In a letter to Darrell G. Kirch, president and CEO of the Association of American Medical Colleges (AAMC), Secretary of Education Margaret Spellings said the Department would be increasing the aggregate Stafford loan limit for health professional students from $189,125 to $224,000. Spellings said that a Dear Colleague Letter announcing the change would be forthcoming.

"We are pleased the Department of Education has recognized the need for increased loan limits for health professions students," said Matthew Shick, legislative analyst with the AAMC. "This increase will allow medical students to better manage their significant debt burdens with lower interest federal loans."

Last September the AAMC - along with a few dozen other medical associations - sent a letter to the Department requesting an increase in the Stafford loan limits for health professional students noting "The HEA mandates that the Secretary prescribe in regulation the aggregate combined Stafford loan limits based on the aggregate subsidized Stafford loan limits, adjusted to reflect the annual unsubsidized Stafford loan limits."

Previous to the Secretary's decision, the aggregate combined Stafford loan limit for health professions students had remained stagnant for more than a decade. The AAMC claimed that the current aggregate limits do not reflect increased annual unsubsidized loan limits mandated by HERA.

Using a calculation prescribed by statute would actually put the aggregate Stafford loan amount at $223,793, but Spellings rounded the total to $224,000 "to simplify institutional administration of the new loan limit."

By Justin Draeger
NASFAA Assistant Director for Communications

Posted 03/14/08 to www.NASFAA.org. Redistribution to non-NASFAA institutions is prohibited. Please submit Web Site questions or comments to Web@NASFAA.org.