Sallie Mae 2007 Annual Report Download - page 214

The following chart shows historic loan limits:
Borrower’s Academic Level Base
Amount Subsidized and Unsubsidized
On or After 10/1/93
Subsidized
On or After
1/1/87
All Students
Subsidized and
Unsubsidized On
or After 10/1/93
Additional
Unsubsidized
Only On or
After 7/1/94
Maximum Annual
Total Amount
Independent Students
Undergraduate (per year):
1st year .................... $ 2,625 $ 2,625* $ 4,000 $ 6,625
2nd year ................... $ 2,625 $ 3,500* $ 4,000 $ 7,500
3rd year and above ........... $ 4,000 $ 5,500 $ 5,000** $ 10,500
Graduate (per year) . ............ $ 7,500 $ 8,500 $10,000* $ 18,500
Aggregate Limit:
Undergraduate . . . ............ $17,250 $23,000 $23,000 $ 46,000
Graduate (including
undergraduate) . ............ $54,750 $65,500 $73,000 $138,500
For the purposes of the tables above:
• The loan limits include both FFELP and FDLP loans.
• The amounts in the columns labeled “Subsidized and Unsubsidized” represent the combined maximum
loan amount per year for Subsidized and Unsubsidized Stafford Loans. Accordingly, the maximum
amount that a student may borrow under an Unsubsidized Stafford Loan is the difference between the
combined maximum loan amount and the amount the student received in the form of a Subsidized
Stafford Loan.
Independent undergraduate students, graduate students and professional students may borrow the
additional amounts shown in the next to last columns in the charts above. Dependent undergraduate students
may also receive these additional loan amounts if their parents are unable to provide the family contribution
amount and it is unlikely that they will qualify for a PLUS Loan.
• Students attending certain medical schools are eligible for higher annual and aggregate loan limits.
• The annual loan limits are sometimes reduced when the student is enrolled in a program of less than
one academic year or has less than a full academic year remaining in his program.
Repayment. Repayment of a Stafford Loan begins 6 months after the student ceases to be enrolled at
least half time. In general, each loan must be scheduled for repayment over a period of not more than 10 years
after repayment begins. New borrowers on or after October 7, 1998 who accumulate outstanding loans under
the FFELP totaling more than $30,000 are entitled to extend repayment for up to 25 years, subject to
minimum repayment amounts and FFELP Consolidation Loan borrowers may be scheduled for repayment up
to 30 years depending on the borrower’s indebtedness. The HEA currently requires minimum annual payments
of $600, unless the borrower and the lender agree to lower payments, except that negative amortization is not
allowed. The Act and related regulations require lenders to offer the choice of a standard, graduated, income-
sensitive and extended repayment schedule, if applicable, to all borrowers entering repayment. The 2007
legislation introduces an income-based repayment plan on July 1, 2009 that a student borrower may elect
during a period of partial financial hardship and have annual payments that do not exceed 15% of the amount
by which adjusted gross income exceeds 150% of the poverty line. The Secretary repays or cancels any
outstanding principal and interest under certain criteria after 25 years.
Grace Periods, Deferral Periods and Forbearance Periods. After the borrower stops pursuing at least a
half-time course of study, he must begin to repay principal of a Stafford Loan following the grace period.
However, no principal repayments need be made, subject to some conditions, during deferment and
forbearance periods.
A-9