You may be eligible for the Subsidized Loan and Unsubsidized Loan. There are annual and aggregate limits for these loans. The Subsidized Loan is based on a student's "need". Need is calculated by taking the student's Cost of Attendance and subtracting the student's Expected Family Contribution. The positive number is the total amount of need-based aid a student may receive. Need-based aid are grants, scholarships, federal work study, subsidized loan, and perkins loan.
As a Dependent Student, you are eligible for the following:
Freshman - $5500 (of which, $3500 may be Subsidized)
Sophomore - $6500 (of which, $4500 may be Subsidized)
Junior/Senior - $7500 (of which, $5500 may be Subsidized)
Aggregate - $31000 (of which, $23000 may be Subsidized)
If you are an Independent Student, the amounts change to:
Freshman - $9500 (of which, $3500 may be Subsidized)
Sophomore - $10500 (of which, $4500 may be Subsidized)
Junior/Senior - $12500 (of which, $5500 may be Subsidized)
Aggregate - $57500 (of which, $23000 may be Subsidized)
The difference between a Subsidized Loan and Unsubsidized Loan is the interest accrues on the Unsubsidized Loan from when the loan has been fully disbursed. That interest will capitalize on your
principal balance after your 6 month grace period. The Subsidized Loan does not accrue interest until after your 6 month grace period.
The difference between a Dependent Student and Independent Student is the total amount which may be borrowed. However, as a Dependent Student, you may also be offered a Parent PLUS Loan. This loan is under your parent's name (so they are responsible for repayment) and can be any amount up to your remaining Cost of Attendance. Your parent would need to pass a credit check to be eligible for this loan. If they are unable to pass a credit check, one option is to increase your loans up to the levels of an Independent Student.
Your school may also participate in the Federal Perkins Loan. However, the Federal Perkins Loan will most likely be disbanded after September 2015.
Your school may have a state/institutional loan. You would need to inquire with the Financial Aid Office about any loans in that nature.
Lastly, you can also look into a private student loan. This can be taken out from your bank or various loan lenders. Some of the major loan lenders are: Wells Fargo, Sallie Mae, and Discover.
*T-Roy-Rex* · 6 months ago