Direct Loan Annual and Aggregate Limits
- Emily Bivona (Deactivated)
- Heather Smith
- Jennifer Flora Black
- Jennifer Dewey
Annual and Aggregate Limits - Federal Direct Subsidized and Direct Unsubsidized Loans
The following table shows some typical annual and aggregate limits for subsidized (Sub) and unsubsidized (Unsub) loans in standard programs.
Year | Dependent Students (except students whose parents are unable to obtain PLUS Loans) | Independent Students (and dependent undergraduate students whose parents are unable to obtain PLUS Loans) |
|---|---|---|
First-Year Undergraduate Annual Loan Limit | $5,500—No more than $3,500 of this amount may be in subsidized loans. | $9,500—No more than $3,500 of this amount may be in subsidized loans. |
Second-Year Undergraduate Annual Loan Limit | $6,500—No more than $4,500 of this amount may be in subsidized loans. | $10,500—No more than $4,500 of this amount may be in subsidized loans. |
Third-Year and Beyond Undergraduate Annual Loan Limit | $7,500—No more than $5,500 of this amount may be in subsidized loans. | $12,500—No more than $5,500 of this amount may be in subsidized loans. |
Graduate or Professional Students Annual Loan Limit | Not Applicable (all graduate and professional students are considered independent) | $20,500 (unsubsidized only) |
Subsidized and Unsubsidized Aggregate Loan Limit | $31,000—No more than $23,000 of this amount may be in subsidized loans. | $57,500 for undergraduates—No more than $23,000 of this amount may be in subsidized loans. $138,500 for graduate or professional students—No more than $65,500 of this amount may be in subsidized loans. The graduate aggregate limit also includes all federal Subsidized and Unsubsidized loans received for undergraduate study. Graduate students are no longer eligible for new Subsidized loans after July 1, 2012. |
From Subsidized and Unsubsidized Loans | Federal Student Aid, https://studentaid.gov/understand-aid/types/loans/subsidized-unsubsidized#subsidized-vs-unsubsidized
Sub and Unsub loan limits are based on principal (gross amounts only) and they do not include interest or fees. Some specialized programs, such as certain health professions, may have higher limits; refer to detailed guidance from the US Department of Education. Other federal loans, such as PLUS and Perkins, have separate processes and those loans do not use these limits.
Other Factors Affecting Loan Amounts
A student will not always have loans matching the annual limits. Other factors can affect a loan's actual amounts. A few common factors are:
- Remaining COA, EFC, and Need:
- Loans cannot exceed remaining COA.
- Sub loans cannot exceed Need.
- See Direct Loan Amount Calculations and Aggregate Adjustments for more details.
- If the loan has any overlapping loan periods
- Whether the school is configured to automatically award Grade Level Progression - see Institution Setup Data Elements
- If the student is reaching their Aggregate limits - see Direct Loan Amount Calculations and Aggregate Adjustments
- If the student has part of the AY ineligible for loans, and the school is configured to not "Award Full Eligibility for Eligible Periods Only" - see Fund Setup Data Elements
- If the amount is paid before eligibility changes, and the school does not Allow Auto-Adjustment of Paid Disbursements - see Fund Setup Data Elements
Unsub loans do not require financial need, but they are limited by COA. For example, a fourth-year independent undergraduate might have a $50,000 EFC and $10,000 COA. The student could not borrow any Sub loans, but they could borrow Unsubsidized loans up to $10,000 because the loan amount cannot exceed COA.
The exact amounts (Sub or Unsub) may be different for each student. The amounts depend on the student's Financial Need. If the student has no financial need (for example, if EFC > COA), the student would not have any Subsidized loans. However, a high-EFC student can still borrow Unsubsidized loans up to COA or the relevant annual limit, whichever amount is lower.