Student loan consolidation and stafford loan limits

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

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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,
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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: ... 3Jun14.pdf
Student Advocate, The Student Loan Network

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