Federal Subsidized Loans
Federal Student loans are funded through the federal government. To receive a federal loan, you must first fill out the Free Application for Federal Student Aid (FAFSA) at studentaid.gov. For the on-line application and more information log on to FAFSA.ed.gov.
Depending on the under graduate student’s financial need, you may borrow subsidized money for an amount up to the annual loan-borrowing limit. Students must demonstrate financial need to apply for a subsidized loan. If you are eligible for a subsidized loan, the government will pay the interest while you are in school.
Federal Unsubsidized Loans
Unlike a subsidized loan, the student is responsible for the interest from the time the unsubsidized loan is disbursed until it is paid in full. You can choose to pay the interest or allow it to accumulate and be added to the principal amount of your loan.
STAFFORD LOAN LIMITS
The Federal Stafford Subsidized and Unsubsidized Loan programs carry both annual and cumulative (lifetime) limits. Your SAR (Student Aid Report) lists your cumulative loans, but it is important that you also keep records of all your loan transactions. You can also look up your loan history online at: https://nslds.ed.gov/nslds/nslds_SA/.
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Stafford Maximums beginning 2012-2013 |
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Student Level- |
Maximum Stafford (subsidized and unsubsidized) |
Maximum Subsidized |
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Dependent freshman |
$5,500 |
$3,500 |
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Dependent sophomore |
$6,500 |
$4,500 |
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Dependent junior or senior |
$7,500 |
$5,500 |
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Independent freshman |
$9,500 |
$3,500 |
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Independent sophomore |
$10,500 |
$4,500 |
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Independent junior or senior |
$12,500 |
$5,500 |
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Graduate/professional |
$20,500 |
0 |
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Lifetime limits (beginning 2008-2009) |
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Student Level |
Maximum Stafford (subsidized and unsubsidized) |
Maximum Subsidized |
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Dependent undergraduate |
$31,000 |
$23,000 |
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Independent undergraduate |
$57,500 |
$23,000 |
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Graduate/Professional |
$138,500* |
$65,500* |
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*The graduate debt limit includes loans received for undergraduate study and Subsidized loans received prior to July 1, 2012
If you reach your lifetime loan limit, you cannot receive any more of that type of loan. If you exceed your limit, aid already disbursed will be returned to the lender or may have to be repaid by you. We encourage that you borrow only what you need for educational expenses, and to keep track of your cumulative debt. If you need additional loan funding to assist you with continuing your education, alternative lending may be an option.
Additional Federal Loans for Graduate and Doctoral Students
Federal Graduate and Professional PLUS Loan
The Graduate and Professional PLUS loan program offers graduate and professional students the opportunity to borrow federal loans up to their cost of attendance minus all other aid sources. To apply for a PLUS loan, graduate and professional students must, fill out the FAFSA, pass a credit check, and applied for the maximum Stafford loan for which they qualify. PLUS loans may be used for tuition, housing, food, books and some transportation expenses.
A Federal Perkins Loan is a low-interest loan (5 percent) for students with exceptional financial need. These loans are made through the Office of Financial Aid. Eligible students can borrow up to $4,000 for each year of study depending on when you apply, your financial need, and the funding level of the school.
Perkins Loan borrowers have the right to cancel their loan disbursements within 14 days of the disbursement notice. Should you decide to cancel the disbursement of your Perkins Loan, you should contact the One Stop Center at Enrollmentservices@ltu.edu in writing within the specified time period. By canceling the disbursement, you will be responsible for any unpaid tuition and fees, as well as repayment of loan funds already paid to you.