Question:
I'm a 31 year old returning student, leaving the IT field and studying to become a teacher. After having several companies fold out from under me, education and a more stable, less turbulent career seemed a good option. After completing FAFSA and special circumstances documentation, I was awarded a Pell grant of $1125 for the first half of 2003.

In addition, after turning in a loan application with a detailed budget of my expenses, I have been told that I will get a student loan of only $1313, which is not even close to what I will require to afford education and living expenses. The financial aid office told me that the most a first year student could be given in studen loans (by law) was $2625 per year. Finaid.org indicates that this is a limit for dependent students, which clearly I am not. According to it, independent students like me should have up to an additional $4000 per year (unsubsidized) available for the first two years. Can anyone think why the financial aid office would not be giving me information on where to find these additional loans? Is there a good place for me to look on my own for information on these unsubsidized loans and/or Private/Alternative educational loans?

Answer:
Do you already have a degree? In our area, an education degree is post bac. only and in some cases graduate school. This would enable you to obtain a larger loan, as you would not be a first year student. I suggest finding a school that will work with you with the classes you have already taken to map out your plan. Caution though if you are going into education because it is "stable", not in this neck of the woods, budget cuts, fluctuations in enrollement, in funding make education anything but stable.

But try www.finaid.org for more info All Stafford Loans are either subsidized (the government pays the interest while you're in school) or unsubsidized (you pay all the interest, although you can have the payments deferred until after graduation). To receive a subsidized Stafford Loan, you must be able to demonstrate financial need. With the unsubsidized Stafford loan, you can defer the payments until after graduation by capitalizing the interest. This adds the interest payments to the loan balance, increasing the size and cost of the loan. All students, regardless of need, are eligible for the unsubsidized Stafford Loan. Stafford Loans allow dependent undergraduates to borrow up to $2,625 their freshman year, $3,500 their sophomore year and $5,500 for each remaining year (independent students can borrow an additional unsubsidized $4,000 the first two years and $5,000 the remaining years).

Graduate students can borrow $18,500 per year, although only $8,500 of that is subsidized.

Can anyone think why the financial aid office would not be giving me information on where to find these additional loans? Is there a good place for me to look on my own for information on these unsubsidized loans and/or Private/Alternative educational loans?

Assuming that you are going full-time, the one semester Pell Grant of 1125 means that they made your annual EFC to be about $1700-1800, and that you are going for your first bachelor's degree. And the $1313 Stafford makes you a freshman. As an independent student (by your age) you are eligible for another $4,000 in unsub Stafford ($2,000 per semester) if the difference between the cost of attendance budget and your EFC allows for it. Your Pell, current Stafford, and EFC comes to about $6,500 for a year of two semesters.

If the cost of attendance exceeds that, then you are eligible for additional Stafford but not beyond the full cost of attendance. For example, if you are attending a community college you have probably hit the limit. The Stafford's, sub or unsub, have to be certified by the college and a college can decline to certify added unsub Stafford even if the numbers allow for it - but they have to give you a reason. Whether you can get any additional loans, such as the alternatives, depends on the cost of attendance which includes a (low) living allowance. None are really intended to give you extra money. Alternative loans are available from many sources, you might start at Salliemae.com. But depending on the type of loan, it still may require your school certifying it. Try www.collegeloans.com or call 1800-2college They have student loans as low as 3.5% with no fee. You can consolidate your current student loans as well if you have any. My friend told me that they don't even check your credit. You can save monthly payments. It is fast and easy. All over the phone, and ask for alternative options as well.