President Bush signed into law the "Ensuring Continued Access to Student Loans Act of 2008 (H.R. 5715)" on May 7, 2008, which among other things increased the academic year maximum for the undergraduate Federal Stafford Loan program.

Federal Stafford Loan

Previously, undergraduate students could borrow a Federal Stafford Loan up to the maximum amounts listed below:

With the passage of H.R. 5715, these amounts will increase by $2,000 in Unsubsidized Federal Stafford Loan effective with the 2008-2009 academic year.

This increase is in the form of an Unsubsidized Stafford Loan, which means the borrower is always responsible for the interest that accrues on the loan. The maximum subsidized amounts are still $3,500 for freshmen, $4,500 for sophomores, and $5,500 for juniors and seniors for those who meet the need requirement based on their FAFSA results.

PLUS Denied/Additional Unsubsidized Federal Stafford Loan

A dependent undergraduate student can still receive the Additional Unsubsidized Federal Stafford Loan ($4,000 for freshmen and sophomores or $5,000 for juniors and seniors) if a parent is denied the 2008-2009 PLUS (Federal Parent Loan for Undergraduate Students), plus the $2,000 Unsubsidized Stafford increase. The total unsubsidized eligibility for a student whose parent is denied the PLUS is now $6,000 (freshmen and sophomores) or $7,000 (juniors and seniors).

Aggregate Loan Limit

The aggregate loan limit for undergraduate dependent students was also increased from $23,000 to $31,000 (no more than $23,000 of which can be subsidized). The aggregate loan limit for undergraduate independent students was increased from $46,000 to $57,500 (no more than $23,000 of which can be subsidized).

You can learn more about Stafford Loans and view a chart of the recent increase HERE.

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