New Increases to Loan Limits
Effective for Loans First Disbursed on or after July 1, 2008
The Ensuring Continued Access to Student Loans Act of 2008 (Public Law 110-227) , included provisions for increasing the borrowing limits for additional unsubsidized Stafford loans for undergraduate students by $2,000 and raising the aggregate borrowing limits to accommodate the increases. The subsidized Stafford loan limits have not changed and there are no changes for graduate and professional students.
These increases are effective for loans first disbursed on or after July 1, 2008, for loan periods that include July 1, 2008 or begin on or after July 1, 2008. For loan periods that crossover July 1, 2008, the increased loan limits only apply if (1) the FFEL loan certification or Direct Loan origination provides that the first disbursement will be on or after July 1, 2008, or (2) the institution certifies or originates a supplemental loan for the loan period where the first disbursement on the supplemental loan will be on or after July 1, 2008.
For schools that have already packaged for the 2008-2009 academic year, the school can either re-package an otherwise eligible student with the increased loan amounts or provide notification to the student that he or she may be eligible for increased amounts of unsubsidized loans.
OGSLP’s guarantee system is able to accept and process loan guarantee requests for the increased unsubsidized loan limits
New Annual Unsubsidized Stafford Loan Limits
The new annual additional unsubsidized Stafford loan limits are as follows:
• Undergraduate dependent students (except students whose parents cannot borrow a PLUS loan), can receive $2,000 additional unsubsidized Stafford loan. Prior to July 1, 2008, these students were not eligible to receive an additional unsubsidized Stafford loan, an increase from $0 to $2,000. The aggregate loan limit is increased from $23,000 to $31,000 with no more than $23,000 of which can be subsidized.
• Undergraduate independent students and dependent students whose parents cannot borrow a PLUS loan are eligible for $2,000 in additional unsubsidized Stafford loan. First and second year undergraduate students’ annual unsubsidized Stafford loan limits increase from $4,000 to $6,000 and third year and beyond students’ annual unsubsidized Stafford loan limits increase from $5,000 to $7,000. The aggregate loan limit is increased from $46,000 to $57,500 with no more than $23,000 of which can be subsidized.
• Graduate/Professional annual unsubsidized Stafford loan limits remain unchanged at $12,000. The aggregate loan limit is unchanged at $138,500 with no more than $65,500 of which can be subsidized.
• For undergraduate dependent students (except students whose parents cannot borrow a PLUS loan), enrolled in preparatory coursework for enrollments in an undergraduate program, the annual loan limit available remains unchanged at $2625.00. The additional unsubsidized Stafford loan limit available for preparatory coursework for enrollment in a graduate or professional program and teacher certification coursework remains unchanged with an annual loan limit of $5,500.
• For undergraduate independent students and dependent students whose parent are unable to borrow a PLUS loan enrolled in preparatory coursework for enrollment in an undergraduate program, the unsubsidized Stafford loan limits increase from $4,000 to $6,000. The additional unsubsidized Stafford loan limit available for preparatory coursework for enrollment in a graduate or professional program or in a teacher certification program remains unchanged at $7,000.
• For graduate or professional students enrolled in preparatory coursework or teacher certification, the additional unsubsidized Stafford loan annual limit is $7,000 (no change).
Note: The overall aggregate loan limits for all categories of undergraduate borrowers has been increased, but the portion of unsubsidized Stafford loans included in those limits remains unchanged.
For an at-a-glance summary of the new undergraduate, unsubsidized loan limits, check out OGSLP's Undergraduate Unsubsidized Loan Limit Chart.
Grade Level |
*Base Subsidized/ Unsubsidized |
**Additional |
Total Annual Loan Limit |
First Year– Dependent Students (excluding students whose parents cannot borrow a PLUS loan) |
$3,500 |
$2,000 |
$5,500 |
Second Year – Dependent Students (excluding students whose parents cannot borrow a PLUS loan) |
$4,500 |
$2,000 |
$6,500 |
Third Year and Beyond – Dependent Students (excluding students whose parents cannot borrow a PLUS loan) |
$5,500 |
$2,000 |
$7,500 |
First Year– Dependent Students whose parents cannot borrow a PLUS loan AND Independent Students |
$3,500 |
$6,000 |
$9,500 |
Second Year –Dependent Students whose parents cannot borrow a PLUS loan AND Independent Students |
$4,500 |
$6,000 |
$10,500 |
Third Year and Beyond –Dependent Students whose parents cannot borrow a PLUS loan AND Independent Students |
$5,500 |
$7,000 |
$12,500 |
‡ Graduate and Professional Students |
$8,500 |
$12,000 |
$20,500 |
‡ Health Professions – Graduate or Professional Students |
$8,500 |
$12,000 |
†$47,167 |
‡ Preparatory Coursework – for enrollment in an undergraduate program - Dependent Students (excluding students whose parents cannot borrow a PLUS loan) |
$2,625 |
$0 |
$2,625 |
‡ Preparatory Coursework – for enrollment in a graduate or professional program - Dependent Students (excluding students whose parents cannot borrow a PLUS loan) |
$5,500 |
$0 |
$5,500 |
‡ Teacher Certification – Dependent Students (excluding students whose parents cannot borrow a PLUS loan) |
$5,500 |
$0 |
$5,500 |
Preparatory Coursework – for enrollment in an undergraduate program - Dependent Students whose parents cannot borrow a PLUS loan AND Independent Students |
$2,625 |
$6,000 |
$8,625 |
‡ Preparatory Coursework – for enrollment in a graduate or professional program - Dependent Students whose parents cannot borrow a PLUS loan AND Independent Students |
$5,500 |
$7,000 |
$12,500 |
‡ Teacher Certification –Dependent Students whose parents cannot borrow a PLUS loan AND Independent Students |
$5,500 |
$7,000 |
$12,500 |
* Subsidized Stafford amounts are for dependent or independent students.
** “Additional” unsubsidized Stafford amounts are for dependent, independent students, or a dependent student whose parent is denied a PLUS loan.
†$47,167 is the $20,500 total annual graduate professional Stafford loans plus an additional $26,667 maximum HEAL limit in additional unsubsidized Stafford loans.
‡No changes to the annual unsubsidized Stafford loan amounts.
Classification |
Maximum Subsidized Borrowing |
Maximum Combined Borrowing |
Dependent Undergraduate Students (excluding students whose parents cannot borrow a PLUS loan) |
$23,000 |
$31,000 (of which no more than $23,000 can be subsidized) |
Dependent Undergraduate Students whose parents cannot borrow a PLUS loan AND Independent Undergraduate Students |
$23,000 |
$57,500 (of which no more than $23,000 can be Subsidized) |
Graduate and Professional Students |
$65,500 |
$138,500 (of which no more than $65,500 can be Subsidized). This debt includes any Stafford Loans borrowed during Undergraduate study. ) |
*Health Professions - Graduate and Professional Students |
$65,500 |
$224,000 (of which no more than $65,500 can be Subsidized). This debt includes any Stafford Loans borrowed during Undergraduate study.) |
* DCL GEN-08-04 increased the aggregate loan limit for health professions graduate and professional students from $189,125 (of which no more than $65,500 can be subsidized) to $224,000 (of which no more than $65,500 can be subsidized).
QuestionsIf you have questions regarding these system enhancements, please contact Lisa Hale at 405.234.4384.
References:• DCL GEN-08-08/FP-08-07
• DCL GEN-08-04
• All the above information is easily accessible on OGSLP Legislation Page
Effective for Stafford Loans First Disbursed on or after July 1
The Higher Education Reconciliation Act of 2005 (HERA), included provisions increasing the annual loan limits for undergraduate Stafford loans and unsubsidized Stafford loans for graduate and professional students. These increases are effective for Stafford loans first disbursed on or after July 1, 2007. The Department of Education has noted that the increased loan amounts may apply to loan periods that begin prior to July 1, 2007, provided the end of the loan period is on or after July 1, 2007, and the first disbursement date is on or after July 1, 2007.
OGSLP's system was ready to process loans eligible for the increased limits beginning February 16, 2007. The system will accept certifications as long as the first scheduled disbursement date and the loan period end date are on or after July 1, 2007. In cases where certifications are received with the new Stafford loan amount and a scheduled disbursement date and/or loan period end date prior to July 1, 2007, the loan amount will either be reduced to meet the eligible loan amount or the guarantee will suspend. If a school certifies a loan for a loan period that includes July 1, 2007, but has a first disbursement date prior to July 1, 2007, then on or after July 1, the school may certify a new loan up to the applicable new annual maximum loan limit.
New Annual Stafford Loan Limits
The new annual Stafford loan limits are as follows:
• Undergraduate first year students' annual subsidized Stafford loan limits increased from $2,625 to $3,500
• Undergraduate second year students' annual subsidized Stafford loan limits increased from $3,500 to $4,500
• Graduate/Professional annual unsubsidized Stafford loan limits increased from $10,000 to $12,000. Instead of a maximum of $18,500, graduate/professional students will be eligible for up to $20,500 in Stafford loans funds, where no more than $8,500 is subsidized.
• For students with an undergraduate degree who enrolled in courses needed for enrollment in a degree-granting program and students enrolled in a program necessary for professional certification as required for employment as a teacher, the annual unsubsidized Stafford loan limits have increased from $5,000 to $7,000. Instead of a maximum of $10,500, these students will be eligible for up to $12,500 in Stafford loan funds, of which no more than $5,500 may be subsidized.
Grade Level |
*Base Subsidized/ Unsubsidized |
**Additional |
Total Annual Loan Limit |
First Year |
$3,500 |
$4,000 |
$7,500 |
Second Year |
$4,500 |
$4,000 |
$8,500 |
Third Year and Beyond |
$5,500 |
$5,000 |
$10,500 |
Graduate/Professionals |
$8,500 |
$12,000 |
$20,500 |
Health Professions |
$8,500 |
$12,000 |
†$47,167 |
‡ Preparatory Coursework (enrolled in an undergraduate program) |
$2,625 |
$4,000 |
$6,625 |
Preparatory Coursework (enrolled in a graduate or professional program) |
$5,500 |
$7,000 |
$12,500 |
Teacher Certification |
$5,500 |
$7,000 |
$12,500 |
* Subsidized Stafford amounts are for dependent or independent students.
** “Additional” unsubsidized Stafford amounts are for independent students or a dependent student whose parent is denied a PLUS loan.
†$47,167 is the $20,500 total annual graduate professional Stafford loans plus an additional $26,667 maximum HEAL limit in additional unsubsidized Stafford loans
‡No changes to the annual subsidized or unsubsidized Stafford loan amounts.
Classification |
Maximum Subsidized Borrowing |
Maximum Combined Borrowing |
Dependent Undergraduate |
$23,000 |
$23,000 |
Independent Undergraduate |
$23,000 |
$46,000 (of which no more than $23,000 can be Subsidized) |
Graduate/Professional Student |
$65,500 |
$138,500 (of which no more than $65,500 can be Subsidized). This debt includes any Stafford Loans borrowed during Undergraduate study. |
Health Professions- Graduate and Professional Students |
$65,500 |
$189,125 (of which no more than $65,500 can be Subsidized). This debt includes any Stafford Loans borrowed during Undergraduate study. |
Questions
If you have questions regarding these system enhancements, please contact Lisa Hale at 405.234.4384.
References:
• DCL GEN-06-02/FP-06-01
• DCL GEN-06-03
• August 9, 2006 Federal Register interim final regulations
• November 1, 2006 Federal Register final regulations
• All the above information is easily accessible on OGSLP Legislation Page