Error: The speaker included SLS loans in a list of financial aid
from the federal government.
The Supplemental Loan for Students (SLS) loan program ended in 1994,
when it was replaced by the unsubsidized Stafford loan.
Error: To get a Pell Grant, you must have an adjusted gross income
Almost a third (29.6%) of Pell Grant recipients in 2007-08, the most
recent year for which data is available, had an adjusted gross income
of $25,000 or more.
The data analysis system for the 2007-08 National Postsecondary
Student Aid Study (NPSAS) also demonstrates that 95.9% of Pell Grant
recipients in 2007-08 had an adjusted gross income less than $50,000.
Error: As long as you file the FAFSA you are guaranteed to get the
subsidized Stafford loan.
The speaker confused the subsidized Stafford loan with the
unsubsidized Stafford loan. Eligibility for the subsidized Stafford
loan is based on financial need and is not guaranteed. The
unsubsidized Stafford loan, on the other hand, does not depend on
financial need and is available even to students from wealthy
Error: The subsidized Stafford loan limit is $5,500/year in junior
and senior year all the way into grad school.
The speaker gave the correct annual loan limit for college juniors and
seniors, but not for graduate students.
The subsidized Stafford loan limit is $8,500/year for graduate and
professional students. However, the Budget Control Act of 2011
eliminated the interest subsidy on subsidized Stafford loans for
graduate and professional students starting July 1, 2012. The graduate
and professional students will be able to borrow the same amounts as
before, but the subsidized Stafford loans will effectively be
unsubsidized Stafford loans.
Error: You must demonstrate to the college that you deserve the
unsubsidized Stafford loan.
Perhaps the speaker again confused subsidized and unsubsidized
While colleges technically have the authority to reduce loan limits on
a case-by-case basis, sub-regulatory guidance issued by the US
Department of Education limits this authority. Colleges may not limit
unsubsidized Stafford loans just to the college's own charges or
reduce unsubsidized Stafford loan borrowing by independent students.
There is also no requirement to prove that one "deserves" the Stafford
loan other than by filing the Free Application for Federal Student Aid