Law School Discussion

18.5 subsidized cap?

18.5 subsidized cap?
« on: February 23, 2006, 05:37:18 PM »

is 18,500 the maximum for subsidized stafford and nonsubsidized stafford can add beyond this amount, or does the 18,500 max include both subsidized and nonsubsidized stafford loans?

Erapitt

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Re: 18.5 subsidized cap?
« Reply #1 on: February 23, 2006, 05:40:50 PM »
That is the max total for Stafford loans.  Up to $8,500 per year for Subsidized and up to $10,000 per year for unsubsidized for an aggregate maximum of $138,000 total in your life.

Re: 18.5 subsidized cap?
« Reply #2 on: February 23, 2006, 05:45:33 PM »
thanks for the info!

Typhoon Longwang

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Re: 18.5 subsidized cap?
« Reply #3 on: February 24, 2006, 12:55:14 AM »
I might be wrong, but I believe that if you don't qualify for the full $8,500 in subsidized Stafford then it can be compensated for with additional unsubsidized Stafford (with the combined total not to exceed $18,500.

Erapitt

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Re: 18.5 subsidized cap?
« Reply #4 on: February 24, 2006, 08:17:43 AM »
I might be wrong, but I believe that if you don't qualify for the full $8,500 in subsidized Stafford then it can be compensated for with additional unsubsidized Stafford (with the combined total not to exceed $18,500.


This is correct.  Keep in mind, unsubsidized stafford loans are nothing great.  They accumulate interest just like a bank loan.  They just have a cap on how high the rate can go up and its still like 8.2%.  Right now the current rate is around 4-4.5%, nothing amazing.

upNdown

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Re: 18.5 subsidized cap?
« Reply #5 on: February 25, 2006, 11:06:17 AM »
I might be wrong, but I believe that if you don't qualify for the full $8,500 in subsidized Stafford then it can be compensated for with additional unsubsidized Stafford (with the combined total not to exceed $18,500.


This is correct.  Keep in mind, unsubsidized stafford loans are nothing great.  They accumulate interest just like a bank loan.  They just have a cap on how high the rate can go up and its still like 8.2%.  Right now the current rate is around 4-4.5%, nothing amazing.

True, but still better than you get anywhere else.  Try getting even close to that rate from a bank.  Even a secured loan with perfect credit is going to be 2-3 points higher than that.  And most people here have neither the security nor the credit. 

whoisjohngalt

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Re: 18.5 subsidized cap?
« Reply #6 on: March 01, 2006, 11:41:11 PM »
Actually, Congress just changed this.

Unsubsidized is now $12,000 for Grad students.  You can do more research, but here's a brief summary:

http://www.amsa.com/fap/news/news_detail.cfm?aid=743

Typhoon Longwang

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Re: 18.5 subsidized cap?
« Reply #7 on: March 02, 2006, 12:14:40 AM »
There was some debate about whether the legislation was legitimate (issues with the language being different between the House and Senate versions) and so a new bill may need to be written and passed for presidential approval.  Anyone know what's happening with that challenge?

Erapitt

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Re: 18.5 subsidized cap?
« Reply #8 on: March 02, 2006, 04:41:24 AM »
Actually, Congress just changed this.

Unsubsidized is now $12,000 for Grad students.  You can do more research, but here's a brief summary:

http://www.amsa.com/fap/news/news_detail.cfm?aid=743

It is not currently in affect.  The best we can hope for is next year (06-07) I would imagine.  That is IF the bill gets completely through in time.

sarmstrong806

Re: 18.5 subsidized cap?
« Reply #9 on: March 02, 2006, 10:31:56 AM »
The un-subsidized are 91 day t-bill rate +1.7%, so actually they are running at 6.2% ish right now. They add .6% after you get out of school.

It looks to me the only difference in sub and un-subbed are that subbed loans do not acrue interest while you are in school.

Anyone know on this?