In	some	cases,	a	student	who	previously	received	undergraduate	and	graduate	degrees	returns	to	school	to	complete	a
second	undergraduate	program.	Only	the	loans	that	the	student	received	for	the	first	undergraduate	program	are
included	in	determining	the	student9s	remaining	eligibility	for	loans	for	the	second	undergraduate	program,	up	to	the
undergraduate	aggregate	limits.	Although	loans	received	for	graduate	study	are	not	counted	toward	a	student9s
undergraduate	aggregate	loan	limit,	the	combined	loan	amounts	received	for	undergraduate	and	graduate	programs	may
not	exceed	the	total	allowable	aggregate	loan	limits.
Treatment	of	Direct	Subsidized	Loans	and	Direct	Unsubsidized	Loans	Received	for	Teacher	Certification	Coursework	or
Preparatory	Coursework
Students	receiving	Direct	Loans	for	teacher	certification	coursework	or	for	preparatory	coursework	(including	preparatory
coursework	required	for	admission	to	a	graduate	or	professional	program)	are	considered	to	be	undergraduates	for	all
Title	IV	purposes.	Therefore,	Direct	Subsidized	Loans	and	Direct	Unsubsidized	Loans	that	a	student	receives	for	teacher
certification	coursework	or	preparatory	coursework	are	counted	against	the	student's	undergraduate	aggregate	loan
limits.	(See	Chapter	1	of	this	volume	and	the	discussion	earlier	in	this	chapter	for	guidance	on	Direct	Loan	eligibility	for
Volume	8,	Chapter	4,	Example	2:	Returning	to	an	Undergraduate	Program	After	Receiving	Loans	for	Graduate	Study
An	independent	student	has	received	the	following	loan	amounts	for	a	first	undergraduate	program	and	a
graduate	program:
Subsidized: Unsubsidized: Total
Undergraduate $19,000 $26,000 $45,000
Graduate $0 $86,000 $86,000
Total $19,000 $112,000 $131,000
The	student	has	now	enrolled	in	a	second	undergraduate	program.	Only	the	loans	received	for	the	first
undergraduate	program	are	counted	toward	the	student9s	undergraduate	aggregate	loan	limit.	Because	the	total
amount	received	for	the	first	undergraduate	program	($45,000)	does	not	exceed	the	aggregate	loan	limit	for	an
independent	undergraduate	($57,500,	maximum	$23,000	subsidized),	the	student	has	remaining	loan	eligibility
for	the	second	undergraduate	program.
The	difference	between	the	independent	undergraduate	aggregate	loan	limit	and	the	total	amount	of	the	loans
received	for	the	first	undergraduate	program	is	$12,000.	However,	the	student	may	not	receive	the	full	$12,000,
because	that	amount,	when	combined	with	the	amount	received	for	the	first	undergraduate	program	and	the
amount	received	for	the	graduate	program,	would	exceed	the	combined	undergraduate	and	graduate	aggregate
loan	limit	of	$138,500:
$45,000	+	$86,000	+	$12,500	=	$143,500
Therefore,	the	student9s	remaining	loan	eligibility	for	the	second	undergraduate	program	is	$7,500	($138,500
minus	$131,000	already	received	for	the	first	undergraduate	program	and	the	graduate	program).	Not	more	than
$4,000	of	this	amount	may	be	subsidized	($23,000	undergraduate	subsidized	aggregate	loan	limit	minus	$19,000
in	subsidized	loans	received	for	the	first	undergraduate	program).
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