Loan Max

[wannabeSLPnc]

Hi, this may seem like an obvious question, but I didn't take out federal loans for my undergrad so I don't have much experience with this.

I thought that the annual amount for federal unsubsidized direct loans was $20,500, but it appears that based on my FAFSA the university I've committed to has awarded me about $16K in unsubsidized federal loans per semester. Does that make sense? Am I missing something or does that exceed the annual cap?

 

Thanks!

[namarie]

The school typically doesn't award you an amount that drastically exceeds the cost of attendance. So while the FAFSA determined that you could take out $20,500 if necessary, the university doesn't think you need it. How much is the total cost of attendance at the university? 

[runjackrun]

I think what @wannabeSLPnc is saying is that they were awarded $16k per semester, or $32k for the year, exceeding the $20,500 federal direct unsubsidized maximum. I'm no expert on financial aid, but as I understand it, you are eligible for aid up to the total cost of attendance for a program less whatever the school is offering you in scholarships/fellowships/etc. While you can only take out up to $20,500 per year in federal direct unsubsidized loans, the remaining balance (in this case, 32k - 20,500 = $11,500) would be through federal Graduate PLUS loans. These are part of the federal loan program (though I believe they are provided through a private lender) and I think they typically have a higher interest rate. I would contact your FinAid office just to make sure this is what they are offering. 

[namarie]

On 4/15/2016 at 11:27 AM, runjackrun said:

I think what @wannabeSLPnc is saying is that they were awarded $16k per semester

Ahh. Thanks! I totally missed that 'per semester' thing.