Student Loans

Discussion in 'General Distance Learning Discussions' started by PuppyMama, Nov 18, 2015.

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  1. PuppyMama

    PuppyMama New Member

    Hello, I am asking this question for a close friend of mine.

    Does anyone know anything about Grad Plus Loans? My friend has maxed out his $138,500 aggregate federal loan allowance. He was found credit worthy for a grad plus loan.

    The DOE states that a person is still eligible for a grad plus loan even if they have maxed out their aggregate. However, if they have exceeded it, they need to repay the excess or make satisfactory arrangements to do so. (My first question is, how is it even possible to max out the aggregate? I thought there were strict caps on these loans!)

    My friend did not take out more than $138,500, but his balance is higher due to interest. Do you believe that the interest will make him ineligible for the grad plus loan?

    He told me that his school has already asked him to fill out a document asking if he is receiving any other aid (which is typical when a grad plus loan is being processed).

    Any feedback, especially from someone with first/hand experience or from a financial aid guru would be great. Thanks in advance!
     
  2. jumbodog

    jumbodog New Member

    This thread is kind of old (ten days)...but if your friend has 138K in loans unless he is a doctor there is some type of significant issue here. I saw this once when I did FA many years ago. The student had capped....and had never completed a degree... They have since stopped that with academic progress changes but the point remains. There is no good reason to have 138K in loans.

    Understand that since these loans can't be discharged in bankruptcy lenders would find a dead donkey credit worthy.

    I don't know. It is a good question but any competent FA should be able to answer it.
     

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