Why will freshmen be allowed to borrow only $3,500 when seniors are allowed to borrow over $5,000?
The rationale is that the federal government wants to limit the amount of debt a student is able to accrue. Once students are seniors, it is more likely that they will graduate and find jobs in their field, which will allow them to pay the loan back. Freshmen may decide that school is not for them and withdraw. If that happens and they have been allowed to borrow a large sum of money they may not be able to find a job that will allow them to pay it back.
