Direct Loan Limits for ALL Students

studying at LIPA – 2015/16

2015/16 Direct Loan Limits: Undergraduate Students Dependent – Student whose parents provide more than half their financial support. A dependant is not married, is under 24 years of age, has no legal dependants, is not an orphan or ward of the court, nor a veteran of the US Armed Forces. Parents of a dependant student must submit parental information on the FAFSA in order for their son or daughter to be considered for financial aid.

Independent – A student who is either married, 24 years of age or older, has legal dependants other than a spouse, is an orphan or ward of the court or a veteran of the U.S Armed Forces.

Subsidised - US Department of Education will pay the interest gained on your loan whilst you are studying, during any authorised period of deferment and for the 6 month grace period after you have graduated.

Unsubsidised – You, the borrower are responsible for any interest that accrues over the life time of the loan. Interest payments can be deferred until after graduation.

Dependent Undergraduates

Independent Undergraduates & Others Without Access to the PLUS loan

Subsidised Unsubsidised Total Annual loan limit (Subsidised & Unsubsidised)

First Year $3,500 $2,000 $5,500

Second Year $4,500 $2,000 $6,500

Third Year $5,500 $2,000 $7,500

Subsidised Unsubsidised Total Annual loan limit (Subsidised & Unsubsidised)

First Year $3,500 $6,000 $9,500

Second Year $4,500 $6,000 $10,500

Third Year $5,500 $7,000 $12,500

Dependent students are subject to lower loan limits because their parents may have access to the Parent PLUS loan programme. Under the Parent Plus loan programme, parents can borrow up to the full Cost of Attendance minus any Direct loan borrowings.

Independent students have higher Direct loan limits as they do not have access to the Parent PLUS loan programme. They can however, supplement their Direct loan borrowings with other forms of non- Federal educational loans e.g. private loans. However, these loans are credit based so students may require a co-signer. Contact us for advice if you are thinking of taking out such loans.

With subsidised loans, The US Department of Education pays the interest on the loan whilst the student is enrolled at LIPA, during any authorised period of deferment and for the six-month grace period given after the student graduates. Subsidised loans are awarded on the basis of a students financial need. Students financial need is calculated using the Cost of Attendance Calculator form.

A student who does not demonstrate sufficient financial need is typically eligible for an unsubsidised loan. An unsubsidised loan can also be used to supplement a subsidised loan. With the unsubsidised loan, the student is responsible for the interest that accrues on the loan from the day the money is disbursed. A student can defer payment of their loan until 6 months after they have graduated.

To be entitled to either a subsidised or unsubsidised Direct loan, an undergraduate student must not have defaulted on a previous loan and must not have reached Direct Loan program aggregate loan limits for subsidised and unsubsidised loans.

Students will usually supplement their Direct loan borrowings in a number of ways including:

• Personal savings, family contributions;

• Parent PLUS loan (dependant students only) or;

• Other form of non- education loans e.g. private loans.

Students should be aware that there are strict US Department regulations with regards to the disbursement of loan funds to students.

FAFSA - The form that must be completed by students and parents applying for the Direct Loan Program.

Subsidised - US Department of Education will pay the interest gained on your loan whilst you are studying, during any authorised period of defermentand for the 6 month grace period after you have graduated.

Unsubsidised – You, the borrower are responsible for any interest that accrues over the life time of the loan. Interest payments can be deferred until after graduation.

Disbursed – The release of loan funds to the school for delivery to the borrower.

Cost of Attendance – This is the total cost of one year's study at LIPA; it is set annually by LIPA’s International Team.