Undergrad subsidized loan limit exceeded. How does that affect grad loan?

[circumflex]

I was enrolled in a BA program from 2009 to 2013 and somehow I have $24,750 in subsidized loans despite the limit being $23,000. Not sure how or why my university allowed that to happen. In total, I borrowed $34,750 so I am still well under the aggregate undergraduate limit.

I'm applying for 2020 entry to a grad program and just received my FAFSA student aid report. The following line was casually thrown into an otherwise unassuming block of text:

• Based upon data provided by the National Student Loan Data System (NSLDS) and your grade level, we have determined that you may have received a total amount of undergraduate student loans that exceeds the loan limits established for the federal loan programs.

I just called them and the lady assured me everything was fine, and that I will in fact still be able to take out subsidized loans for grad school! Until I double checked what she said after we hung up and half of what she told me was flat out wrong. ? Spoiler: you can not take out subsidized loans for graduate programs anymore.

But she did refer me to this page, and:

• $138,500 for graduate or professional students—No more than $65,500 of this amount may be in subsidized loans. The graduate aggregate limit includes all federal loans received for undergraduate study.
• Effective for periods of enrollment beginning on or after July 1, 2012, graduate and professional students are no longer eligible to receive Direct Subsidized Loans. The $65,500 subsidized aggregate loan limit for graduate or professional students includes subsidized loans that a graduate or professional student may have received for periods of enrollment that began before July 1, 2012, or for prior undergraduate study.

but...

• If the total loan amount you receive over the course of your education reaches the aggregate loan limit, you are not eligible to receive additional loans. However, if you repay some of your loans to bring your outstanding loan debt below the aggregate loan limit, you could then borrow again, up to the amount of your remaining eligibility under the aggregate loan limit.

My question is: has anyone been in a similar situation? Will this be a problem? Do I need to pay down the extra ~$2,000 in order to be eligible? I'd like to think that my $24,750 falls within the $65,500 limit including periods of enrollment prior to July 1, 2012, but I just literally cannot afford to wait and find out next year that I'm completely ineligible for loans.

Edited October 8, 2019 by circumflex

[PsyDuck90]

Subsidized loans for graduate study don't exist anymore, so there is no way for you to reach that $65k subsidized loan limit. Unless you're planning to rack up about $100k in loans in grad school, you don't have to worry about hitting your aggregate amount limit. 

[Hip Priest]

you're way below the limit, but look into GradPlus loans if there is an issue. This will get you through any hoops

[circumflex]

8-month update: my institution has finally begun processing US financial aid applications and told me this matter needs attention. ? Apparently I just need a Reaffirmation Letter, which supposedly rolls over/consolidates the excess amount I took above the undergraduate limit (~1,750) into my postgrad loan, if I'm not mistaken. The loan servicer rep was not very helpful, but the uni email made it seem like I just need to obtain this letter, which was easily generated in my loan servicer's web portal. Wish me luck!

[gentvenus]

How did the loan limit get exceeded in the first place?

[circumflex]

19 hours ago, gentvenus said:

How did the loan limit get exceeded in the first place?

Supposedly it's common for "inadvertent overborrowing" to occur. I would always request the maximum amount available every semester and I was under the impression that my school would reject the request if I hit the limit. I saw on some random website this week that sometimes borrowed amounts are reported on a delay and that could have been why my uni allowed me to overborrow at the time.

At this point, my future uni has filled out their part of the Reaffirmation Letter so now all that's left is for me to sign it and upload it to the loan servicer's web portal, which I'm about to do. I think it takes 4-6 weeks to process.

Edited June 15, 2020 by circumflex

[gentvenus]

I see. Thanks for sharing! Clearly you are not at fault for their own administrative timing delays. They should waive the overborred amounts! ?

[Lewis-H]

$57,500 for undergraduates—No more than $23,000 of this amount may be in subsidized loans. $138,500 for graduate or professional students—No more than $65,500 of this amount may be in subsidized loans. The graduate aggregate limit includes all federal loans received for undergraduate study.
 

[circumflex]

The saga is completed. The reaffirmation agreement was approved within about a week of submission.