Posted on | June 2, 2012
Student Loans are intended to help individuals pay for their University expenses like tuition fees, books and other school costs they may need along the way. Students loan programs, permits college students to borrow money from the government with interests and subsidized loans, giving them the opportunity to postpone their payment until they graduate.
This type of loans may differ when it comes to their interest’s rates, qualification and other factors. The student loan limits 2012 for federal student loan depends on several factors; for example if the student is considered dependent or independent, the time when they applied for it, their schools funding level and the students financial status.
For the Federal Perkins Loan Program, the annual limit for undergraduates is $4,000 each year and their lifetime limit or total amount they can get is $27,500. For professionals or graduate students its $8,000 each year and their lifetime limit is $60,000 and this may include any Federal Perkins Loan, they already borrowed when they were still undergraduates.
For Direct Subsidized Stafford Loan, the loan limit for students that are considered dependent is $3,500 first year; $4.500 on their second year and $5,500 for their 3rd year and their borrowing lifetime limit is up to $20,500, depending on their degree and years in school. For Direct Subsidized Stafford Loan, the student loan limit for independent students is $23,000. Graduate students or professionals can get up $6,500 annually. Plus Loans are intended for the student’s parents and graduate students.
The annual limit depends on the cost of attendance, which is the approximated money that will be required by the school for the whole year which may include some other expenses as well.
For Direct Unsubsidized Stafford Loan, the loan limit for dependent students is $12,000 per year depending on the years in school and degree of the student. For Direct Unsubsidized Stafford Loan, students, graduates or professionals can get up to $12,000 annually, for undergraduates their limit for their 1st year is $6,000, 2nd year is $6,000, 3rd year $7,000. For private student loan limits, students can take out up to the cost of attendance, minus the other help the student gets which can be flexible.
Federal Loans are stricter when it comes to their student loan limits unlike private loans where students can use their borrowed money for any school related needs.