Did you know there is a limit you can borrow on your Stafford loans?
These loans work a little like a credit card–any money you pay towards the principal of the loans becomes available to you again.
Many students who are only planning on getting their Diploma or AAS degree may never reach their limit; however, they have a greater chance of reaching their limit if they are going half time and withdraw or fail several classes.
Remember a few weeks ago I talked about the cost of dropping or failing classes and that reaching Stafford loan limits could be one of the results of doing so? For students pursuing their BS degree, the likelihood of reaching that limit is increased, especially for those students not going full-time.
Another financial aid advisor, Yolanda, and I monitor your loan limits every time we renew your loans. When we feel you are running a risk of reaching that limit prior to graduation, we will counsel you.
To be proactive you can ask us where you are on your
limits at any time–ultimately this is your future and your
To help manage your loan limits the government has set up
a website called the National Student Loan Data System (NSLDS) for schools and
students to view your Stafford loans. This site can be accessed at www.nslds.ed.gov .
Are you planning on continuing for your Masters, Doctorate, or Juris Doctor (Law Degree)? Don’t worry if you complete your bachelors and continue on for a higher degree–the loan limits increase.