The first three federal loans below are dispersed unrelated to your credit rating; An individuals borrowing limit for the HPSL and Perkins Loans are determined by their school. Both are need based. Beyond these sources you would have to borrow from, preferably, Grad Plus or Private Loans. Both of these are effected by your credit rating. Your status, undergrad or graduate, will effect your borrowing limits for the Stafford. For all of these loans except for the private loan filling out a FAFSA is a requirement.
Stafford Loan
Dependent Annual loan limit
Freshman $3,500*
Sophomore $4,500*
Junior or senior $5,500
Independent Annual loan limit
Freshman $7,500*
Sophomore $8,500*
Junior or senior $10,500
Graduate or professional $20,500*
Undergraduate dependent lifetime limit $23,000
Undergraduate independent lifetime limit $46,000
Graduate or professional lifetime limit** $138,500
*For loans first disbursed on or after July 1, 2007. **Exceptions may apply to certain graduate students.
Interest rate
For Stafford loans first disbursed beginning July 1, 2006, the interest rate is fixed at 6.8%.
Fees
For loans first disbursed July 1, 2007–June 30, 2008: Up to 2.5% in fees that includes a 1.5% federal origination fee and a 1% federal default fee. There are lenders and guarantors that work with Sallie Mae that pay all or a portion of these fees.
Health Professions Student Loan Program (HPSL)
The HPSL is a need-based federal loan available to qualified full-time medical, dental, pharmacy and other health profession students. The HPSL features a low interest rate and no loan fees.
Eligibility
In order to receive the HPSL, a student must be enrolled full-time in the Medical or Dental Schools. Students must also qualify for need-based Financial Aid. As such, they must be U.S. Citizens or Permanent Residents.
Interest Rate
The interest rate of the HPSL is a fixed-rate of 5%.
Loan Fees
There are no fees of any kind associated with the HPSL.
Annual Borrowing Limits
Aggregate Borrowing Limits
There is no aggregate borrowing limit for this program.
Federal Perkins Loan
The Federal Perkins Loan is a need-based loan made by the University. The Federal Perkins Loan requires that the student borrower repay with interest this source of financial assistance. Additional terms, subject to revision by federal regulation, include:
* Zero interest while the student is enrolled in school on at least a half-time basis and during the nine-month grace period following enrollment
* 5% fixed interest rate during repayment
* No origination fee or insurance fee
* Repayment of principal and interest begins nine months after the student ceases to be enrolled in school on at least a half-time basis and generally extends over a 10 year period; payments are made on a quarterly basis
* $4,000 annual borrowing limit for undergraduates; $6,000 annual borrowing limit for graduate / professional
* $20,000 maximum aggregate undergraduate borrowing; $40,000 maximum aggregate for graduate / professional.
GradPLUS Loan
You may borrow up to the full cost of your education, less other aid received.
Interest rate
The Graduate PLUS interest rate is fixed at 8.5%. Some lenders who work with Sallie Mae offer interest rate reductions that may reduce the interest rate to as low as 6.75%.*
Fees
There is a 3% origination fee charged by the federal government. Up to a 1% federal default fee is also charged. There are lenders and guarantors who work with Sallie Mae that pay all or a portion of the default fee for loans guaranteed July 1, 2007–June 30, 2008.
Meanwhile, work on improving your credit score. You should still try for the GradPlus loan before resorting to private loans when the time comes. Good Luck.
