HESC Colleague NewsletterMarch 15, 2007  

FFEL Program Regulatory Changes Take Effect in July

Piper Lutbak

Although many changes to the FFEL Program went into effect last year, following is a reminder of additional changes that will take effect on July 1, 2007.


Annual Stafford Subsidized Loan Limits Increased
(For loans first disbursed on or after 7/1/07)

  • First year undergraduate student limits increased from $2,625 to $3,500.
  • Second year undergraduate student limits increased from $3,500 to $4,500.

Annual Stafford Additional Unsubsidized Loan Limits Increased
(For loans first disbursed on or after 7/1/07)
  • Graduate or professional student limits increased from $10,000 to $12,000.
  • Pre-Grad/Prof and Teacher Certification preparatory loan limits increased from $5,000 to $7,000.

Origination Fee for FFELP Stafford Loans Reduced
  • The origination fee charged on loans first disbursed on or after July 1, 2007 through June 20, 2008 is reduced from 2.0 percent to 1.5 percent.

For questions regarding this guidance please contact the Office of Counsel and Regulatory Compliance.