June 19, 2008 |
New FFELP Loan Limits Beginning July 1, 2008
Utah Higher Education Assistance Authority posts this reminder that increased loan limits for Unsubsidized FFELP Loans become effective for loans first disbursed on or after July 1, 2008. The “Ensuring Continued Access to Student Loans Act” (ECASLA), signed into law on May 7, 2008, authorized the increases.
The new bill raises the annual Stafford limits for dependent undergraduate students by adding $2,000 in additional unsubsidized loan eligibility. The bill also increases the annual unsubsidized loan limits by $2,000 for dependent students whose parents are unable to borrow a PLUS loan. Furthermore, the additional unsubsidized Stafford annual limit is also increased by $2,000 for independent undergraduate students.
ECASLA adds new provisions for aggregate loan limits for undergraduate dependent and undergraduate independent borrowers as well. However, the bill authorized no changes in loan limits for graduate and professional students.
For reference, below are charts containing the new loan limits.
Any questions related to this Bulletin should be directed to UHEAA Policy and Training at 801.321.7166, or by e-mail to mjohnson@utahsbr.edu.
Annual Loan Limits for Undergraduate Students |
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Dependent Students |
Base Subsidized and Unsubsidized Amount |
Additional Unsubsidized Amount before July 1, 2008 |
Additional Unsubsidized Amount on/after July 1, 2008 |
First-year undergraduate |
$3,500 |
$0 |
$2,000 |
Second-year undergraduate |
$4,500 |
$0 |
$2,000 |
Third-year undergraduate |
$5,500 |
$0 |
$2,000 |
Fourth-year undergraduate |
$5,500 |
$0 |
$2,000 |
Independent Students and Dependent students whose parent cannot borrow PLUS |
Base Subsidized and Unsubsidized Amount |
Additional Unsubsidized Amount before July 1, 2008 |
Additional Unsubsidized Amount on/after July 1, 2008 |
First-year undergraduate |
$3,500 |
$4,000 |
$6,000 |
Second-year undergraduate |
$4,500 |
$4,000 |
$6,000 |
Third-year undergraduate |
$5,500 |
$5,000 |
$7,000 |
Fourth-year undergraduate |
$5,500 |
$5,000 |
$7,000 |
Undergraduate Aggregate Loan Limits |
||
|
Subsidized Limit |
Unsubsidized Limit (including $23,000 subsidized limit) |
Undergraduate dependent students |
$23,000 |
$31,000 |
Independent students and dependent students whose parents cannot borrow PLUS |
$23,000 |
$57,500 |
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