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Maximum allowed to borrow for undergraduate?

Started by KYLADY723, March 18, 2022, 02:24:34 pm

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KYLADY723

I have been out of school since 2006. I was in default, then consolidated in 2009. In default again in 2010.  :-[  My wages were garnished from 2010 - 2017. I went through the loan rehabilitation program in 2017, came out of default and began making payments. 

At the time I consolidated in 2017, I guess I was just overwhelmed by the amount of debt, the default and wage garnishment that I was just grateful to be out of default and able to repair my credit. I never really looked that closely at the details of all of my loans and disbursements.

I am now trying to apply for the PSLF program. While gathering my information, I began looking at all of the loans (pre-consolidation) that were disbursed while I was at school. They do not add up to the total principal I consolidated. Also, the total that is shown that I borrowed is $65,765 in unsubsidized loans and $28,485 in subsidized loans.  The maximum amount allowed to borrow for undergraduate degrees is $57,000. How was I  approved to borrow almost $93,000?  Nothing is adding up. As embarrassed as I am to admit (13 years after signing off on a loan consolidation) I think there was an mistake made somewhere. Is it even possible for someone to borrow that much for an undergraduate degree?

TheCollegeInvestor

You didn't borrow that much - what likely happened is when you were in default, collection fees and costs were continually added to the loan. Then, when you got out, everything was capitalized (meaning it was added to the principal balance). Sounds like this cycle happened twice.