Getting the Independent Student Loan Limit After Parent Plus Loan Denial?

Paying for College
1

I know that if my parent gets denied for a Parent Plus loan, I’ll probably be able to raise my federal loan limits to that of an independent student. If I want to keep getting the independent student limit, though, will my parent have to apply for a Plus loan every year?

If he will have to apply every year, he’ll probably be eligible after this year or next. How would that affect my aggregate limit? Dependent students are allowed to take out $31,000 and independent students are allowed to take out $57,500. If I took out the maximum amount for independent students during my first two years, would it affect my eligibility for student loans later on? For instance, if I borrowed $20,000 the first two years as an “independent” student due to my parent getting denied a Plus loan, would I only be able to borrow a total of $11,000 for my last two years? (the difference between the dependent student limit and the amount borrowed for my first two years) Or would I be able to borrow the full $15,000? (7,500 each year)

2

Your parent does have to apply year after year to get denied for the loan increase. Also, you will be able to borrow the full $15,000 your last two years of school because the increases for a PLUS denial are not taken into consideration when calculating UG loan limits. Your school will see that the loan amounts borrowed were due to a denial, and they will allow you to borrow at the dependent level if a parent is approved in the future.