Stafford Loan Maximums

Loans are a common way for students to finance their education. Undergraduate Federal Stafford Loan maximums adjust as a student progresses toward their degree and are different depending on the student's dependency status.  Additionally, eligibility is split between subsidized and unsubsidized versions that denote if the government is subsidizing (paying) the interest on students' behalf while they are enrolled.

MAXIMUM LOAN AMOUNTS
While loan maximums remained unchanged for many years, Congress provided additional unsubsidized loan eligibility to students as part of the Ensuring Access to Student Loans Act of 2008. Graduate loan limits were unchanged.

Most simply, loan maximums increased July 1, 2008, by up to $2000 in unsubsidized funds. Because the funds are unsubsidized, they are interest-bearing at 6.8% while the student is enrolled. As with all unsubsidized loan borrowing, the student can elect to make interest-only payments while in school or allow the interest to capitalize onto the principal (resulting in being charged interest-on-interest when in repayment). Arrangements for paying interest while enrolled are made with your lender.

The chart below illustrates current maximum eligibility.

Dependent Students (except in cases of Parent PLUS denial)	Base Award*	Additional Unsub Eligibility		Current Combined Maximum
		Prior to 07/01/08	Effective 07/01/08	Sub & Unsub Loan
Freshman	$3,500	0	$2,000	$5,500
Sophomore	$4,500	0	$2,000	$6,500
Junior or Senior	$5,500	0	$2,000	$7,500
Independent  Students (& Dependent Students with a Parent PLUS denial)	Base Award*	Additional Unsub Eligibility		Current Combined Maximum
		Prior to 07/01/08	Effective 07/01/08	Sub & Unsub Loan
Freshman	$3,500	$4,000	$6,000	$9,500
Sophomore	$4,500	$4,000	$6,000	$10,500
Junior or Senior	$5,500	$5,000	$7,000	$12,500
* Subsidized (interest-free for the student while in school) loan, unsubsidized (interest-bearing) loan, or a combination of both based on eligibility.

REVIEWING ELIGIBILITY & INCREASING THE LOAN
Federal Stafford Loan awards are made using the best information on file at the time of awarding to project your appropriate class level and loan amount.

Upon accepting any portion of the Stafford Loan, your financial aid award offer will reflect your accepted amount. Students who decline a portion of their loan yet remain eligible may request a reinstatement of an offer/increase in their loan.

Undergraduate students who review their financial aid award and find their subsidized and unsubsidized Stafford Loan combined amount is less than the "Current Combined Maximum" on the chart or who change class level mid-year may be eligible for additional funding. An exception would be for students whose total aid package has reached the budgeted cost of education.

Students wishing to increase their loans within the described limits should consult One Stop Student Services (onestop@uc.edu; 513-556-1000; 2nd Floor University Pavilion) to have eligibility evaluated.

Loan increases, when a student is deemed eligible, will appear as part of the award package within 5 business days. Please do not make multiple requests within a week's timeframe.

Consider utilizing only part of your loan eligibility. By not fully borrowing, you save on your college debt.

As well, think about reserving untapped loan funds as a rainy day fund. As long as you are continually enrolled autumn-winter-spring, you can request an increase at any time during the academic year should a financial emergency arise.

Students planning to attend summer should also consider saving a portion of their loan eligibility for summer. Summer loan requests can be made beginning March 1.