Wanted: Second Semester Funds

Many of you will be receiving your second Stafford loan disbursement, which will be applied toward your upcoming spring semester within the next few weeks. The sad thing is for many it won’t be enough to cover all your expenses.

If you are seeking alternative means to finance your second semester (click here).

Also, this is a good time to remind you to file your 2009/2010 financial aid Application” rel=”external”>FAFSA immediately after the new year hits! If you haven’t gotten it already, the new FAFSA eBook for the 2009-2010 FAFSA is out and available. It’s a comprehensive line by line guide to the new FAFSA that becomes available in just TWO DAYS, so make sure you grab a copy of the eBook.

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Five most recent Stafford loan help blog posts:

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I Don’t Want To Pay For College

If you clicked on this blog I like you already. You are a bargain shopper. I mean why pay full price if you can get a deal? Heck, even millionaires are looking for deals. I once read how country star Shania Twain still cuts out coupons. Her rationale, “Why pay full price if I don’t have to?”

My inspiration for writing this blog is the thousands of college students I speak to each year who can not afford to go to school. A lot of them end up going to work for minimum wage and staying home with Mom and Dad until they’re 35. Now I’m not saying that’s a worthless existence by any means, but some do aspire for more. If you are one of those who reach for the stars than please read on. If you’re not, I bid you farewell as the remainder of this blog is not for you.

Have you ever heard of the Reserve Officers Training Corps (ROTC)? ROTC is a college-based, officer commissioning program that can foot the bill for your ENTIRE college education cost. But in return for them shelling out tens of thousands of dollars there is a non monetary price you must pay in return.

In most cases you will owe that particular branch of the military four years of active duty as a commissioned officer and four years in the reserve after graduation. Until that time you are required to stay fit, take one extra class each semester, and do volunteer work. Also, during a month over the summer you would most likely be required to go away for activities as well.

Additionally you may be required to wear your military uniform on campus one day per week and avoid the weekend keg parties to uphold the values of an ROTC recruit. This route is not for everyone but desperate times call for desperate measures. You have to think outside that box sometimes to get what you want.

Of course you may be able to land a sweet scholarship or two as well and avoid this path altogether. We have a comprehensive list of scholarships you may qualify for (click here to view). We also give away thousands of dollars each month to students just for signing up at scholarshippoints.com. It doesn’t cost you a dime and you could stand to win some benjamins.

As Tim Gunn from Project Runway says, “Make it work!”

So How Much Can You Get……

How much can I borrow?

It depends on your year in school and whether you have a subsidized or unsubsidized Direct or FFEL Stafford Loan. A subsidized loan is awarded on the basis of financial need. If you’re eligible for a subsidized loan, the government will pay (subsidize) the interest on your loan while you’re in school, for the first six months after you leave school, and if you qualify to have your payments deferred. Depending on your financial need, you may borrow subsidized money for an amount up to the annual loan borrowing limit for your level of study (see below).

You might be able to borrow loan funds beyond your subsidized loan amount even if you don’t have demonstrated financial need. In that case, you’d receive an unsubsidized loan. Your school will subtract the total amount of your other financial aid from your cost of attendance to determine whether you’re eligible for an unsubsidized loan. Unlike a subsidized loan, you are responsible for the interest from the time the unsubsidized loan is disbursed until it’s paid in full. You can choose to pay the interest or allow it to accrue (accumulate) and be capitalized (that is, added to the principal amount of your loan). Capitalizing the interest will increase the amount you have to repay.

You can receive a subsidized loan and an unsubsidized loan for the same enrollment period as long as you don’t exceed the annual loan limits.

If you’re a dependent undergraduate student (excluding students whose parents cannot borrow PLUS Loans), each year you can borrow up to:

* $5,500 (for loans first disbursed on or after July 1, 2008) if you’re a first-year student enrolled in a program of study that is at least a full academic year. No more than $3,500 of this amount can be in subsidized loans.
* $6,500 (for loans first disbursed on or after July 1, 2008) if you’ve completed your first year of study and the remainder of your program is at least a full academic year. No more than $4,500 of this amount can be in subsidized loans.
* $7,500 (for loans first disbursed on or after July 1, 2008) if you’ve completed two years of study and the remainder of your program is at least a full academic year. No more than $5,500 of this amount can be in subsidized loans.

If you’re an independent undergraduate student (and a dependent student whose parents have applied for but were unable to get a PLUS Loan (a parent loan)), each year you can borrow up to:

* $9,500 (for loans first disbursed on or after July 1, 2008) if you’re a first-year student enrolled in a program of study that is at least a full academic year. No more than $3,500 of this amount may be in subsidized loans.
* $10,500 (for loans first disbursed on or after July 1, 2008) if you’ve completed your first year of study and the remainder of your program is at least a full academic year. No more than $4,500 of this amount may be in subsidized loans.
* $12,500 (for loans first disbursed on or after July 1, 2008) if you’ve completed two years of study and the remainder of your program is at least a full academic year. No more than $5,500 of this amount may be in subsidized loans.

If you’re a graduate or professional degree student, each year you can borrow up to:

* $20,500. No more than $8,500 of this amount may be in subsidized loans.

When you graduate with a graduate or professional degree, the maximum total debt allowed from Stafford Loans is $138,500. No more than $65,500 of this amount may be in subsidized loans. This maximum total graduate debt limit includes Stafford Loans received for undergraduate study. However, the aggregate loan limit for graduate and professional students enrolled in certain approved health profession programs is $224,000.

These amounts are the maximum yearly amounts you can borrow in both subsidized and unsubsidized FFELs or Direct Loans, individually or in combination. Because you can’t borrow more than your cost of attendance minus the amount of any Federal Pell Grant you’re eligible for and minus any other financial aid you’ll get, you may receive less than the annual maximum amounts.