I was wondering what the limitations were on the unsubsidized Federal Loans. I have 2 children in college, one will be a junior (receives some athletic money) and one a senior. I have previously paid for their college through a parent loans and co-signed for my daughter last year. I'm Divorced and lost my home (short sale) took a huge loss and know this will effect my credit. I'm unable to pay anymore payments, or I would have kept my home. They live with me in the summer and the FAFSA tells me I can afford to pay for their school, but it doesn't allow me to put in court appointed debt. Each would need about 12k a piece. What our their options? Please advise, I would like to start the process and end the worry.

Yes, there are annual and lifetime limits on Stafford loans. Here is a link to a page that explains these limits in detail: http://www.studentloannetwork.com/federal-student-loans/stafford-loan.php

If you think that your children's FAFSA forms do not accurately reflect your situation you can always appeal their financial aid packages. Just know that when you go to do this you will need thorough documentation of your financial situation.