Volume	8,	Chapter	4,	Table	1C:	Graduate	and	Professional	Student	Annual	Limits	for	Direct	Unsubsidized	Loans
Graduate	and	Professional	Students Total	(Unsubsidized 	Only)
All	years $20,500
Loan	Limit	Level	for	Transfer	Students
If	you9re	awarding	a	Direct	Loan	to	a	student	who	is	transferring	from	a	program	at	another	school	to	a	program	at	your
school	that	is	greater	than	one	academic	year	in	length,	you	may	use	the	loan	limits	for	a	second-year	or	higher
undergraduate	if	your	school	classifies	the	student	at	that	level	based	on	the	number	of	academic	credits	it	accepts	from
the	prior	school,	or	based	on	the	granting	of	advance	standing	in	the	new	program	(but	see	below	for	guidance	on	when
schools	are	required	to	use	the	third-year	and	beyond	undergraduate	annual	loan	limits	for	a	transfer	student).
Loan	Limit	When	a	Baccalaureate	or	Associate	Degree	Is	Required	for	Admission	to	an	Undergraduate	Program
For	a	student	who	has	an	associate	or	baccalaureate	degree	that	is	required	for	admission	into	an	undergraduate
program,	you	must	use	the	third-year	and	beyond	undergraduate	loan	limits	for	that	student.
Annual	Loan	Limits	for	Direct	PLUS	Loans
There	are	no	fixed	annual	loan	limits	for	Direct	PLUS	Loans.	A	graduate	or	professional	student	may	be	awarded	a	Direct
PLUS	Loan	for	up	to	the	student9s	COA	minus	OFA	(see	Volume	3,	Chapter	3	for	packaging	rules).	Therefore,	a	graduate	or
professional	student	who	has	received	the	maximum	Direct	Unsubsidized	Loan	amount	for	an	academic	year	may	have
additional	Direct	PLUS	Loan	eligibility.	Similarly,	the	total	Direct	PLUS	Loan	amount	borrowed	by	a	parent	on	behalf	of	a
dependent	student	may	not	exceed	the	student9s	estimated	COA	minus	OFA	the	student	receives	for	the	period	of
enrollment.	This	is	the	only	borrowing	limit	for	Direct	PLUS	Loans.
Annual	Loan	Limit	for	Programs	Greater	Than	One	Academic	Year,	But	Less	Than	Two	Academic	Years	in	Length
The	<Eligibility	and	Certification	Approval	Report=	(ECAR)	lists	<one-year=	as	the	highest	educational	program	offered	by	a
school	if	its	longest	program	is	one	academic	year	or	more	in	length,	but	less	than	two	academic	years.	Students	who
have	successfully	completed	the	first	academic	year	of	such	programs	can	be	treated	as	second-year	undergraduates	for
annual	loan	limit	purposes,	even	though	the	ECAR	lists	the	school9s	highest	program	offering	as	<one-year.=	For	instance,
a	student	enrolled	in	a	1,500	clock-hour	program	would	be	eligible	for	the	second-year	loan	limits	after	completing	the
first	900	clock	hours	and	26	weeks	of	instructional	time.	However,	because	the	remaining	portion	of	the	program	would	be
less	than	a	full	academic	year	in	length,	the	loan	limit	would	have	to	be	prorated,	as	explained	in	Chapter	5	of	this
volume.
Annual	Loan	Limits	for	One-Year	and	Two-Year	Programs
If	a	program	can	normally	be	completed	in	one	year	of	full-time	study,	a	student	in	that	program	can	never	receive	more
than	the	first-year	annual	loan	limit,	even	if	it	takes	the	student	more	than	one	academic	year	to	finish	the	program.
Similarly,	a	student	in	a	program	that	students	are	expected	to	complete	in	two	years	can	never	receive	more	than	the
second-year	annual	loan	limit	for	an	academic	year,	even	if	individual	students	sometimes	take	more	than	two	years	to
finish	the	program.	However,	some	schools	offer	associate	degree	programs	that	have	been	approved	by	the	school9s
state	licensing	agency	or	accrediting	agency	as	programs	that	require	more	than	two	academic	years	of	study	for	a	full-
time	student	to	complete.	Students	enrolled	in	such	a	program	may	receive	Direct	Loans	at	the	third-year	annual	loan
limit	after	they	have	successfully	completed	the	first	two	academic	years	of	the	program	and	if	the	school	has	a	grade
level	progression	standard	that	allows	for	third	year	level	loans.
Note	also	that	a	school	may	not	link	two	stand-alone	one-year	programs	by	making	one	a	prerequisite	for	admission	and
then	classify	students	beginning	the	second	one-year	program	as	second-year	undergraduates	for	loan	limit	purposes.
However,	hours	or	credits	earned	in	a	prior	certificate	program	could	be	used	to	classify	a	transfer	student	at	a	grade
level	higher	than	grade	level	one	if	the	student	transfers	into	a	program	that	is	greater	than	one	academic	year	in	length
and	the	new	school	accepts	a	year9s	worth	of	credits	or	hours	from	the	prior	program.	For	instance,	if	a	school	admits	a
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