Student Loan Limits

Annual Loan Limits: BasicPrinciples

Annual loan limits are for an academic year, which is notalways tied to fixed calendar dates (unlike Pell, whichbases its annual limit on a July 1-June 30 award year).

For a term program, you may use either a ScheduledAcademic Year (usually Fall-Spring with a separatesummer session) or a “Borrower-based Academic Year” thatvaries from the student norm (such as Summer-Fall). Youmay use both the SAY and the BBAY at different timesduring the student’s enrollment.

For a non-term program, you may ONLY use aBorrower-based Academic Year.

The loan period does not have to match the academicyear.

If a loan period crosses between award years (June30/July1), you may use the EFC for either application yearto determine the student’s financial need.

The calendar period associated with the academicyear (and credit/clock hours for a nonterm program)must elapse before the borrower is eligible for a newannual loan limit.

The student’s maximum annual loan limit increases asthe student progresses to higher grade levels.

The student will become eligible for a higher loanamount if he/she progresses to the next grade levelduring the loan period.