Trends and Issues

Question of the week

Q.: If a school uses summer as a trailer, may it certify loans for summer 2008 using the new $2,000 unsubsidized Stafford annual loan limits for undergraduates established by the Ensuring Continued Access to Student Loans Act of 2008 (ECASLA)?

A.: A school that uses summer as a trailer may certify the increased unsubsidized Stafford loan amounts for eligible borrowers in the summer term as long as it doesn't schedule the first disbursement until on or after July 1, 2008. Whether a school includes the new limit with an existing Stafford loan or certifies a supplemental loan, ECASLA's new limits apply to periods that include July 1 (e.g., a summer loan that covers a loan period from June to August), as long as the loan is first disbursed on or after July 1. The new limits also, of course, apply to periods that begin after July 1, 2008.

TG Online offers a handy chart with the new Stafford annual and aggregate loan limits that became effective July 1, 2008.

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