Chapter	4
Annual	and	Aggregate	Loan	Limits
Annual	Loan	Limit	Overview
Direct	Subsidized	Loans	and	Direct	Unsubsidized	Loans	have	annual	loan	limits	that	vary	based	on	the	student9s	grade
level	and	(for	Direct	Unsubsidized	Loans)	dependency	status.	The	annual	loan	limits	are	the	maximum	amounts	that	a
student	may	receive	for	an	academic	year.	The	actual	loan	amount	that	a	student	is	eligible	to	receive	may	be	less	than
the	annual	loan	limit.	(There	are	also	aggregate	loan	limits	for	Direct	Subsidized	Loans	and	Direct	Unsubsidized	Loans,
discussed	later	in	this	chapter.)
There	are	higher	Direct	Unsubsidized	Loan	annual	loan	limits	for	students	enrolled	in	certain	health	professions	programs,
and	special	loan	limits	for	certain	students	who	are	not	enrolled	in	a	program	that	leads	to	a	degree	or	certificate	awarded
by	the	school	they	are	attending.	Also,	the	annual	loan	limits	for	undergraduate	students	must	be	prorated	(reduced)	in
some	cases.
Depending	on	the	academic	calendar	of	the	program,	a	student	who	has	reached	the	annual	loan	limit	cannot	receive
another	Direct	Subsidized	Loan	or	Direct	Unsubsidized	Loan	until	they	either	begin	another	academic	year,	or,	in	some
cases,	progress	within	an	academic	year	to	a	grade	level	with	a	higher	annual	loan	limit.
Annual	Loan	Limits:	Basic	Principles
For	undergraduate	students,	there	is	a	combined	annual	loan	limit	for	Direct	Subsidized	Loans	and	Direct
Unsubsidized	Loans,	of	which	not	more	than	a	specified	amount	may	be	comprised	of	Direct	Subsidized	Loans.
For	graduate	or	professional	students,	the	annual	loan	limit	is	only	for	Direct	Unsubsidized	Loans.	Graduate	or
professional	students	are	not	eligible	to	receive	Direct	Subsidized	Loans.
An	undergraduate	student	who	is	ineligible	for	Direct	Subsidized	Loans	may	receive	up	to	the	full	combined
subsidized	and	unsubsidized	annual	loan	limit	in	Direct	Unsubsidized	Loans.
The	Direct	Subsidized	Loan	annual	loan	limits	are	the	same	for	both	dependent	and	independent	undergraduates.
Dependent	students	have	lower	combined	subsidized	and	unsubsidized	annual	loan	limits	than	independent
students.	However,	if	a	dependent	student9s	parent(s)	cannot	borrow	a	Direct	PLUS	Loan,	the	student	becomes
eligible	for	the	higher	combined	subsidized	and	unsubsidized	annual	loan	limits	that	are	otherwise	available	only	to
independent	students,	allowing	the	dependent	student	to	receive	additional	Direct	Unsubsidized	Loan	funds	(but	this
does	not	change	the	student9s	dependency	status).
The	annual	loan	limits	apply	to	the	academic	year	(that	is,	the	annual	loan	limit	is	the	maximum	loan	amount	that	a
student	may	receive	for	one	academic	year).
The	student9s	maximum	annual	loan	limit	increases	as	the	student	progresses	to	higher	grade	levels.
For	undergraduate	students,	the	loan	limit	must	be	prorated	if	the	student	is	enrolled	in	a	program	(or	in	the
remaining	portion	of	a	program)	that	is	less	than	an	academic	year	in	length.
Annual	Loan	Limits	for	Dependent	Undergraduates
Direct	Loan	Annual	Loan	Limits
34	CFR	685.203
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