Trends and Issues

Question of the week

Q.: If a student will graduate in December 2008, may he receive more than half of his annual Stafford loan limit in the fall term?

A.: Yes. As long as the student's cost of attendance supports it, there is no prohibition in the law or regulations against awarding a full annual loan limit in one term.

However, this student may be subject to proration. Keep in mind that Stafford annual loan limits must be prorated when an undergraduate student is enrolled in a remaining period of study that is shorter than a full academic year (see page 3-92 of the 2007-08 Federal Student Aid Handbook).

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