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While Federal Loans have increased the amount of loan assistance available to most students, it is important to remember that you should only borrow the amount that you need.
When you borrow, it is important to think about the amount of monthly payment after graduation. An easy way to calculate a monthly payment based on 6% interest and ten year repayment is to multiply each $1,000 borrowed by $11.00.
$10,000 borrowed at 6% interest repay over ten years=$111.00 monthly payment.
New Federal Loan Limits for 2008-09 Dependent Students (Except students whose parents cannot borrow PLUS) | | Base Amount | Additional Unsubsidized Loan Amount | Maximum Loan Amount | Freshman | $3,500 | $2,000 | $5,500 | Sophomore | $4,500 | $2,000 | $6,500 | Junior or Senior | $5,500 | $2,000 | $7,500 | Independent Students and students whose parents cannot borrow PLUS) | | Base Amount | Additional Unsubsidized Loan Amount | Maximum Loan Amount | Freshman | $3,500 | $6,000 | $9,500 | Sophomore | $4,500 | $6,000 | $10,500 | Junior or Senior | $5,500 | $7,000 | $12,500 | Graduate and Professional Students | | Base Amount | Additional Unsubsidized Loan Amount | Maximum Loan Amount | | $8,500 | $12,000 | $20,500 | New Aggregate Loan Limits Dependent Students | Independent Students | Graduate Students | $31,000 | $57,500 | $138,500 | $23,000 maximum in subsidized | $23,000 maximum in subsidized | $65,500 maximum in subsidized |
Action Steps New Students Awarded from March-May | All Students Awarded in June and Later | * If you would like to borrow additional unsubsidized loan funds, please e-mail your request to ask-ofa@umd.umich.edu. | * No action needed new loan amounts will be included with award | * Your e-mail must include the exact dollar amount of your increase, your full name and your UMID. |
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