What Are The Stafford Loan Limits

Q: I have heard that Federal Stafford Loans have limits on the amount you can receive. If this is true, what are the Stafford Loan limits?

A: Yes, there are limits on Federal Stafford Student Loans for college. First, file a FAFSA (at www.fafsa.ed.gov) to see if you will be eligible to receive a Stafford Loan. Federal Stafford Loans come in two different types, subsidized (the government pays the interest while you’re in school) and unsubsidized (you pay all the interest, but loan payments can be deferred until after graduation). You (and/or your family) will have to meet certain requirements and demonstrate financial need to qualify for an unsubsidized Stafford Loan.

Federal Stafford Loan Limits can vary, depending on a number of factors including, but not limited to: the classification of the Stafford Loan (subsidized or unsubsidized), the students dependancy status, the student’s year in school, and if the student is an undergraduate, graduate, or medical school student. Below is a general layout of subsidized and unsubsidized Stafford Loan limits based on the students year in school. For the most current information on Stafford Loan limits and Stafford Loans visit www.fafsa.ed.gov.

For the 2010-2011 academic year, the unsubsidized Stafford Loan limits are (minus any amounts received as subsidized loans): Freshman – $5,500 / Sophomore – $6,500 / Junior – $7,500 / Senior – $7,500

For the 2010-2011 academic year, the subsidized Stafford Loan limits are: Freshman – $3,500 / Sophomore – $4,500 / Junior – $5,500 / Senior – $5,500