May 7, 2008

Bush signs student loan bill

Posted in Misc at 1:36 PM by Joe From Boston


The President signed the bill this afternoon. Here are some aspects that might affect you:

Stafford Loans:

  • Changes apply to loans disbursed on or after July 1, 2008
  • It raises annual borrowing limit for unsubsidized Stafford loans for dependent undergraduate students (or students whose parents can’t obtain federal parent loans because of poor credit) by $2,000 to $6,000 for 1st year& 2nd year, and to $7,000 for 3rd, 4th and beyond.
  • It increases the aggregate amount an undergraduate dependent student may borrow under the unsubsidized Stafford loan program to $31,000.
  • It increases the annual borrowing limit for unsubsidized Stafford loans for independent undergraduate first and second year students (or students whose parents can’t obtain federal parent loans because of poor credit) by $2,000 to $6,000
  • It increases the maximum annual amount for undergraduate independent students who have completed two years of study also by $2000 to $7000.
  • It increases the aggregate amount of unsubsidized Stafford loans for an undergraduate independent student to $57,500.
  • It provides for a period of deferment until 6 months after the child on a PLUS loan drops below half time or graduates.

There are several other provisions I won’t get into here, such as Lender-of-Last-Resort and creating an artificial secondary market for student loans at the taxpayers’ expense.

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4 Comments »

  1. Jennifer – what kind of loan is it? Private? Stafford? PLUS?

  2. Jennifer Kindle said,

    My next student loan is to be disbursed July 10, so according to what I’ve read I’m expecting more money, but my school say the change isn’t until the next term in September. How can I find out which is correct?

  3. R.W said,

    I’ve had loans in excess of $300,000 and they are terrible. There are other ways to obtain money instead of the traditional method of borrowing.

    I wish that schools taught students how to be entrepreneurs. Students need to learn how to think outside the box, before they sign away their life to a repayment plan that may take them 10 years.

    With todays economy and the direction in which its going, we are producing a generation of burger flipper and people having to carry 2 or 3 jobs just to survive.

    Students need to start home businesses before they graduate. They will need to be able to compete against the rest of the world. As more and more countries go online, the competition will get bigger and bigger.

    [Edited to remove advertisement]

  4. […] admin wrote an interesting post today onHere’s a quick excerptIt increases the aggregate amount an undergraduate dependent student may borrow under the unsubsidized Stafford loan program to $31000. It increases the annual borrowing limit for unsubsidized Stafford loans for independent … […]


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