What's Up with the FAFSA?

[EccentricAcademic]

So, I finished my FAFSA and got my aid report. 

 

This popped up:

 

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 is close to or equal to the loan limits established for the federal loan programs.

 

It then goes on to say something to the effect of: "your ability to take out loans might be limited."

 

What does this mean? That I'm not eligible for graduate loans? Or is the "loan limit" here meaning undergraduate loan limit? Do they mean I might be limited in taking out undergraduate loans?

I thought you could borrow up to around $130,000 in graduate loans….

 

Certainly I'm not reading it right?

 

I only have under or around 27,000 in undergraduate debt. 

Edited March 2, 2014 by Historian7

[geographyrocks]

There are limits to loans for undergraduates and graduates.  There are as follows:

Undergraduate

Subsidized: $23,000

Unsubsidized: $34,500

Graduate

Subsidized: $65,500

Unsubsidized: $73,000

The graduate limit is undergradate + graduate so you can take out an additional $42,500 in subsidized loans for your graduate study. 

So maybe that notification is saying that you've reached your UG limit of $23,000, but that doesn't (or shouldn't) affect your graduate limits. 

 

That is the way that I understand the process. 

Edited March 2, 2014 by geographyrocks

[EccentricAcademic]

Except that now graduate loans aren't subsidized, right? This is rather bewildering.

[EccentricAcademic]

Bump

[Munashi]

Except that now graduate loans aren't subsidized, right? This is rather bewildering.

 

You are correct that graduate students are no longer eligible for federal subsidized loans - ONLY unsubsidized.  I am not sure how this has affected the borrowing limit.

[geographyrocks]

Except that now graduate loans aren't subsidized, right? This is rather bewildering.

Awww crap!  I forgot that happened.  My numbers could be completely wrong now! 

 

Here's what they say:

$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.

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.

 

Sooooo they've taken away the graduate subsidized loan completely and HAVE NOT raised the limits for unsubsidized graduate loans. 

 

At least, that's how I'm reading it.