“Loan Limit Up, Loan Money Down”
The news was published in an online real estate site “thestreet.com”. It writes about loan limit and loan money in details. It states, “The message is loud and clear: Don't wait until your tuition bill is due to check with lenders. Although Congress took steps to create liquidity in the student loan market by making the Treasury a lender of last resort, many banks are still unwilling to add these loans to their portfolio.
With lenders limiting the total amount in their student loan portfolio, many will find it is "first come, first served" for the money that is available.
For this year, Stafford loans limits have been increased to $5,500 for freshmen, up from $3,500. And seniors can borrow as much as $7,500. Subsidized Stafford loans -- on which interest does not start accruing until graduation -- are based on need, as determined by the FAFSA form.
Even students who don't think they could qualify based on need may receive approval for unsubsidized Stafford loans, where interest starts accruing immediately but can be deferred until graduation.
The subsidized Stafford loans will carry a fixed rate of 6% when you graduate. Unsubsidized Stafford loans carry a lifetime rate of 6.8%.”
Source from: Clock's Ticking for Student Loan Applicants
With lenders limiting the total amount in their student loan portfolio, many will find it is "first come, first served" for the money that is available.
For this year, Stafford loans limits have been increased to $5,500 for freshmen, up from $3,500. And seniors can borrow as much as $7,500. Subsidized Stafford loans -- on which interest does not start accruing until graduation -- are based on need, as determined by the FAFSA form.
Even students who don't think they could qualify based on need may receive approval for unsubsidized Stafford loans, where interest starts accruing immediately but can be deferred until graduation.
The subsidized Stafford loans will carry a fixed rate of 6% when you graduate. Unsubsidized Stafford loans carry a lifetime rate of 6.8%.”
Source from: Clock's Ticking for Student Loan Applicants
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