Note	that	for	dependent	undergraduates,	the	annual	loan	limits	shown	above	in	Tables	2A	and	2B	do	not	provide	an
additional	unsubsidized	loan	amount	beyond	the	maximum	annual	subsidized	amount,	as	is	the	case	with	the	loan	limits
for	independent	undergraduates	and	dependent	undergraduates	whose	parents	cannot	get	Direct	PLUS	Loans.	For
dependent	undergraduates	enrolled	in	preparatory	coursework	or	teacher	certification	programs,	there	is	just	a	single
annual	loan	limit	representing	the	maximum	amount	of	subsidized	and/or	unsubsidized	loans	that	the	student	may
receive	for	an	academic	year.
For	example,	a	dependent	undergraduate	taking	preparatory	coursework	required	for	enrollment	in	a	graduate	or
professional	program	could	receive	up	to	$5,500	per	academic	year	in	Direct	Loan	funds,	which	could	be	all	subsidized,	all
unsubsidized,	or	a	combination	of	subsidized	and	unsubsidized.	In	contrast,	an	independent	undergraduate	taking	the
same	preparatory	coursework	could	receive	up	to	$12,500	per	academic	year,	not	more	than	$5,500	of	which	could	be
subsidized.
Loan	limits	for	preparatory	coursework	and	teacher	certification	coursework	are	not	subject	to	proration	(see	Chapter	5	of
this	volume)	if	the	coursework	is	less	than	a	full	academic	year.
Combined	Undergraduate	and	Graduate	Programs
Some	programs	combine	undergraduate	and	graduate	study	and	allow	a	student	to	complete	both	a	bachelor's	degree
and	a	graduate	or	professional	degree	within	the	same	program.	These	are	referred	to	as	"dual	degree	programs."	For
instance,	a	school	could	offer	a	5-year	dual	degree	program	leading	to	both	a	bachelor's	degree	and	a	graduate	or
professional	degree	and	could	define	the	first	three	or	four	years	of	study	as	being	at	the	undergraduate	level,	and	the
remaining	year(s)	of	study	as	being	at	the	graduate	or	professional	level.	A	student	may	receive	Direct	Loans	at	the
applicable	undergraduate	annual	loan	limits	(as	well	as	other	
Title	IV	aid	at	the	undergraduate	level)	during	the
undergraduate	portion	of	such	a	program,	and	then	may	receive	Direct	Loans	at	the	graduate	and	professional	student
annual	loan	limit	(and	also	Direct	PLUS	Loans)	for	the	graduate	and	professional	portion	of	the	program.
See	Volume	1	for	more	detailed	guidance	on	student	eligibility	for	Title	IV	aid	in	programs	that	combine	undergraduate
and	graduate	study,	including	programs	that	lead	only	to	a	graduate	or	professional	degree,	but	admit	students	who	do
not	yet	meet	the	regulatory	requirements	to	be	considered	graduate	or	professional	degree	students.
Students	Returning	for	a	Second	Baccalaureate	Degree
If	a	student	with	a	baccalaureate	degree	enrolls	in	another	baccalaureate	program,	the	student9s	grade	level	for	loan	limit
purposes	would	be	based	on	the	amount	of	work	that	the	school	counts	toward	satisfying	the	requirements	of	the	new
program.	For	instance,	if	your	school	accepts	30	semester	hours	of	a	student9s	work	in	a	previous	baccalaureate	program
toward	the	requirements	for	a	BS	in	Chemistry	at	your	school	and,	on	that	basis,	classifies	the	student	at	the	second-year
level,	then	the	student	would	be	eligible	for	second-year	undergraduate	loan	limits	(see	<Loan	Limit	When	a
Baccalaureate	or	Associate	Degree	Is	Required	for	Admission	to	an	Undergraduate	Program=	earlier	in	this	chapter	for	the
loan	limit	that	applies	when	a	student	is	required	to	have	a	prior	associate	or	baccalaureate	degree	as	a	condition	for
being	admitted	to	an	undergraduate	program).
Students	Who	Transfer	From	a	Graduate	Program	to	an	Undergraduate	Program	During	an	Academic	Year
If	a	student	transfers	from	a	graduate	program	to	an	undergraduate	program	in	the	middle	of	an	academic	year,	the
undergraduate	annual	loan	limit	for	the	student9s	grade	level	applies	but	amounts	previously	borrowed	at	the	graduate
level	within	the	same	academic	year	do	not	count	against	the	undergraduate	annual	loan	limit.	However,	the	total	amount
awarded	for	the	academic	year	may	not	exceed	the	higher	(graduate	or	professional)	annual	loan	limit.
Volume	8,	Chapter	4,	Example	1:	Transfer	From	a	Graduate	to	Undergraduate	Program	During	the	Same	Academic
Year
A	student	who	received	$10,250	in	Direct	Unsubsidized	Loan	funds	for	a	fall	semester	loan	as	a	graduate	student
enrolls	in	an	undergraduate	program	at	the	same	school	in	the	spring	semester	of	the	school9s	fall-spring
academic	year	and	is	classified	as	a	third-year	independent	undergraduate.	As	a	third-year	independent
undergraduate,	the	student9s	annual	loan	limit	is	$12,500,	not	more	than	$5,500	of	which	may	be	subsidized.
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