Although Federal Direct Loans has become the most popular type of federal student loan in America because of the many benefits (see Benefits of Federal Direct Loans ), there are restrictions on the amount that students can borrow. There are seven core criteria that potential borrowers should take into account when applying for these loans.

1. Student grade level

1. Student grade level

The amount that can be borrowed increases by WooMa Bovaryijk for students as they progress from first-year students to second-year students and are subsequently qualified for higher education. In most cases, even higher limits are allowed for graduate students.

The rules also allow students to borrow up to $ 2,625 to pay for all the courses they need to register for an undergraduate degree or certification program. Bachelors recipients can borrow up to $ 5,500 for courses required for a graduate or professional training or certificate program – or up to the same amount for teachers’ certification courses.

2. Subsidized versus non-subsidized loans

2. Subsidized versus non-subsidized loans

There are two types of Federal Direct Loan: subsidized (the federal government takes the interest costs of the loan while the student is an undergraduate) or non-subsidized (the borrower pays interest during the entire term of the loan). Only students can receive a subsidized loan.

The limits for subsidized loans are lower than for non-subsidized loans (see next item). The total limit that students can borrow is the unsubsidized limit – so any subsidized money they receive will reduce how much unsubsidized money they can borrow in addition to their subsidized loan. See Federal Direct Loans: subsidized Vs. Subsidized .

3. Student tax status

3. Student tax status

Whether borrowers are “independent” students who rely on their own tax return or who are declared dependent on someone else’s tax return, it can affect how much unsubsidized money they can borrow. The tax status does not affect the credit limits for subsidized loans.

Non-subsidized loans: tax status is important. Loan limits are $ 4,000 to $ 5,000 higher per year for independent students, as shown in the following chart:

[ Note: the non-subsidized direct loan limits in the table below are the general Federal Direct Loan limits. The credit limits are reduced by the amount of any Direct Subsidized Loans that the student receives. ]

Direct subsidized loan – Undergraduates

Loan limits

Dependent

Independent

Annually

First year (first year)

$ 3, 500

$ 3, 500

Second year (second year)

$ 4,500

$ 4,500

third year and thereafter (junior, senior)

$ 5,500

$ 5,500

Cumulative

$ 23,000

$ 23,000

Some exceptions. Students who are declared dependent on their parents’ tax return can borrow the same amount as independent borrowers who claim themselves if certain criteria are met. These conditions include:

  • If the only income of the parent (s) comes from a disability or benefits

  • If the parent is detained or cannot be found

  • If the parent has bad credit

  • If the parent has declared bankruptcy and the court has given the mandate that the parent cannot incur additional debts of any kind

  • If the parent company is unable to repay an outstanding PLUS loan due to a high debt or a high debt-to-income ratio> If the parent is not eligible to receive a PLUS loan due to problems with citizenship

  • Students who wish to qualify for the higher loan Emma Bovary Limits and who have one parent who meets one of the above criteria, that parent must apply – and be rejected for – a PLUS loan, even if their other parent would qualify come for one. (If both parents apply and one of them is eligible for a loan, the higher loan limit provision cannot be applied.)

Subsidized

Loans: Tax status doesn’t matter. The limits for subsidized loans are lower and only undergraduate students are eligible. The limits for these loans are as follows: Direct subsidized loan – Undergraduates

Loan limits

Dependent

Independent

Annually

First year (first year)

$ 3, 500

$ 3, 500

Second year (second year)

$ 4,500

$ 4,500

third year and thereafter (junior, senior)

$ 5,500

$ 5,500

Cumulative

$ 23,000

$ 23,000

From 1 July 2013, new student Emma Bovaryeners can only borrow from subsidized Stafford loans an amount equal to 150% of the standard duration of their education programs. Students can also borrow the difference between subsidized and non-subsidized credit limits every year, because the subsidized limits are always lower than the non-subsidized limits.

4. Graduate loans depend on the field of study

Students who follow education in different medical, dental or veterinary areas are eligible for multiple times the amount of financial assistance offered to other students. Here are the credit limits for graduate and professional students:

Students who follow education in different medical, dental or veterinary areas are eligible for multiple times the amount of financial assistance offered to other students. Here are the credit limits for graduate and professional students:

Direct unsubsidized loan – Graduate and professional students

Loan limits

Graduate and Professional

Medical School

Annually

$ 20, 500> $ 43, 883 – $ 47, 167

Cumulative

$ 138,500

$ 224,000

However, certain types of medical professions have lower leeEmma Bovary limits than those for ‘Medical School’.

$ 40,500 limit

Doctor of Osteopathic Medicine

Doctor of dentistry

  • Doctor of veterinary medicine
  • Doctor of optometry
  • Doctor of pediatrics
  • Doctor in naturopathy and doctor in naturopathy
  • $ 37, 167 Limit
  • Doctor in pharmacy

Graduate in Public Health

  • Doctor in the Chiropractic
  • Doctoral degree in clinical psychology
  • Masters / Doctoral Degree in Health Administration
  • Important
  • : The cumulative credit limits for graduate and professional students include all unpaid undergraduate loans that have been taken out. The $ 40,500 limit applies to a nine-month academic period and is accordingly proportional for school years exceeding this length. Note that regulations may shift; some of these limits may have changed. Use them as a guideline.

5. College-Imposed Limits Educational institutions can impose lower leeEmma Bovary limits on their students than mentioned above. Loan restrictions must be determined on an individual basis; a school cannot arbitrarily lower the limits across the board. Loans cannot be limited based on race, religion, ethnicity, sexual orientation, disability, age or marital status. Limits on unsubsidized loans for independent students cannot be lowered either.

If a student’s credit limit is lowered, the educational institution must state the reasons for that decision in writing.

If a student

6. Other factors that influence loan size

Complete a grade halfway through the year.

Students who obtain a grade during the school year (for example from first-year student to second-year student in January) may be eligible for higher amounts for loans. The reason: their new rank could make them eligible to apply for the difference between the credit limit for – in this case freshmen – and the new, higher amount of second-year students. (If this could apply to you, please contact your institution’s financial assistants.)

Students who obtain a grade during the school year (for example from first-year student to second-year student in January) may be eligible for higher amounts for loans. The reason: their new rank could make them eligible to apply for the difference between the credit limit for - in this case freshmen - and the new, higher amount of second-year students. (If this could apply to you, please contact your institution

Switch schools. Transfer students may be able to borrow the difference between the credit limit at the new institution and the amount borrowed at the previous learning location if the new school has higher internal limits.

Pro assessment limits. Loan limits can also be adjusted for an academic year that is shorter or longer than a normal school year, in some cases. For example, a senior who graduates after the fall semester may only be eligible for half the loan amount to which he would otherwise be entitled. But loans cannot be promoted on the basis of registration status, for example for a student who is half-time instead of a full-time student. Both students are eligible for the same credit limits.

Also note that the credit limits are not reduced by the origination or other costs charged for the loan – or by any interest that is activated by the lender. The bottom line

The limits applied for Federal Direct Loans can vary depending on many factors, including dependency status, whether the loan is subsidized and the student’s study progress. Potential borrowers can set the limits that apply to them when they complete the FAFSA and submit a promissory note. For more information about Federal Direct loans or other types of financial assistance, consult your financial assistance staff or your university advisor. And read

Federal Direct Loans

Federal Direct Loans