Loan-Processing System Ready for Stafford-Loan-Limit Increase

Effective Feb. 15, 2007, the mainframe of USA Funds^®’ guarantor-servicer will accommodate requests for Stafford loans at the new subsidized and unsubsidized annual loan limits.

Annual loan limits will increase effective July 1, 2007, for some categories of Federal Stafford loans as part the implementation of the Higher Education Reconciliation Act of 2005. The new loan limits are available for loans with a first disbursement date on or after July 1, 2007, and for loans periods that include July 1, 2007, or begin after that date. The mainframe will allow the new Stafford-loan limits as follows:

Grade Level	Subsidized*	Unsubsidized**	Annual Loan Limit
Freshman	$3,500	$4,000	$7,500
Sophomore	$4,500	$4,000	$8,500
Junior	$5,500	$5,000	$10,500
Senior	$5,500	$5,000	$10,500
Graduate Level (Grade Levels A-D)	$8,500	$12,000	$20,500

* For dependent or independent students. Can be subsidized or unsubsidized loans or a combination of both.

** For independent students or for dependent students denied for a PLUS loan.

For more details about certifying loans at the increased annual loan limits, read the latest USA Funds policy frequently asked question.