Loan Increases (beginning July 2008)

As part of the Ensuring Access to Student Loans Act of 2008, Congress provided for additional loan borrowing for undergraduate students. Because this law was signed on May 7, 2008, and did not become effective until July 1, 2008, the University of Cincinnati was not able to make these loan increases available as part of most student award offers made prior to mid-July.

Undergraduate students considering additional borrowing for academic year 2008-09 should read this information carefully to understand their eligibility and options. Graduate loan limits remain unchanged.

ADDITIONAL UNSUBSIDIZED LOAN ELIGIBILITY
The new loan borrowing comes in the form of up to $2000 in unsubsidized loans for loan periods including or after July 1, 2008.

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 the increased eligibility.

Dependent Students (except in cases of Parent PLUS denial)	Base Award*	Additional Unsub Eligibility		New Combined Maximum
		Prior to 07/01/08	Effective 07/01/08	Sub & Unsub Loan
Freshman	$3500	0	$2000	$5500
Sophomore	$4500	0	$2000	$6500
Junior or Senior	$5500	0	$2000	$7500
Independent  Students (& Dependent Students with a Parent PLUS denial)	Base Award*	Additional Unsub Eligibility		New Combined Maximum
		Prior to 07/01/08	Effective 07/01/08	Sub & Unsub Loan
Freshman	$3500	$4000	$6000	$9500
Sophomore	$4500	$4000	$6000	$10500
Junior or Senior	$5500	$5000	$7000	$12500
* Subsidized (interest-free while in school) loan, unsubsidized (interest-bearing) loan, or a combination of both based on eligibility.

DETERMINING ELIGIBILITY 
Undergraduate students who review their financial aid award for 2008-09 and find their offered subsidized and unsubsidized Federal Stafford Loan combined amount is less than the "New Combined Maximum" on the chart are likely eligible for additional funding. An exception would be for students whose total aid package has reached the budgeted cost of education.

Students who may have increased eligibility for 2008-09 should follow these steps:

• Send an email (including your name and UC-ID) to loan.counseling@uc.edu to request a loan increase.
• Specify the additional amount you wish to borrow. Failure to do so will assume you desire the full increased eligibility.

Requests can also be made in person at One Stop Student Services (2nd Floor University Pavilion).

Loan increases will appear as part of the award package within 5 business days. Please do not make multiple requests within a week's timeframe. Students found to be ineligible for a loan increase will be notified via email to their Bearcat Online account.

By not increasing your loan, you save on your college debt.

As well, consider using this loan limit increase 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 2009 should also consider using this $2000 increase as a summer-only loan as summer aid is extremely limited. Summer 2009 loan requests can be made beginning March 1, 2009.