<p>I know there is a lifetime limit for the amount of stafford loans one can get during their undergraduate time. My parents have and probably will get denied for a Plus loan all throughout my undergraduate time, will this be considered when it comes to lifetime limits? Meaning are students who have parents who get denied Plus Loans given a higher lifetime limit? </p>
<p>Does interest count towards the lifetime limit?</p>
<p>Thank you in advance.</p>
<p>If your parents were denied Plus loans, you’re eligible for the same loan limits as independent students:</p>
<p>$9500 First Year
$10500 Second Year
$12500 Thrid & Beyond
$57500 Lifetime Limit</p>
<p>Interest is not considered in computing the limits.</p>
<p>A dependent student has a lower aggregate limit than an independent student. When a student receives additional unsubsidized loan due to PLUS denial, he can get his loan at the independent level for the year in which the PLUS is denied. That does not automatically allow him to have an independent aggregate limit … the dependent limit is still what is looked at, and the aid officer has to look at how much was from dependent loan levels/how much from PLUS denials when calculating whether or not a student is going to exceed his aggregate limit.</p>
<p>kelsmom, I could see that the aggregate limit would change if the Plus wasn’t denied every year but this page seems to be saying that the aggregate is the same for independent undergrads and those denied Plus:</p>
<p>$57,500 for independent undergraduate students and dependent undergraduates whose parents are unable to borrow a PLUS loan (no more than $23,000 may be subsidized) </p>
<p>[Applying</a> for Federal Direct Loans](<a href=“http://www.direct.ed.gov/applying.html]Applying”>http://www.direct.ed.gov/applying.html)</p>
<p>Dependent students may borrow up to $31,000 as dependent students. Let’s say a student borrows the following:
5500 freshman FW + 4000 unsub due to PLUS denial
1000 sophomore Summer
6500 sophomore FW +4000 unsub due to PLUS denial
2000 junior Summer
7500 junior FW
7500 junior/senior FW</p>
<p>If you add everything up, the student has not reached the agg limit for an independent student. The total is $38,000, which is less than the independent agg limit. However, the student is really a dependent student, so his base loans (that is, his loans not including the additional unsub due to PLUS) cannot exceed the $31,000 dependent agg limit. The total of the base loans = 30,000. Because many students take less than a full time load in a given year — and they can get their full loan eligibility if they take at least a half time course load — they can max out their loans before finishing. This student is not done, but he only has another $1000 base unsub to his dependent agg limit. He will not get to borrow more than that $1000 (although he could get$5000 unsub if his parents are denied a PLUS), even though he has not reached the independent agg limit. That is because he is a dependent student & he cannot exceed $31,000 in his base loans.</p>
<p>So he might be able to get some more unsub due to PLUS denials, but he can’t get more than that last $1000 base unsub. This affects his borrowing power - he can only borrow $6000 in the next year (rather than the 12,500 he may have planned to borrow). Students who go part time can really get caught up in this.</p>