June 23, 2008

Do You Know the Answer?

Q. Can a graduate student receive a student loan if the National Student Loan Data System (NSLDS) reflects a flag that the student exceeds the undergraduate loan limit?

A. Even a graduate student can be flagged on NSLDS for exceeding an undergraduate aggregate loan limit. If you determine that the student did indeed receive more student loans than s/he was eligible for as an undergraduate, the over-borrowing must be resolved before any additional Title IV aid may be disbursed to the student, even if the total amount borrowed doesn’t exceed the aggregate limit for graduate students.

Sources:

• 2007-2008 Federal Student Aid Handbook, Volume 5, Chapter 1, pages 5-13 to 5-14
• Integrated Common Manual, Chapter 5, Subsection 5.5, page 12  
• NSLDS Newsletter #17, page 2