Well, you have finally made the big decision. You want to go to college and further your education. How are you going to pay for it? There are so many college loan options out there; we are going to talk about some of them. Let us start with a Direct or FFEL Stafford Loan. First, you can have a subsidized or unsubsidized loan.

A subsidized loan is awarded based on financial need. If you are eligible for a subsidized loan, the government will pay (subsidize) the interest on your loan while you are in school, for the first six months after you leave school, and if you qualify to have your payments deferred. Depending on your financial need, you may borrow subsidized money for an amount up to the annual loan-borrowing limit for your level of study.

You might be able to obtain a college loan beyond your subsidized loan amount even if you have not demonstrated financial need. In that case, you would receive an unsubsidized loan. Your school will subtract the total amount of your other financial aid from your cost of attendance to determine whether you are eligible for an unsubsidized loan. Unlike a subsidized loan, you are responsible for the interest from the time the unsubsidized loan is disbursed until it is paid in full. You can choose to pay the interest or allow it to accrue and be capitalized (that is, added to the principal amount of your loan). Capitalizing the interest will increase the amount you have to repay.

You can receive a subsidized loan and an unsubsidized loan for the same enrollment period as long as you do not exceed the annual loan limits.

If you are a dependent undergraduate student, each year you can borrow up to

• $3,500 (for the 2007-08 academic year) if you are a first-year student enrolled in a program of study that is at least a full academic year.
• $4,500 (for the 2007-08 academic year) if you have completed your first year of study and the remainder of your program is at least a full academic year.
• $5,500 if you have completed two years of study and the remainder of your program is at least a full academic year.

If you are an independent undergraduate student or a dependent student whose parents have applied for but were unable to get a PLUS Loan (a parent loan), each year you can borrow up to

• $7,500 (for the 2007-08 academic year) if you are a first-year student enrolled in a program of study that is at least a full academic year. No more than $3,500 of this amount may be in subsidized loans.
• $8,500 (for the 2007-08 academic year) if you have completed your first year of study and the remainder of your program is at least a full academic year. No more than $4,500 of this amount may be in subsidized loans.
• $10,500 (for the 2007-08 academic year) if you have completed two years of study and the remainder of your program is at least a full academic year. No more than $5,500 of this amount may be in subsidized loans.
• If you are a graduate or professional degree student, each year you can borrow up to
• $20,500 for the 2007-08 academic year. No more than $8,500 of this amount may be in subsidized loans.

When you graduate with a graduate or professional degree, the maximum total debt allowed from Stafford Loans is $138,500. No more than $65,500 of this amount may be in subsidized loans. This maximum total graduate debt limit includes Stafford Loans received for undergraduate study.

These amounts are the maximum yearly amounts you can borrow in both subsidized and unsubsidized FFELs or Direct Loans, individually or in combination. Because you cannot obtain a college loan for more than your cost of attendance minus the amount of any Federal Pell Grant you are eligible for and minus any other financial aid you will get, you may receive less than the annual maximum amounts. Grads, check out graduate student loans at www.student-loans.net for more lender info.