<p>Okay, so I'm a new graduate student, set to start my program in January. Everything was going well until I found out tonight that my FAFSA has been flagged as going over my aggregate Direct Loan limit as an undergrad. I'm not sure how that's possible, but as an undergrad I borrowed approximately 76,000 (had no family support, etc) When I called the Federal Student Aid customer service line (because my FAO is closed at the moment), the CSR (who seemed somewhat confused) told me that my school may require me to pay down my loans to below the undergraduate aggregate loan limit before being able to take out Direct Loans towards my graduate education. Is this true!? I thought that as long as one hadn't borrowed the full 138,500 graduate aggregate limit, you could still get Direct Loans for graduate school. Worried - Please help!</p>
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Yes you need to lower your undergraduate loans below the undergraduate limit. </p>
<p>See the answer to question #5 <a href=“http://www.ifap.ed.gov/dpcletters/attachments/Gen1302attachment2.pdf”>http://www.ifap.ed.gov/dpcletters/attachments/Gen1302attachment2.pdf</a>
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<p>The independent undergrad loan limit is 57,500. I wonder how that happened?</p>
<p><a href=“https://studentaid.ed.gov/types/loans/subsidized-unsubsidized#how-much”>https://studentaid.ed.gov/types/loans/subsidized-unsubsidized#how-much</a></p>
<p>That absolutely should not have happened, and I frankly cannot understand how it did (I am an aid administrator). If it is correct, you can resolve the overaward by signing a reaffirmation agreement. However, I would encourage you to make sure that your loan amounts are correct first. Go to <a href=“http://www.nslds.ed.gov”>www.nslds.ed.gov</a> and sign in using your FAFSA PIN. Look at your loans. Post here with the academic year, the type (sub or unsub) and the amount for each. If you were at multiple schools, indicate whether the loan was School A, School B, etc. I will see if I notice anything unusual.</p>
<p>@kelsmom, I used to think that it was not possible to accidentally exceed your aggregate loan limit like that. If the limit was $57000 (or whatever), you could not get $76000 in Direct Loans. I don’t see how this student could have borrowed 130% of their Direct Loan aggregate limit without noticing; surely the school’s FA office would have cut them off at some point during undergrad. Could it be an issue with transferring?</p>
<p>I can easily see a student not noticing - many of them have no clue about things like aggregate limits. There must have been something amiss on the school’s end. </p>
<p>Is it the interest that accrued? And/or perhaps penalties like late fees too?</p>
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<p>Yes, but I would think that the school would notify them, I mean.</p>
<p>For example, if the limit was $57000 and the student was starting their fall semester senior year with a balance of $56000, the Financial Aid office would only give them a $100 in Direct Loan. I think it would be completely irresponsible for the school to award aid that they know that the student is not legally permitted to accept.</p>
<p>I’m also having a hard time imagining someone accruing tens of thousands of dollars of interest on their loans pushing them over the limit without the school cutting them off.</p>
<p>That is why I was saying the school obviously committed an egregious error. </p>
<p>Why is everyone assuming the OP just graduated? Instead of some egregious error having occurred, isn’t the most likely scenario that the undergrad loans were in deferral for a few years and just accrued too much interest? </p>
<p>Am I missing or misunderstanding something? Don’t loans in deferral accrue interest? And when in repay, aren’t there late fees if the proper amounts are not paid by due dates? </p>
<p>The graduate school wouldn’t have notified OP if he/she had not borrowed over the aggregate limit for an undergraduate student. The FAFSA was flagged as the graduate school was likely reviewing to award aid for the spring. </p>
<p>^^^So the grad school sees the actual amounts borrowed, not a current outstanding balance?</p>
<p>Yes, the graduate school has the ability to view all of the loans borrowed and where the amounts were borrowed. If they are willing to, they should be able to pinpoint which school over-awarded the student. </p>
<p>It is possible to be over awarded by a school, but usually it’s just a few thousand when it happens. There are things that can be in play here, including interest that is somehow being counted into the loan limit. The aid office should be reviewing each loan, counting only the outstanding principle of the loans (or underlying loans, in the case of a consolidation loan), and recalculating. I have also seen times when loans were listed twice for some reason (I had a student with that issue this past year). That is why I hoped the OP would list the info I requested - I can pretty easily pinpoint what may have happened if I see that info. </p>
<p>The FSA folks that OP spoke with would not have done any evaluation of the loans. They would just provide standard responses. If OP doesn’t want to post the loan info here, he/she should contact the aid office of a school to which the FAFSA was sent & ask them to review the issue.</p>