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How much can you get from a student loan?

Zoe Lee | 2018-06-13 05:39:22 | page views:1367
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Harper Adams

Studied at the University of Zurich, Lives in Zurich, Switzerland.
As an expert in the field of financial aid and student loans, I can provide a comprehensive answer to your question about the amount one can get from a student loan. It's important to note that the amount a student can borrow from a student loan varies greatly depending on several factors, including the type of loan, the student's financial need, the cost of attendance at the school, and the student's year in school.

Federal Student Loans
Federal student loans are a common source of funding for college education in the United States. There are several types of federal loans, and each has its own limits and requirements.

1. **Subsidized and Unsubsidized Stafford Loans (Direct Loans)**: These loans are available to both undergraduate and graduate students. For undergraduates, the annual limit is typically $5,500 for the first year, $6,500 for the second year, and $7,500 for subsequent years. The aggregate (total) limit for these loans is $31,000 for dependent undergraduate students and $57,500 for independent undergraduate students.


2. Grad PLUS Loans: Graduate students and those pursuing a professional degree can borrow additional funds through the Grad PLUS program. There is no fixed annual limit, but the total cannot exceed the cost of attendance minus any other financial aid received.


3. Perkins Loans: As you mentioned, Perkins Loans are for both undergraduate and graduate students with exceptional financial need. The annual loan limit is up to $5,500, but the actual amount is determined by the financial need, other aid received, and the availability of funds at the institution.

Private Student Loans
Private loans are offered by banks, credit unions, and other financial institutions. These loans typically have higher interest rates and less flexible repayment options compared to federal loans. The amount a student can borrow from a private loan depends on the lender's criteria, which often include credit score, income, and other financial factors.

Factors Affecting Loan Amounts
- Financial Need: The Expected Family Contribution (EFC) calculated from the Free Application for Federal Student Aid (FAFSA) determines the financial need.
- Cost of Attendance (COA): This includes tuition, fees, room and board, books, supplies, and other school-related expenses.
- Year in School: The amount a student can borrow often increases with each year in school.
- Aggregate Limits: There are maximum amounts that can be borrowed over the course of study.
- Loan Usage: Some loans are for tuition and fees only, while others can be used for living expenses.

Repayment and Interest
It's also important to consider the repayment terms and interest rates on student loans. Federal loans often have lower interest rates and more flexible repayment plans, including income-driven repayment options and loan forgiveness programs for those who work in public service. Private loans, on the other hand, may have higher interest rates and less flexible repayment terms.

Conclusion
When considering how much you can get from a student loan, it's crucial to understand the different types of loans available, your financial need, and the specific policies of the lending institution. It's always a good idea to explore all financial aid options, including scholarships, grants, and work-study programs, before relying heavily on loans. Remember, while loans can make education more accessible, they also come with a responsibility to repay with interest.

Benjamin Turner

Works at the International Air Transport Association, Lives in Montreal, Canada.
If you are an undergraduate student: Up to $5,500 per year in Perkins Loans depending on your financial need, the amount of other aid you receive, and the availability of funds at your college or career school.

Scarlett Brown

QuesHub.com delivers expert answers and knowledge to you.
If you are an undergraduate student: Up to $5,500 per year in Perkins Loans depending on your financial need, the amount of other aid you receive, and the availability of funds at your college or career school.
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