Confused about Stafford Loans...

Discuss various money matters here. Loans (federal and private), scholarships, lottery winnings, or other school finance related information and queries.
dancer330
Posts: 26
Joined: Sun Jan 24, 2010 2:46 pm

Confused about Stafford Loans...

Postby dancer330 » Sun Jan 24, 2010 2:53 pm

I understand that subsidized Stafford Loans are need-based, but what about unsubsidized Stafford Loans? I believe I've read on this board that "most" people qualify for unsubsidized Stafford Loans regardless of need. What would make someone ineligible? And is the $20,500 available for all people who receive unsubsidized loans or is that the maximum that someone can receive?

Sorry if these are stupid questions... I am new to this.

dancer330
Posts: 26
Joined: Sun Jan 24, 2010 2:46 pm

Re: Confused about Stafford Loans...

Postby dancer330 » Sun Jan 24, 2010 3:33 pm

I think I found the answer to my own question here: http://lawschoolalmanac.blogspot.com/20 ... l-aid.html

"Anyone who is a U.S. citizen and does not have drug convictions or prior defaults on student loans may borrow up to $20,500 per year through the Unsubsidized Stafford Loan program, regardless of "need." If you have demonstrated need based on the federal government's formulas, as applied to the data you provide via the FAFSA, then you may borrow up to $8,500 out of the total of $20,500 as a Subsidized Stafford Loan. For Subsidized loans, the feds will pay the interest on the loan as long as you remain in school."


...right?

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im_blue
Posts: 3276
Joined: Sun Apr 12, 2009 3:53 am

Re: Confused about Stafford Loans...

Postby im_blue » Sun Jan 24, 2010 8:24 pm

Right, anyone can borrow $20,500 of Unsubsidized Stafford. If you have "need" then up to $8,500 of that can be Subsidized Stafford.




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