Aggregate loan limit is the maximum total amount of Direct Subsidized and Unsubsidized Loans a student may borrow over the course of an academic career.
How it works
NSLDS maintains a lifetime total for each borrower. Before certifying a new loan the institution reviews the remaining eligibility. If the student is near the limit, the loan amount is reduced or denied. Repayment of principal can restore some eligibility. Advancement from undergraduate to graduate status raises the applicable aggregate limit.
Example: a dependent undergraduate has already borrowed $25,000 in combined Direct Loans. The aggregate limit for dependent undergraduates is $31,000. The student can borrow only $6,000 more before reaching the cap, even if annual grade-level limits would otherwise allow a higher amount.
How it differs
Annual loan limits restrict borrowing in a single academic year and vary by grade level. Aggregate limits restrict the lifetime total. Pell Grant lifetime eligibility is a separate 600 percent cap. Private loans are not subject to federal aggregate limits.
Common errors
Assuming the annual limit can be borrowed every year regardless of the aggregate total. Forgetting that capitalized interest can reduce remaining eligibility. Expecting graduate-level limits to apply while the student is still classified as an undergraduate.
References
- 1. Federal Student Aid aggregate limitsUndergraduate and graduate caps
- 2. 34 CFR 685.203 loan limitsRegulatory amounts
Aggregate loan limit is the maximum total amount of Direct Subsidized and Unsubsidized Loans a student may borrow over the course of an academic career.