counted	toward	the	borrower9s	aggregate	Direct	Loan	limits.
Effect	of	a	Change	in	Student	Status	on	Aggregate	Loan	Limits
In	some	cases,	a	student	may	qualify	for	higher	loan	limits	but	then	lose	eligibility	for	the	higher	limits	due	to	a	change	in
status.	One	such	situation	is	when	a	dependent	undergraduate	qualifies	for	additional	Direct	Unsubsidized	Loan	amounts
because	the	student9s	parent	is	unable	to	obtain	a	Direct	PLUS	Loan,	but	in	a	subsequent	academic	year	the	student9s
parent	qualifies	for	a	Direct	PLUS	Loan.	In	this	circumstance	the	dependent	student	no	longer	qualifies	for	the	additional
unsubsidized	loan	amounts	at	the	higher	independent	undergraduate	annual	and	aggregate	loan	limits.	During	any
academic	year	when	a	dependent	student9s	parent	qualifies	for	a	Direct	PLUS	Loan,	the	student	is	subject	to	the
dependent	undergraduate	annual	and	aggregate	loan	limits,	but	only	loan	amounts	the	student	otherwise	would	have
been	eligible	to	receive	under	the	dependent	undergraduate	annual	loan	limits	are	counted	when	determining	the
student9s	remaining	eligibility	under	the	$31,000	combined	subsidized	and	unsubsidized	dependent	undergraduate
aggregate	limit	(see	Example	3	below).
A	similar	situation	occurs	when	a	student	who	received	loans	for	a	graduate	or	professional	degree	program	later	returns
to	school	and	enrolls	in	an	undergraduate	program.	The	student	is	then	subject	to	the	undergraduate	annual	and
aggregate	loan	limits,	but	only	loan	amounts	the	student	previously	received	as	an	undergraduate	are	counted	when
determining	the	student9s	remaining	eligibility	under	the	undergraduate	aggregate	loan	limit	(see	Example	2	earlier	in	this
chapter).
Volume	8,	Chapter	4,	Example	3:	Aggregate	Loan	Limits	and	Additional	Direct	Unsubsidized	Loan	Amounts	When
Parents	Are	Unable	To	Obtain	Direct	PLUS	Loans
A	dependent	student	receives	additional	Direct	Unsubsidized	Loan	funds	(up	to	the	additional	amounts	available
to	independent	undergraduates)	for	the	first	three	years	of	a	four-year	program	because	the	student9s	parent	is
unable	to	obtain	a	Direct	PLUS	Loan	for	each	of	those	years.
For	each	of	the	first	three	years,	the	student	receives	the	maximum	subsidized	and	unsubsidized	loan	amounts
under	the	independent	student	annual	loan	limits	(remember	that	the	annual	subsidized	maximums	are	the	same
for	dependent	and	independent	undergraduates):
First	Year	(independent	student	loan
limit)
$3,500
subsidized
$6,000	unsubsidized	($4,000	more	than	dependent
maximum)
Second	Year	(independent	student
loan	limit)
$4,500
subsidized
$6,000	unsubsidized	($4,000	more	than	dependent
maximum)
Third	Year	(independent	student	loan
limit)
$5,500
subsidized
$7,000	unsubsidized	($5,000	more	than	dependent
maximum)
Total $13,500
subsidized
$19,000	unsubsidized	($13,000	more	than	dependent
maximum)
In	the	fourth	year,	the	parent	is	eligible	to	borrow	a	Direct	PLUS	Loan,	so	the	student	is	then	subject	to	the	annual
and	aggregate	loan	limits	for	a	dependent	undergraduate.	The	dependent	student	received	a	total	of	$13,500	in
Direct	Subsidized	Loan	funds	and	$19,000	in	Direct	Unsubsidized	Loan	funds	($32,500	combined	subsidized	and
unsubsidized	total)	for	the	first	three	years	when	the	student9s	parent	was	unable	to	obtain	Direct	PLUS	Loans.
These	are	the	same	amounts	that	an	independent	student	who	qualified	for	the	maximum	annual	loan	limit	each
year	could	have	received.	If	the	student9s	parent	had	been	able	to	receive	Direct	PLUS	Loans	during	each	of	the
first	three	years	and	the	student	received	the	maximum	subsidized	and	unsubsidized	loan	amounts	under	the
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