Amarillo College does not maintain a preferred lender list for Stafford or private education loans. Students are free to choose any lender who participates in the Stafford loan program as long as that lender is willing to make loans for students attending Amarillo College. A list is available in the Financial Aid Office of lenders who have previously funded Stafford loans for AC students and who have expressed that they will continue to fund loans for AC students. Most credit unions do require the student to be a member for Stafford loan processing.

The Department of Education establishes an annual maximum loan limit for Stafford loans.
Currently the following maximum limits are:

Dependent Students: First Year - $5500 (no more than $3500 may be subsidized)
                                      Second year - $6500 (no more than $4500 may be subsidized) 

Independent Students: First year - $9500 (no more than $3500 may be subsidized)
                                          Second year - $10,500 (no more than $4500 may be subsidized)

Students at AC may not be eligible to receive the maximum annual loan limit during the academic year. Students’ loan awards may not exceed the student’s cost of attendance minus any financial aid awarded minus other resources (for example, assistance received from the WIA program, DARS, or other outside resource such as scholarships).

The Department of Education also establishes an overall aggregate limit for Stafford loans.
Currently the following maximum aggregate limits are:

Dependent: $31,000
Independent: $57,500

Independent students who have borrowed an aggregate of $50,000 or more will have their Financial Aid file evaluated on a case-by-case basis prior to any additional Stafford loan awarding. The AC Financial Aid office does reserve the right to use professional judgment on a case-by-case basis when denying the awarding of additional Stafford loan funds to borrowers with excessive Stafford loan aggregate balances.

Currently, most lenders will charge an origination fee. Students will be notified of this fee on the notice of disclosure form sent by the lender. Students are encouraged to evaluate lender terms and fees prior to selecting a lender for processing of their Stafford loan. Most lenders maintain a website with this information. At this time, Texas Guarantee Student Loan Corporation is paying the 1% guarantee fee on behalf of the student.

PLUS loans (parents borrowing to pay for their dependent child’s education expenses) do not have a pre-established maximum amount. However, at no time will the PLUS loan exceed the student’s cost of attendance less any financial aid received. PLUS loans are credit based. AC requires the student to have a completed FAFSA on file, and the parent to complete the pre-approval process prior to processing a PLUS loan. Parents are encouraged to research lender fees and terms prior to completing the pre-approval process.

Private Education loans are credit based loans used to cover education expenses. AC requires students to have a completed FAFSA application on file prior to processing a private education loan. Students are encouraged to research lender fees and terms prior to requesting a private loan from a participating lender. Private Education loans do not have a predetermined maximum amount; however, some lenders do establish a minimum loan amount. Private Education loans that are certified by the AC Financial Aid Office will not exceed the student’s cost of attendance less any other financial aid received.