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Federal Direct Loan Limits

Annual Loan Limits

The annual loan limit is the limit of Federal Direct loans that you can borrow during each academic year.

First year students - You are considered a first year student if you have completed less than 50% of your current program of study.

  • Dependent students* - $5,500, no more than $3,500 of this can be Subsidized.
  • Independent student – $9,500, no more than $3,500 of this can be Subsidized.

Second year students - You are considered a second year student if you have completed more than 50% of your current program of study.

  • Dependent students* - $6,500, no more than $4,500 of this can be Subsidized.
  • Independent student – $10,500, no more than $4,500 of this can be Subsidized.

*If your parents are denied a parent PLUS loan, you may qualify as an independent student for that year’s annual loan limits.

Aggregate Loan Limits

The aggregate loan limit is the total amount of Federal Direct loans that you can borrow as an undergraduate and graduate student.

  • Dependent students - $31,000, no more than $23,000 of this can be Subsidized**.
  • Independent student - $57,500, no more than $23,000 of this can be Subsidized**.

If you have previously borrowed loans, it is recommended that you complete Financial Awareness Counseling at the Student Loans website. This is used as a tool to ensure that you know your loan obligations and your remaining eligibility.

**If you are a first-time borrower on or after July 1, 2013, there is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized loans. This limit is 150% of the length of your current program of study. For example: if you are enrolled in a 2 year associate degree program, the maximum period that you can receive Direct Subsidized loans is 3 years at full time status or the equivalent. For more information, see “Is there a time limit on how long I can receive loans?"

Notes:

  • Your eligibility for the Federal Direct Loan program may vary based on your individual circumstances.
  • To view federal annual and aggregate loan limits for student in their third-year and beyond or for graduate or professional degrees visit the Student Aid website.
  • Once a loan limit is reached, you are no longer eligible to receive additional loans at Madison College or any other school, regardless of the degree.
  • If you repay some or all of the loans, you would then be able to borrow up the aggregate loan limit again.

Questions? Visit askMadisonCollege to view frequently asked Financial Aid questions, submit a Financial Aid Category question, access the Financial Aid Tutorials for step-by-step instructions on related processes, or contact Madison College Financial Aid at (608) 246-6170.