Student loan consolidation and stafford loan limits

Discuss consolidating either federal or private loans, for undergraduates or graduates.

Moderator: Financial Aid Guru

Student loan consolidation and stafford loan limits

Postby scottswife2001 » Wed Jan 16, 2013 4:00 pm

I was wondering if I consolidated my loans, including the stafford loans, then does this re-set my stafford limit that I can receive in the future? I have been looking online for an answer to this question and haven't been able to find one.

Thanks in advance,
Jennie
scottswife2001
New
 
Posts: 1
Joined: Wed Jan 16, 2013 3:56 pm

Re: Student loan consolidation and stafford loan limits

Postby Aid Whiz » Tue Feb 05, 2013 12:10 pm

Hi Jennie,

Consolidation does not reset any Stafford Loan limits. However, according to the Department of Education regulations:

A borrower who has reached his or her aggregate borrowing limit may not receive additional loans. Once the loans are repaid, in full or in part, the borrower may apply for additional Stafford Loans.


So, once you pay off some of your balance, you will regain eligibility for the same amount.

See page 116 of the Federal Student Aid Handbook for more information on this: http://ifap.ed.gov/fsahandbook/attachme ... 3Jun14.pdf
Student Advocate, The Student Loan Network

Check out the Student Loan Network Official Blog for the latest in financial aid news and information!

Follow us on Twitter for helpful tips and tricks for financial aid!
Aid Whiz
Veteran of Financial Aid
 
Posts: 626
Joined: Wed Mar 30, 2011 8:25 am


Return to Loan Consolidation

Who is online

Users browsing this forum: No registered users and 1 guest

cron