Loan Cap

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Loan Cap

The policy of a higher education institution forbidding students from taking out student loans in excess of a certain amount. A school may enforce a loan cap by covering a portion of the debt with grants, by giving scholarships, or by other means.
References in periodicals archive ?
Because a lot of credit unions have hit their residential and consumer loan caps, the CUSO is hoping to encourage them to consider participation lending.
The company is partnering with a new batch of direct lenders that are willing to offer more packages including increasing the loan caps for people with low credit score in light of a growing demand for personal loans.
He says with UAE economic growth hovering around four per cent, and an increased appetite to lend due to the introduction of loan caps and more defined lending criteria, local banks responded by aggressively marketing their existing products, and offering new ones.
But it also cautioned that the lowering of loan caps by Fannie Mae and Freddie Mac, starting in 2014, will hurt mid-segment buyers, and may offset the effects of the Fed's decision to keep down mortgage prices.
Asked about the latest information on the mortgage loan caps, the governor said that the circular which was sent to the banks with the proposed ratios was "a mere notification".
Those loans adjust monthly with mortgage loan caps up to seventeen percent on the life of the loans and clients are usually unaware of the consequences of that type of financing.
Besides recommending the increase in the SBA 7 (a) loan program to $5 million, IFA urged the government to expedite the SBA loan application process and make it less cumbersome; eliminate (temporarily) or sharply reduce SBA lender fees to increase the incentive for banks to make loans; allow market-based loan pricing so that SBA loan caps do not discourage banks from making loans; and promote sensible audit standards so that lenders will not fear losing their SBA guarantee after the loan is issued.
With all that said, we are in a crisis, so I would agree to support temporary measures to lift individual loan caps," said Lowman.
A variety of economic conditions--from decreasing family contributions to rising tuition costs--have made students needier than ever, but stagnant loan caps have forced many students and their families to turn to alternative loans to fill the gap.
The proposed loan caps, detailed in an SBA Policy Notice, are a result of faulty government estimates on the percentage of small businesses that are likely to default on 7(a) loans," National Small Business United said in a statement.
Most bond programs have income ceilings, are limited to first-time homebuyers and have much lower loan caps.
Our C-PaL program has been successful in providing relief to credit unions who are edging closer to their commercial loan caps, and we'll continue to partner with those looking to grow their business lending," Salmon said.