Get The Money You're Entitled To

Unbeknownst to many undergraduate college students and their families is the $2,000 increase in Unsubsidized Stafford Loans that students can borrow for the 2008 – 2009 academic school year.

The new maximum Stafford Loan limits for the 2008 – 2009 academic school year that are first disbursed on or after July 1, 2008 are listed below. These limits include Subsidized and Unsubsidized Stafford Loans.

Academic Level	Dependent Student	Independent Student
Freshman	$5,500	$9,500
Sophomore	$6,500	$10,500
Junior & Senior	$7,500	$12,500
Graduate & Professional	n/a	$20,500

A Little Background...
There are two types of Federal Stafford Loans that students may qualify for: Subsidized and Unsubsidized.

Subsidized:The government will pay the interest on your Federal Subsidized Stafford Loan as long as you are enrolled in school at least half-time or you are in grace or deferment. Your eligibility is determined by the FAFSA and is based on your financial need.

Unsubsidized: You will be responsible to pay the interest that accrues on an Unsubsidized Stafford Loan while enrolled in school. If you are unable to make interest payments while in school, you may choose to defer the interest until you graduate or attend school less than half-time. If you are deferring payments, the accrued interest will be added to your loan balance when the loan enters repayment.

Are Students Taking Advantage Of The Extra Cash?
With this great news, one would assume that many students would opt to request the maximum amount of Unsubsidized Stafford Loans, especially since Federal Stafford loans have much lower fixed rates when compared to the Private (or Alternative) Loan’s variable rate.

However, our reporting as recently as July 8th showed us that only 3% of our eligible undergraduate borrowers have taken advantage of this loan increase. That’s millions in additional loans that these students could access instead of borrowing a more costly private loan!

Be Sure You Get Your Share.
Some schools may have sent financial aid award letters to students prior to the funds being available and now they may be waiting for the students to request the additional funds. So if you’re still strapped for cash to cover the cost of college, be sure to double-check your award letter from your Financial Aid Office. You’ll want to be sure that you request and accept the full Unsubsidized Stafford Loan amount that you are entitled to for the 2008 – 2009 academic school year.

For additional information or questions, please feel free to contact us at 1-877-256-0066.