The most common type of federal student loan is the Stafford loan, which is available to all students who meet the government's basic eligibility guidelines. These include being a citizen, national or permanent resident, attending an accredited school and being enrolled at least half-time. However, students can only borrow a limited amount per year. Funds can only be used to pay for school, so students cannot borrow more than the difference between other financial aid and the cost of attendance. In addition, the federal government caps a student's borrowing each year, depending on the student's year in school.
Instructions
1. Contact your school's financial aid office and ask how much your cost of attendance is for this school year. The school calculates the cost of attendance as the sum of all expenses, including tuition, fees, books and living expenses.
2. Subtract each type of financial aid you are already scheduled to receive. These include federal grants and work-study, school grants and all types of scholarships. The result is your maximum borrowing based on cost of attendance.
3. Look up your annual limit in the table on the Federal Student Aid website. Your annual limit is based on your year in school and, for undergraduates, whether you are a dependent or independent student.
4. Add up the amount you have already borrowed through Stafford loans before this school year. If you do not know your total, look it up through the National Student Loan Data System.
5. Subtract your total borrowing from $31,000 if you are a dependent undergraduate, $57,500 if you are an independent undergraduate or $138,500 if you are a graduate student. The result is the amount you are allowed to borrow before you reach your aggregate loan limit.
6. Compare the results in Steps 2, 3 and 5 and choose the least of the three to get your maximum Stafford loan for this year.
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