The Student Freedom Agreement should be considered just one part of a student’s overall financial aid package. It is not designed to replace any state or institutional aid, or any federal grants, work-study, or Direct Subsidized and Unsubsidized loans. Instead, a Student Freedom Agreement is available to cover a student’s remaining educational expenses after those other aid sources are taken into account and is offered as an alternative to private student loans and Parent PLUS loans.
The cap on funding for each student is currently $20,000 per academic year and $40,000 total. And as with Parent PLUS loans and most private student loans, the total amount of funding received, including under the Student Freedom Agreement, cannot exceed the total “cost of attendance,” as defined by each school’s financial aid office.