Maximum Amount of Direct to Student Subsidized Loan
The following are the subsidized loan limits a student can make depending on his grade level. For details as to how much unsubsidized loan the student can make, please refer to the article about “Information about Unsubsidized Loan Programs". The total subsidized and unsubsidized loans should not exceed the student’s loan eligibility as determined by the school. In like manner, the school attended will also determine the dependent or independent status of the student.
Grade Level _____________Subsidized Loan Limit_______________ Status________
1st Year or Freshman_____________$ 3.500___________________ Dependent/Independent
2nd Year or Sophomore___________ $ 4,500___________________Dependent/Independent
3rd Year or Junior and Beyond______$ 5,500___________________ Dependent/Independent
Graduate or Professional__________ $ 8,500___________________ Independent
Once approved, the proceeds of a subsidized direct-to-student loan will be released to the school in two parts; the first will be to pay for the fall semester tuition and fees, and the second for winter semester tuition and fees. The school is required to notify the student every time the loan is released; the notification should be received by the student within 30 days after the school has duly applied the loan payment for tuition and fees.
The funds will be released to the student only if the tuition and fees have been satisfied; any excess will be used by the student to defray other costs of attendance such as books, computer and lodging costs. The manner by which the excess funds will be released to the student will be in accordance with the school’s policy.
Renewal of the loan for the succeeding academic year will require the student to re-apply under the same eligibility requirements and procedures, including the submission of FAFSA and school certifications.