Student Loans are a good way to finance your education; however, just like car loans, mortgages and even credit cards, student loans are loans and must be repaid by the student or the parent, depending upon who takes the loan out.
Student loans have limits. Be sure to read the information below to understand the maximum amounts that are available both per academic year and the lifetime limits (otherwise known as loan aggregates).
It's important that you Know Your Debt .
To review your loan history you will need:
The maximum amount you can borrow each year in Direct Subsidized and Unsubsidized Loans depends on your grade level and on whether you are a dependent student or an independent student. The following table shows the maximum amount of money you may borrow each academic year in Direct Subsidized and Unsubsidized Loans:
|Annual Limits||Dependent Student (1)||Independent Student(2)|
|$5,500 (maximum $3,500 subsidized)||$9,500 ($3,500) (3)|
|$6,500 ($4,500)||$10,500 ($4,500)|
3rd- and 4th-year undergraduate
|$7,500 ($5,500)||$12,500 ($5,500)|
|NA (All graduate and professional students are considered independent.)||$20,500|
(1) Except those whose parents are unable to borrow a PLUS loan.
(2) These limits also apply to dependent students whose parents are unable to borrow a PLUS loan.
(3) The numbers in parentheses represent the maximum amount that may be subsidized.
The actual loan amount you are eligible to receive for an academic year is determined by your school and may be less than the maximum annual amounts shown in the chart above.
These aggregate limits include both Direct Subsidized and Unsubsidized Loans and any subsidized and unsubsidized Federal Stafford Loans received through the Federal Family Education Loan (FFEL) Program.
NSLDS , as mentioned above, is a government web site where students can track and monitor all of their government student loans.
With a Direct PLUS Loan, a graduate/professional student or the parent of a dependent student can borrow up to the cost of the student's attendance minus other financial aid the student receives.
Smart borrowing means limiting your borrowing so that you do not reach your aggregates prior to graduating with your intended degree. It also means graduating with minimal debt. Talk with your advisor or financial aid counselor to establish a plan for minimizing the debt you take on while attending Davenport.