Question about Federal Loan Limits

[CaveatLector]

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Hey Everyone, thank you for any help.

Do federal loan limits begin anew if you had federal loans for undergrad, etc., but pay them off.

In other words, do federal loan limits mean you can only OWE $x but if you pay it down or off you can then borrow again?

 

[scpod]

Hey Everyone, thank you for any help.

Do federal loan limits begin anew if you had federal loans for undergrad, etc., but pay them off.

In other words, do federal loan limits mean you can only OWE $x but if you pay it down or off you can then borrow again?

They call it a "Lifetime" limit for a reason. Perhaps after you are dead and reborn...?

 

[PhDtoDO]

138 thousand for grad.


There is a separate limit for grad school than undergrad.

I should know, I maxed out. But after consolidation I'm at about 2% and once I pay on time I'll be paying less than 2%


If you did or didn't max out your undergrad limit, it has no effect on your grad limit.


The financial aid offices of med schools have other types of loans.

Trust me, something about med students and banks, they love loaning them money! That generally includes mortgages too assuming you don't have 20 thousand on your credit cards.


NOT just my opinion,

PhDtoMD

 

[scpod]

138 thousand for grad.
If you did or didn't max out your undergrad limit, it has no effect on your grad limit.

The financial aid offices of med schools have other types of loans.

Yes, but the aggregate maximum on Stafford Loans through AAMC-Medloans is $189,125. With ALP the maximum from all sources is $220,000.

 

[sasevan]

Yes, but the aggregate maximum on Stafford Loans through AAMC-Medloans is $189,125. With ALP the maximum from all sources is $220,000.

Hi scpod,

what is ALP?

Peace. 🙂

 

[PhDtoDO]

Yeh,

What is ALP? and is it 189000 for DO schools too?

-s

 

[scpod]

Hi scpod,

what is ALP?

Peace. 🙂

Alternative Loan Program, which is credit based.

 

[scpod]

Yeh,

What is ALP? and is it 189000 for DO schools too?

-s

Yes, and for ParmD and DPM as well, although other lenders will be involved.

 

[sasevan]

Alternative Loan Program, which is credit based.

Thanks scpod.

Does ALP 220k mean on top of Stafford 189k or including it?

Also, if ALP includes Stafford (for a max of 220K) can one still qualify for private loans to make any difference above that 220K?

Thanks again. 😕

 

[scpod]

Thanks scpod.

Does ALP 220k mean on top of Stafford 189k or including it?

Also, if ALP includes Stafford (for a max of 220K) can one still qualify for private loans to make any difference above that 220K?

Thanks again. 😕

The 220K for ALP includes ALL other sources, Stafford or private funds. You may be able to qualify for private funds in lieu of ALP (and get more), but they would come from a different lender and are not usually as generous with terms.

 

[desertdr]

The 220K for ALP includes ALL other sources, Stafford or private funds. You may be able to qualify for private funds in lieu of ALP (and get more), but they would come from a different lender and are not usually as generous with terms.

Scpod...let me get this straight. If ALP is a credit based alternative loan program with a max of 220 that includes all sources, that would mean that one would only be able to get alternative loans of about 31K (220K max - 189K stafford max = 31K) in 4 years of medschool training. Are you sure?

I though it was 189K max for staffords (sub and unsub) and then the rest of it is covered by credit based private loans (citibank, etc) up to the full need.

For example:

Med School X : Tuition, room, board, and fees = 63K a year.
Max loan for that year thru staffords is 38.5K. Need of 24.5 K which would be filled by private loans or if lucky, institutional loans/grants (Pell, etc.)
Assume 24.5K a year of private loans X 4 years of school = 98K of private loans!!!!! (On top of the 154K from Staffords!)

Am I missing something?

 

[Doctor Bagel]

The $220k ALP limit is just for Sallie Mae's Medloans program. There is no cap on the amount you can receive through MedAchiever, T.H.E. loans (I think they're citibank) and I think Access loans. Generally, you do need a co-signer to borrow any amount of $200k, though. For most private schools, your estimated cost for a year is around $65 to $70k, so you're right, the $220k limit wouldn't entirely cover you. I've heard Medloans aren't the best anyway, so it's not necessarily a loss to go with another lender. The basic story is that you can borrow as much your school states that you need provided you have a credit-worthy co-signer.

 

[desertdr]

Hey guys this may sound like a stupid question but I read in the financial aid forum that loans from undergrad/grad that are paid off are not counted in your aggregate limit. For example, i borrowed 60K in grad but I paid off 60 K before med school....am I allowed the full federal limits in med school?

To complicate matters worse...what happens if I consolidated my staffords from grad school last year into one loan. They effectively paid off all my other lenders...do I still qualify for the full federal limits in med school or will they count that 60K from grad into the aggregate.

sorry to confuse everyone but I couldn't find anything iin the financial aid forum regarding consolidation and its effect on federal limits. BTW, I consolidated with Sallie Mae, if that helps.

I'm just concerned in that it looks like I won't get into my state school and thus will be attending a costly out of state private!

 

[scpod]

To complicate matters worse...what happens if I consolidated my staffords from grad school last year into one loan. They effectively paid off all my other lenders...do I still qualify for the full federal limits in med school or will they count that 60K from grad into the aggregate.

Your consolidated loan DOES count toward your aggregate limit. The staff at your med school will check NSLDS and federal consolidation loans are recorded there. Keep in mind,though, that the figure in NSLDS will include any capitalized interest from unsubsidized loans, but those amounts are NOT counted toward your aggregate limit. You will have to work that out with your school.

 

[desertdr]

Thanks!