A	first-year	dependent	student	has	a	COA	of	$10,800	and	an	SAI	of	8,000,	so	the	student9s	financial	need	is
$2,800:
$10,800	COA	-	8,000	SAI	=	$2,800	financial	need
The	student	is	not	eligible	for	a	Pell	Grant,	and	the	school	does	not	participate	in	the	Campus-Based	Programs.
The	combined	Direct	Subsidized	Loan	and	Direct	Unsubsidized	Loan	annual	loan	limit	for	a	first-year	dependent
student	is	$5,500	(maximum	$3,500	subsidized).	The	student	qualifies	for	a	$2,800	Direct	Subsidized	Loan	to	fully
cover	their	financial	need.
Eligibility	for	a	Direct	Unsubsidized	Loan	is	determined	by	subtracting	OFA	from	the	COA	(the	SAI	is	not	taken	into
consideration):
$10,800	COA	-	$2,800	Direct	Subsidized	Loan	=	$8,000	Direct	Unsubsidized	Loan	eligibility
This	full	amount	cannot	be	covered	with	a	Direct	Unsubsidized	Loan	because	of	the	$5,500	combined	Direct
Subsidized	Loan/Direct	Unsubsidized	Loan	annual	loan	limit.	However,	the	student	is	eligible	to	borrow	an
additional	$2,700	in	the	form	of	a	Direct	Unsubsidized	Loan	to	cover	part	of	the	SAI:
$5,500	combined	subsidized/unsubsidized	annual	loan	limit	-	$2,800	Direct	Subsidized	Loan	=	$2,700	in
remaining	Direct	Unsubsidized	Loan	eligibility	under	the	annual	loan	limit
The	student9s	parents	could	then	borrow	a	Direct	PLUS	Loan.	As	with	Direct	Unsubsidized	Loans,	eligibility	for
Direct	PLUS	Loans	is	determined	by	subtracting	OFA	from	the	COA:
$10,800	COA	-	$2,800	Direct	Subsidized	Loan	-	$2,700	Direct	Unsubsidized	Loan	=	$5,300	in	Direct	PLUS	Loan
eligibility
The	Direct	PLUS	Loan	would	cover	the	remaining	portion	of	the	SAI	and	fully	cover	the	COA:
$10,800	COA	-	$2,800	Direct	Subsidized	Loan	-	$2,700	Direct	Unsubsidized	Loan	-	$5,300	Direct	PLUS	Loan	=	$0
unmet	cost
As	an	alternative	to	the	student	taking	out	the	$2,700	Direct	Unsubsidized	Loan,	the	student9s	parent	could
borrow	up	to	$8,000	in	the	form	of	a	Direct	PLUS	Loan	to	replace	the	SAI	and	fully	cover	the	COA:
$10,800	COA	-	$2,800	Direct	Subsidized	Loan	=	$8,000	in	Direct	PLUS	Loan	eligibility
Another	option	(to	eliminate	the	need	for	the	student	to	incur	any	student	loan	debt	at	all)	would	be	for	the
student9s	parent	to	take	out	a	Direct	PLUS	Loan	in	the	amount	of	$10,800	to	cover	the	full	COA.
Volume	3,	Chapter	3,	Example	5:	Replacing	the	SAI	With	Unsubsidized	Loan	Funds:	Independent	Student
A	first-year	independent	student	has	a	COA	of	$9,000	and	an	SAI	of	2,050,	resulting	in	financial	need	of	$6,950:
$9,000	COA	3	2,050	SAI	=	$6,950	financial	need
The	student	is	eligible	for	a	$5,450	Pell	Grant*,	and	the	school	also	awards	a	$1,000	FSEOG.	This	leaves	the
student	with	remaining	need	of	$600,	which	can	be	covered	with	a	Direct	Subsidized	Loan:
$9,000	COA	3	2,050	SAI	-	$5,450	Pell	Grant	-	$1,000	FSEOG	=	$500	Direct	Subsidized	Loan	eligibility
The	student9s	financial	need	is	now	fully	covered	by	the	Pell	Grant,	FSEOG,	and	Direct	Subsidized	Loan.
The	combined	Direct	Subsidized	Loan	and	Direct	Unsubsidized	Loan	annual	loan	limit	for	a	first-year	independent
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