Unfortunately, most of us cannot simply write a check for school costs, at least not for all of it. So fortunately, there is Financial Aid, and it comes in several different types. For many students and families, applying for the various types of aid involves many of the same steps we have already taken in our college trip.
The usual types of aid include:
|
Federal Grants |
Scholarships |
|
State Grants |
College Work Study |
|
Federal Loans |
Private (non-federal) Loans |
Subsidized Stafford Loan
Federal Subsidized Stafford Loans are available to undergraduate and graduate students attending a participating Title IV school. Eligibility is determined by the school based on a federal formula which considers family income, school expense and other financial aid awards. The interest on subsidized loans is paid by the government during any in-school, grace and/or deferment periods.
Unsubsidized Stafford Loan
Federal Unsubsidized Stafford Loans are available with the same terms as subsidized loans, with the exception of interest payments. The interest on an Unsubsidized Stafford Loan is always the borrower's responsibility, from disbursement until the loan is paid-in-full.
Parent PLUS Loan
Federal PLUS Loans are available to credit worthy parents of dependent undergraduate students in amounts up to the total cost of education, less other aid. PLUS borrowers are responsible for all interest accrual on a PLUS loan.
GradPLUS Loan
Federal GradPLUS Loans are available to credit worthy graduate and professional students who have remaining need not covered by Stafford Loans. ISM automatically puts all GradPLUS loans on an in-school deferment at the first disbursement date. The interest on a GradPLUS Loan is always the borrower's responsibility, from disbursement until the loan is paid-in-full.
Consolidation Loan
Federal Consolidation Loans are available to borrowers who wish to combine multiple education loans into a single loan with a single monthly payment and/or receive a fixed interest rate on their student loans. Based on the types of loans consolidated, subsidized and unsubsidized portions are differentiated so that the government will continue to make interest payments on subsidized portions of the Consolidation Loan during deferment periods.
Federal Student Loan Eligibility
To be eligible for Stafford Loans, the student must meet the following criteria:
- A US citizen or eligible non-citizen;
- Enrolled at least half-time;
- Making satisfactory academic progress;
- Have a valid social security number;
- Have completed the Free Application for Federal Student Aid (FASFA);
- Have not defaulted on other federal obligations
Loan Limits on Federal Stafford Loans
The biggest categories of student loans are Federal Stafford Loans, which have increasing limits as a student goes through college.
For Dependent Undergraduate Students, the limits are as follows:
|
Subsidized Loan Max: |
Total Subsidized & Unsubsidized Amt. |
| First Year |
$3,500.00 |
$3,500.00 |
| Second Year |
$4,500.00 |
$4,500.00 |
| Third Year and Beyond |
$5,500.00 |
$5,500.00 |
For Independent Undergraduate Students, the limits are as follows:
|
Subsidized Loan Max: |
Total Subsidized & Unsubsidized Amt. |
| First Year |
$3,500.00 |
$7,500.00 |
| Second Year |
$4,500.00 |
$8,500.00 |
| Third Year and Beyond |
$5,500.00 |
$10,500.00 |
For Graduate and Professional Students, the limits are as follows:
The aggregate Federal Stafford Loan Limits are as follows:
|
Subsidized Max |
Total Max |
| Dependent Undergraduates |
$23,000.00 |
$23,000.00 |
| Independent Undergraduates |
$23,000.00 |
$46,000.00 |
| Graduate and Professional Students |
$65,500.00 |
$138,500.00 |
Please Note:
Students in certain health professions may qualify for higher aggregate limits.
Dependent versus independent status is based on federal regulations. Independent status may include a student who is:
- at least 24 years old
- an orphan or ward of the court
- a veteran
- a graduate student
- married, or has at least one child or a dependent