Well, our finals were the week of May 5 and graduation was May 10. I thought I would have a better handle on my time after school let out, but that hasn't been the case! And just as I feel the need to search for blog topics, some new project or issue comes across my desk which spurs my thoughts. Hopefully I'll remember them for my next post.
I mentioned in my last post that I would talk about aggregate loan limits. What does aggregate mean? According to the Webster College Dictionary, aggregate means 1) collect into a sum, mass, or body 2) amount to (a number) 3) gross amount. So how does that come into play with your loans? You not only have a federal limit to how much you can borrow per academic year, you have a limit as to how much you can borrow overall while you are in college. This amount you borrow throughout your entire college experience is called the aggregate, or sum of all loans.
These are the new federal aggregate limits effective July 1, 2008:
Undergraduate students:
- Dependent: A maximum of $31,500, of which no more than $23,000 can be subsidized loan
- Independent: A maximum of $57,500, of which no more than $23,000 can be subsidized loan.
- In essence, an undergraduate student cannot borrow more than $23,000 subsidized loan and the rest of the aggregate limit can be in unsubsidized.
Graduate and Professional students:
- A maximum of $138,500, of which no more than $65,500 can be subsidized loan.
Preparatory Coursework and Teacher Certification:
- Maximums will most likely be the same as an undergraduate student.
- Still undetermined since academic year loan amounts have not yet been finalized.
Once you have reached your aggregate loan limit, you are no longer eligible for federal subsidized/unsubsidized loans for the type of degree you are seeking. If you pursue an advanced education, your loan aggregate could increase, but will always include the amount you have previously borrowed.
For example, say you are an independent undergraduate student who has borrowed $57,500 as of May 2008, but you don't plan to graduate with your bachelor's degree until December 2008. You then plan on returning in January 2009 as a graduate student pursuing a graduate degree. You are not eligible for a subsidized/unsubsidized loan for fall 2008 because you have already borrowed the aggregate limit of $57,500 as an undergraduate. However, when you return in the spring semester, you will now be a graduate student and eligible for up to $138,500 in total loans, which includes the $57,500 you have already borrowed at the undergraduate level.