Facts of the Month

The Higher Education Reconciliation Act (HERA)

The Higher Education Reconciliation Act (HERA) of 2006 brought several changes to the world of student financing. One of the changes current and soon-to-be college students are likely seeing as they review financial aid packages for 2007-08 is the increased Stafford student loan borrowing limits effective July 1, 2007. First year undergraduate students will be able to borrow up to $3,500 (up from $2,625) under the Stafford program; second year students will be able to borrow $4,500 (up from $3,500); third and fourth year students will continue to be able to borrow up to $5,500 in the upcoming academic year.

Publication Date: April 2007

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