Repayment	of	the	Excess	Loan	Amount
If	a	student	who	has	inadvertently	overborrowed	wishes	to	regain	
Title	IV	eligibility	by	repaying	the	excess	loan	amount,
the	student	must	contact	the	applicable	servicer	and	comply	with	the	servicer9s	repayment	instructions.	The	school	may
assist	the	student	in	identifying	and	contacting	the	servicer,	but	the	student,	not	the	school,	must	make	the	payment	of
the	excess	loan	funds	in	accordance	with	the	servicer9s	instructions.	Once	the	student	has	repaid	the	excess	loan	amount
in	full,	the	servicer	will	send	the	student	confirmation	that	the	excess	loan	amount	has	been	repaid.	The	student	or
servicer	must	provide	a	copy	of	the	repayment	confirmation	to	the	school.	The	inadvertent	overborrowing	is	considered	to
have	been	resolved	as	of	the	date	the	servicer	received	the	borrower9s	full	payment	of	the	excess	loan	amount.
Satisfactory	Repayment	Arrangements	(<Reaffirmation=)
A	student	who	has	inadvertently	overborrowed	may	also	regain	Title	IV	eligibility	by	making	satisfactory	repayment
arrangements	to	repay	the	excess	loan	amount.	This	requirement	can	be	met	if	the	student	agrees	in	writing	to	repay	the
excess	amount	according	to	the	terms	and	conditions	of	the	promissory	note	that	supported	the	loan.	This	is	called
<reaffirmation.=	The	reaffirmation	process	includes	the	following	five	steps:
1.	 Either	the	student	or	the	school	where	the	student	is	requesting	additional	Title	IV	funds	contacts	the	servicer	of	the
loan	that	caused	the	overborrowing	and	explains	that	the	student	has	inadvertently	overborrowed	and	wishes	to
reaffirm	the	debt.
2.	 The	servicer	sends	the	student	a	reaffirmation	agreement.
3.	 The	student	reads,	signs,	and	returns	the	reaffirmation	agreement	to	the	servicer.
4.	 The	servicer	sends	the	student	confirmation	that	the	reaffirmation	agreement	has	been	accepted.	The	student	or
servicer	must	provide	a	copy	of	the	confirmation	to	the	school	where	the	student	is	requesting	Title	IV	funds.
5.	 The	inadvertent	overborrowing	is	considered	to	have	been	resolved	as	of	the	date	the	servicer	receives	the	student9s
signed	reaffirmation	agreement.
Consolidation	of	Loan	Amounts	That	Exceed	the	Annual	or	Aggregate	Loan	Limit
If	a	borrower	who	inadvertently	received	more	than	the	annual	or	aggregate	loan	limits	has	consolidated	the	loan(s)	that
caused	the	borrower	to	exceed	the	loan	limit	into	a	Direct	Consolidation	Loan,	the	Direct	Consolidation	Loan	is	considered
a	satisfactory	arrangement	to	repay	the	excess	amount.	This	restores	the	borrower9s	eligibility	for	Title	IV	aid.	If	the	school
where	the	student	is	seeking	aid	confirms	through	NSLDS	that	the	loan(s)	have	been	consolidated,	no	further	action	is
required.	Note,	however,	that	consolidation	of	an	amount	that	exceeded	the	combined	aggregate	loan	limit	for	Direct
Subsidized	Loans	and	Direct	Unsubsidized	Loans	does	not	automatically	make	a	student	eligible	for	additional	Direct	Loan
funds.
before	the	student	can	receive	additional	Title	IV	aid.
Regaining	 Title	IV 	Eligibility	After	Inadvertent	Overborrowing
34	CFR	668.35(d)
DCL	GEN-15-20
DCL	GEN-13-02
Department	of	Education	Office	of	the	Inspector	Gen eral	Hotline
{"producer": "GPL Ghostscript 10.00.0", "creator": "wkhtmltopdf 0.12.6", "creationdate": "D:20250605165703Z00'00'", "moddate": "D:20250605165703Z00'00'", "source": "data/raw/The_Direct_Loan_Program.pdf", "total_pages": 71, "page": 10, "page_label": "11", "loader_type": "pdf", "load_timestamp": "2025-07-05T11:43:14.400010"}