A Student’s Guide to the New Stafford Loan Policy
It seems like Stafford Loan policy changes every year and it is beginning to become difficult to keep up with what is happening. Students are faced with enough challenges between attending class and attempting to understand their financial aid and how it will effect their daily life. Many independent students rely on their financial aid to survive while they are in school, and because of this it is extremely important for them to understand how new changes in Stafford Loan policy due to the Ensuring Continued Access to Student Loans Act of 2008 will effect them directly.
While the act will have many effects on schools and lenders, from a student’s perspective this is not of vital importance. What is important is what effects the act will have on the students themselves. For years Stafford Loans have been a way to pay for college and living expenses while in college, and this is not to change for students. The Act of Ensuring Continued Access to Student Loans will actually help many students out.
Originally, Stafford Loans were limited to aggregate totals of $46,000 for independent undergraduate students. With the implementation of the new Stafford loan policy and in an effort by congress to assure that students may continue to borrow funds to pay for their education, the new Stafford Loan aggregate limit for independent undergraduate students is $57,500. This increase will likely be a great help to many students across the country who otherwise may not have been able to continue their education without the Stafford loan increase.
Other parts of the bill that congress implemented regarding student loans will help parents of dependent undergraduate students. Under the new program, parents who take out a PLUS loan in order to finance their child’s education will not be required to pay this loan back until after the student finishes school or stops attending. This new rule comes after parents were previously required to make PLUS loan payments immediately following receipt of the loan proceeds rather than having the payments deferred while the student was in school.
Stafford Loan annual maximums increased with the passing of HR 5715 Ensuring Continued Access to Student Loans. While Stafford loans had an annual maximum of $10,500 for 3rd and 4th year undergraduate students prior to the July 1, 2008 implementation of the new Stafford loan policy, the annual limit has now increased to a total of $12,500 for these students. This increase is due largely in part to the fact that the cost of attendance at many schools has risen to a point that deters students from continuing their education at all. Hence, it is really important choose the best licensed money lender to help you with any endeavor that you want to pursue. An ideal lender doesn’t impose high interest rates and the contract or payment policy should be very clear to both parties.
The new Stafford loan policy makes it easier for many students to continue their education. During a time of financial distress for many, congress and the passing of the HR 5715 bill Ensuring Continued Access to Student Loans Act of 2008 is a gift to many students and parents of college students. The country has taken into consideration the fact that the success of our country’s future depends on the education of the citizens, and the education of the citizens is dependent upon the financing options that are made openly and easily accessible to those who are interested in a higher education.
Jesse Waters is head content writer and article at God Men. He found out about his love for writing when he was struggling with cancer. His works are very sensitive and he writes with his heart.