortunately. Nothing in that document mentioned annual limits, so I don't expect too many immediate effects of this change.
 
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