Federal Student Loan Aggregate Amount Limits Explained

The federal government sets aggregate amount limits to prevent students from taking on too much debt.

The aggregate loan amount limit is $31,000 for undergraduate students.

This limit applies to Direct Subsidized and Unsubsidized Loans, as well as Federal Family Education Loans (FFEL) and Direct PLUS Loans.

For graduate or professional students, the aggregate loan amount limit is $57,500, but this can be increased by up to $31,000 if the student is also taking out Direct PLUS Loans for their parents.

The aggregate loan amount is a crucial concept to understand when it comes to federal student loans. It's the total amount of money you can borrow over your entire education, and it varies depending on your dependency status and the type of degree you're pursuing.

For dependent students, the aggregate loan limit is $31,000, with no more than $23,000 of that amount being in subsidized loans. This limit applies to undergraduate students.

Independent students, on the other hand, have a much higher aggregate loan limit of $57,500, with no more than $23,000 of that amount being in subsidized loans. This limit also applies to undergraduate students.

Graduate and professional students have a separate aggregate loan limit, which is $138,500, with no more than $65,500 of that amount being in subsidized loans.

Certain health professions students have a higher aggregate loan limit of $224,000, with no more than $65,500 of that amount being in subsidized loans. However, this increased limit only applies to students enrolled in qualifying health professions programs.

The maximum allowable loan amount is also determined by your class level and dependency status. It's the combined total of subsidized and unsubsidized loans you can borrow, which can't exceed your Cost of Attendance (COA) minus other financial aid or the maximum annual amount allowable by law—whichever is less.

Federal loans have their own set of rules and limits. The maximum loan amount you can borrow in Direct Subsidized and Direct Unsubsidized Loan programs from the U.S. Department of Education is dependent on your eligibility, including dependency status and the type of degree.

The annual and aggregate loan limits for certain federal loan types apply for your entire education, even if you switch schools or take several years off before returning to finish your degree.

Dependent students have a lower aggregate loan limit than independent students. For dependent students, the undergraduate aggregate loan limit is $31,000, with no more than $23,000 in subsidized loans.

Independent students have a higher aggregate loan limit. For independent students, the undergraduate aggregate loan limit is $57,500, with no more than $23,000 in subsidized loans.

Graduate and professional students have a higher aggregate loan limit as well. For graduate and professional students, the aggregate loan limit is $138,500, with no more than $65,500 in subsidized loans.

Here's a breakdown of the aggregate loan limits for dependent and independent undergraduate students:

Graduate and professional students are not eligible for Direct Subsidized loans, and they are considered independent students even if they are still supported by their parents.

Borrowing a large aggregate loan amount can be a complex process, with many factors to consider.

The total interest paid on a $100,000 loan over 10 years can be as high as $63,000, making it essential to carefully evaluate your borrowing options.

A good credit score can help you qualify for lower interest rates, saving you thousands of dollars in interest payments over the life of the loan.

For example, a credit score of 750 can qualify you for an interest rate of 4%, while a credit score of 550 may get you a rate of 8%.

The more you borrow, the more you'll pay in interest, so it's crucial to borrow only what you need.

Repaying a large loan can take years, so it's essential to create a realistic repayment plan that fits your budget.

A monthly payment of $1,000 for 10 years can be manageable for some, but for others, it may be a struggle.

To be eligible for an aggregate loan amount, you must be enrolled at least half-time in a degree-granting program.

You must also be in good academic standing, meaning you're not on academic probation or suspension. This ensures you're making progress towards your degree.

To determine your aggregate loan amount, your lender will consider your current loan status, which includes your outstanding loan balance and any pending loan disbursements.

For certain dependent students, the eligibility rules have changed. These students can borrow more money if their parents are eligible for a Direct PLUS Loan.

Dependent undergraduates who meet this requirement can borrow up to $5,500 in the first year, with $3,500 of that being subsidized loans.

The loan limits increase to $6,500 in the second year, with $4,500 of that being subsidized loans.

In the third year and beyond, the loan limits increase to $7,500, with $5,500 of that being subsidized loans.

Here's a breakdown of the loan limits for these students:

These increased loan limits are great news for students who meet the requirements.

Changing your student status can significantly impact your eligibility for financial aid.

If you're a dependent student, a change in your parent's income or employment can affect your Expected Family Contribution (EFC).

As a result, your financial aid package might be adjusted accordingly.

If you're an independent student, a change in your income or employment can also impact your EFC.

However, this change will only affect your financial aid package if your income exceeds the maximum allowed for your dependency status.

A change in your student status can also impact your eligibility for scholarships and grants.

For example, if you're a freshman and your status changes from full-time to part-time, you may no longer be eligible for a scholarship that requires full-time enrollment.

Additionally, a change in your student status can impact your ability to receive a student loan.

If you're no longer considered a full-time student, you may not be eligible for a student loan that requires full-time enrollment.

For dependent undergraduates taking preparatory coursework or teacher certification programs, there's just a single annual loan limit representing the maximum amount of subsidized and/or unsubsidized loans they may receive for an academic year.

This limit is $5,500 per academic year, which can be all subsidized, all unsubsidized, or a combination of both.

Dependent undergraduates can receive up to $5,500 per academic year in Direct Loan funds for preparatory coursework required for enrollment in a graduate or professional program.

Independent undergraduates, on the other hand, can receive up to $12,500 per academic year, but not more than $5,500 of which can be subsidized.

Loan limits for preparatory coursework and teacher certification coursework are not subject to proration if the coursework is less than a full academic year.

If a student transfers from a graduate program to an undergraduate program in the middle of an academic year, the undergraduate annual loan limit for the student's grade level applies.

The amounts previously borrowed at the graduate level within the same academic year do not count against the undergraduate annual loan limit.

The total amount awarded for the academic year may not exceed the higher (graduate or professional) annual loan limit.

Before originating a Direct Subsidized Loan or Direct Unsubsidized Loan, you need to check if the student still has remaining eligibility under the aggregate loan limits. This can be done by relying on the financial aid history.

The financial aid history can be found on the ISIR and in NSLDS, and it will tell you if a student is about to exceed the aggregate loan limits. You can also use the Transfer Student Monitoring process for this purpose.

To check remaining loan eligibility, you need to look at the Aggregate Loan Information for the borrower's outstanding subsidized and unsubsidized loans in NSLDS. This will show you the Aggregate Loan Information for each individual loan.

The outstanding principal balance (OPB) shown in NSLDS includes capitalized interest and other charges, but these amounts are not counted against the aggregate loan limits. However, the aggregate outstanding principal balance (Agg. OPB) is the amount that counts against the aggregate loan limits.

For example, if a student has a Direct Unsubsidized Loan disbursed in the amount of $5,000, and $200 in interest accrues and is capitalized, the OPB will be $5,200, but the Agg. OPB will be $5,000. This is the amount that should be used to determine remaining loan eligibility under the aggregate loan limits.

Consolidation loans are also included in the aggregate loan limits, including Direct Consolidation Loans and Federal Consolidation Loans made under the FFEL program. These loans are attributed to Direct Subsidized Loans, Direct Unsubsidized Loans, Subsidized Federal Stafford Loans, and Unsubsidized Federal Stafford Loans that were repaid by the consolidation loan.

Independent undergraduates have access to both subsidized and unsubsidized loan options. The total annual limit for these loans is $9,500 for the first year, $10,500 for the second year, and $12,500 for third year and beyond.

Subsidized loans, which have a lower annual limit, are also available. For the first year, the maximum subsidized loan amount is $3,500. This amount increases to $4,500 for the second year and $5,500 for third year and beyond.

Here's a breakdown of the annual limits for independent undergraduates:

The PLUS loan program offers a flexible borrowing option for graduate and professional students, as well as parents of dependent undergraduate students.

There are no fixed annual loan limits for Direct PLUS Loans, so students and parents can borrow up to the student's cost of attendance minus other financial aid received.

A graduate or professional student may be eligible for a Direct PLUS Loan in addition to the maximum Direct Unsubsidized Loan amount for an academic year.

The total Direct PLUS Loan amount borrowed by a parent on behalf of a dependent student may not exceed the student's estimated cost of attendance minus other financial aid the student receives for the period of enrollment.

This means that students and parents can borrow the amount needed to cover the remaining costs of attendance, as long as it doesn't exceed the student's estimated cost of attendance minus other aid received.

If you're enrolled in a program that's longer than one academic year, but shorter than two, you're in a bit of a special situation. The ECAR, or Eligibility and Certification Approval Report, lists your program as a "one-year" program, even if it's actually a bit longer.

For instance, if you're in a 1,500 clock-hour program, you'll be eligible for second-year loan limits after completing the first 900 clock hours and 26 weeks of instructional time. However, because the remaining portion of the program is less than a full academic year in length, your loan limit will have to be prorated.

To give you a better idea, here's a breakdown of the loan limits for dependent undergraduates:

And here's a breakdown for independent undergraduates, including those whose parents can't get Direct PLUS Loans:

If you're considering a career in a health profession, it's essential to know about the loan programs available to you. The federal government offers additional funding for students in specific programs.

The additional funding can be substantial, with an extra $20,000 or $26,667 available for an academic year. The amount depends on the length of the academic year, with 9 months receiving the smaller amount and 12 months receiving the larger one.

Here are the health professions programs eligible for these additional funds:

If you're a graduate or professional student in a health profession program, you might be eligible for additional unsubsidized loans to help cover your expenses.

The maximum additional unsubsidized loan amount is $12,500 for a 9-month academic year or $16,667 for a 12-month academic year.

Eligible health professions programs include Doctor of Pharmacy, Graduate program in Public Health, and Doctor of Chiropractic, among others.

Here are some eligible health professions programs:

For example, if you're enrolled in a 9-month Doctor of Dentistry program, you're eligible for the regular Direct Unsubsidized annual loan maximum for a graduate/professional student ($20,500 unsubsidized), plus the maximum increased unsubsidized amount of $20,000, for a total Direct Unsubsidized Loan maximum of $40,500 per academic year.

The maximum combined outstanding subsidized and unsubsidized loan debt for a dependent undergraduate is $31,000.

Dependent undergraduates can have up to $23,000 of this amount in subsidized loans. This means that the remaining $8,000 can be in unsubsidized loans.

Here's a breakdown of the aggregate loan limits for different types of students:

So you've borrowed some money to help pay for school, but now you're wondering how you can pay it back. The good news is that you can pay off some of your loans and reduce your outstanding debt, which means you can borrow more money if you need it.

If you've reached your aggregate loan limit, you might think you're stuck, but that's not necessarily true. You can pay back some of your loans and come below the limit, allowing you to borrow more.

The key thing to remember is that aggregate loan limits are not lifetime limits. They're more like a cap on how much you can borrow throughout your entire education.

Here are the aggregate loan limits for federal loans: Degree ProgramSubsidized Stafford Loan LimitOverall Stafford Loan LimitDependent Students$23,000$31,000$57,500Graduate Students$65,500N/A$138,500

Keep in mind that these limits apply to the entire duration of your degree program, not just one year. And, as with annual loan limits, some programs have higher limits, so be sure to check with your school's financial aid office for more details.

Private student loan lenders also have aggregate limits, which can be up to $120,000 to $150,000 for undergraduate students and up to $350,000 to $500,000 for graduate and health professions students.

I've learned that the aggregate loan limits for Direct Loans are determined by the student's degree program and whether they're dependent or independent.

For dependent undergraduate students, the aggregate limit is $31,000, with up to $23,000 of that being subsidized.

Independent undergraduate students and dependent students whose parents are unable to obtain a Direct PLUS Loan have a much higher aggregate limit of $57,500, with up to $23,000 of that being subsidized.

Graduate students, on the other hand, have an aggregate limit of $138,500, but this limit doesn't include subsidized loans.

It's worth noting that these aggregate limits apply to the entire duration of the degree program, not just the current year of study.

If a student pays back some of their loans, they can reduce their outstanding loan debt and come below the aggregate limit, allowing them to borrow more.

As a student, it's essential to understand the loan tables and metrics that apply to you. The annual loan limits for dependent undergraduates can be found in Table 1A, which shows the total and subsidized loan limits for each year of study.

A dependent first-year undergraduate may receive up to $5,500 in Direct Subsidized Loans and/or Direct Unsubsidized Loans for a single academic year, but no more than $3,500 of this amount may be subsidized.

The total annual loan limits for dependent undergraduates are $31,000, with a maximum of $23,000 that can be subsidized.

Here's a breakdown of the annual loan limits for dependent undergraduates:

Independent undergraduates have different annual loan limits, which can be found in Table 1B. The total annual loan limits for independent undergraduates are $57,500, with a maximum of $23,000 that can be subsidized.

Loan consolidation can be a great way to simplify your finances and reduce stress. It involves combining multiple loans into one loan with a single interest rate and payment.

By consolidating your loans, you can potentially lower your monthly payments and reduce the overall amount of interest you pay over time. For example, if you have a credit card with a balance of $2,500 and an interest rate of 20%, consolidating it into a personal loan with a lower interest rate could save you hundreds of dollars in interest.

Consolidating your loans can also give you a fresh start and a clean slate, allowing you to focus on paying off the principal amount rather than the interest.

If you've reached your aggregate loan limit, you can't borrow more money from the specified loan program. However, this limit is not a lifetime limit, and paying back some of your loans will reduce your outstanding debt, allowing you to borrow more.

You can borrow up to $31,000 in undergraduate Direct Loans as a dependent student. This limit is the same for dependent students whose parents are unable to obtain a Federal Direct Parent PLUS Loan.

Independent undergraduate students and dependent students whose parents are unable to obtain a Federal Direct Parent PLUS Loan can borrow up to $57,500 in undergraduate Direct Loans. This is nearly twice the amount available to dependent students.

Up to $23,000 of undergraduate Direct Loans may be subsidized, which applies to both dependent and independent students. The unsubsidized loan limit is equal to the overall limit, less the value of subsidized loans received.

Graduate aggregate loan limits are higher, amounting to $138,500. This limit does not include subsidized loans and applies to graduate students, who are considered independent students.

Here are the aggregate loan limits for Federal Direct Subsidized and Unsubsidized Loans:

Private student loan lenders have their own aggregate limits, which can be up to $120,000 to $150,000 for undergraduate students and up to $350,000 to $500,000 for graduate and health professions students.

A consolidated Perkins Loan or PLUS loan becomes part of the unsubsidized portion of a consolidation loan. This means it's not counted toward the borrower's aggregate Direct Loan limits.

Consolidated Perkins Loans and PLUS loans are treated as unsubsidized loans, which have different repayment terms and interest rates.

The unsubsidized portion of a consolidation loan includes all non-need-based loans, such as PLUS loans and private student loans.

Let's take a look at some example scenarios that illustrate how aggregate loan amounts work.

A borrower with a credit card balance of $2,500 and a personal loan of $5,000 would have an aggregate loan amount of $7,500.

In this scenario, the borrower's total debt is $7,500, which is the sum of the credit card balance and the personal loan.

For example, if a borrower has a mortgage with a balance of $150,000, a car loan of $20,000, and a student loan of $30,000, their aggregate loan amount would be $200,000.

If you're transferring from a graduate program to an undergraduate program during the same academic year, there are some important loan limits to keep in mind. The annual loan limit for a third-year independent undergraduate is $12,500, not more than $5,500 of which may be subsidized.

This limit is lower than the graduate student annual loan limit of $20,500, which is not more than $20,500 of which may be subsidized. To calculate the student's maximum loan eligibility for the spring semester, we need to consider the total amount of loans received as a graduate student in the fall.

The student received $10,250 in Direct Unsubsidized Loan funds for the fall semester as a graduate student. Since the student is now an undergraduate, their maximum loan eligibility for the spring semester is $10,250, not more than $5,500 of which may be subsidized.

Here's a summary of the relevant loan limits for this scenario:

Keep in mind that these loan limits are subject to change, and it's always best to check with your school's financial aid office for the most up-to-date information.

If you've received loans for graduate study and then decide to return to an undergraduate program, it's essential to understand how those loans will affect your eligibility for future loans.

The aggregate loan limit for an independent undergraduate is $57,500, with a maximum of $23,000 in subsidized loans. This means that if you've already received $45,000 in loans for your first undergraduate program, you have remaining loan eligibility for a second undergraduate program.

To calculate your remaining loan eligibility, subtract the total amount of loans received for the first undergraduate program from the aggregate loan limit. In this case, that's $57,500 - $45,000 = $12,500. However, you may not receive the full $12,500, as it would exceed the combined undergraduate/graduate aggregate loan limit of $138,500.

Here's a breakdown of the student's loan situation:

Not more than $4,000 of the remaining $7,500 may be subsidized, as that's the maximum amount allowed by the undergraduate subsidized aggregate loan limit.