The Unanswerable question...can lifetime limits reset

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The Unanswerable question...can lifetime limits reset

Postby reggad1588 » Tue Jun 08, 2010 10:29 am

I have a question that I have been completely unable to find an answer to concerning the lifetime limits on the Stafford Loans. If you have met the lifetime limit in the past but have paid off the loan amount in full, does the lifetime limit reset? I am going back to school for a second bachelors degree. I borrowed the lifetime limit for undergraduates on my first degree but have since paid off the loan in full. Do I now qualify for the maximum lifetime limit or does the amount I borrowed on my first degree still count against the limit even though it is paid off? Or put another way, does the lifetime limit only take into account outstanding loans? I have asked the financial aid office of two different universities and received completely opposite answers. One said my limit is now reset since I paid the first loan off and the other office said that is not the case. Does anyone know the answer?
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Re: The Unanswerable question...can lifetime limits reset

Postby ejacobs » Wed Jun 09, 2010 7:19 am

Hey there,

After doing some digging, my conclusion is that the limit does not reset. However, I was told by a customer service associate at the Department of Education that the financial aid office of your school supposedly is the one that tallies the aggregate loan number. It might be possible to have the number reduced or removed if you show proof of payoff.

Personally, I kind of doubt that explanation and think that the lifetime limit is likely a hard limit. One thing that might give you some leverage is the amount of aid available with different student statuses. For example, if you were considered a "dependent" student while you did your undergraduate program (were under 24, not homeless) and are 24 or older now, your lifetime limit should actually be $26,500 higher now. This might be a way to get some more money toward your education.
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