Student Loan Lifetime Maximum – Do You Know Yours?

The world is in a state of financial regression. A lot of companies and industries have shut down. People after people are laid off by their employers trying to cut back on costs and budget. It is not a mystery why college students often resort to college student loans. Some get lucky because their parents’ businesses or source of income somehow survive against the global recession and can therefore afford to send them to college. But for those lower halves of society’s pie-chart, knowing and understanding student loans are a big help… most especially, when it is about student loan lifetime maximum.

Often times, a college student who borrows money, would wonder how much is their limit and what happens after they reach this limit. Should they stop going to school and concentrate on working in order to pay off the loan and be able to borrow some more money to go back to school? Maybe not a good idea though, since most of students who have dropped out from college have a hard time of going back to school.

The lifetime limit is the maximum amount a student can get from subsidized and unsubsidized loans. Currently the amounts are as follows (this is only an guestimate, as the totals may have changed by the time you read this):

Lifetime maximum for graduates and undergraduates is $138,500 with no more than $65,500 in subsidized loansGraduate school -total limit for non-medical students is approximately $138,000Medical students can get up to $200,000 in student loans.Independent student are eligible for additional $23,000 in unsubsidized loan.

If a student’s loan reaches its lifetime maximum limit, he or she could stop school and work to make payments for that loan. Once they pay, these installments will be subtracted from the limit given to them which enables the student to borrow again for him or her to continue schooling.

There is a thing called financial aid for students. This is pretty much offered for those students who are full time. They usually have limits to their loans but the government pays for the interest for the period of schooling. It is important to maintain academic status to keep that financial aid. If you are a part-time student, you are required to make regular payments on interests.

A lot of students should be more prudent when borrowing money for education. They have to make sure that they are keeping tabs on how much they are borrowing. Once a student graduates, the interests of his or her loans will begin to accumulate and if he or she doesn’t have any means of paying for them, it will reflect badly on her credit report once she applies for a job.

Good thing there is help available to those who have reached their student loan lifetime maximum. They just have to be aggressive in seeking help and make sure they deal with the problem before it goes out of control.

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