More Loan $ AvailableCongress approves additional $2000 Unsub.Stafford loan
On May 7th, President Bush signed into law bill H.R. 5715 - Ensuring Continued Access to Student Loans Act of 2008 – which is designed to provide continued availability of access to the Federal student loan program for students and families.
The bill increases annual and aggregate loan limits for undergraduate dependent and independent students; includes an in-school deferment provision for parent PLUS loans, including extenuating circumstances; clarifies the Lender of Last Resort program (LLR); and grants temporary authority to the U.S. Department of Education (ED) to purchase student loans, improving program liquidity.
Some of the primary provisions of the new law are as follows:
Increase the Annual Unsubsidized Dependent Undergraduate Stafford Loan Limit by $2,000 and increase the aggregate limit to $31,000. sample loan scenario (PDF document)
Increase the Annual Unsubsidized Independent Undergraduate Stafford Loan Limit by $2,000 for the first two years of undergraduate study and increase the aggregate limit to $57,500.
Allow Parent PLUS Loan borrowers to defer repayment until six months after the student ceases to be enrolled at least half-time.
Temporarily allow up to 180 days delinquency on a home mortgage or medical payments if the PLUS borrower is not more than 89 days delinquent on the repayment of any other debt.
Clarify that existing law gives ED the authority to advance federal funds to guaranty agencies in the event they don’t have sufficient capital to originate new loans and carry out LLR requirements.Delay Parent PLUS auctions until July 1, 2010.