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FAQ: What steps should schools take when borrowers have exceeded their annual or aggregate Stafford Loan limits?

December 16, 2011

As a service to you, Nelnet would like to share a current and recurring topic that we are noticing in calls to our School Service Center. 

When viewing NSLDS, schools may see that some borrowers have exceeded annual or aggregate loan maximums.  To resolve this, schools or borrowers need to work directly with the servicer of that borrower’s effected loan.

Why is it critical to work with servicers when aggregate limits are exceeded?  Federal regulations state that effected borrowers cannot receive Title IV aid until this overage is resolved. 

Basically, there are three options for resolution:

  • The borrower can authorize the school to adjust the excess loan amount or reallocate funds between a subsidized Stafford loan and an unsubsidized Stafford loan for which the borrower is eligible.
  • The borrower can repay in full the excess loan amount.
  • The borrower can sign an agreement acknowledging the debt and affirming his or her intention to repay the excess amount as part of the normal repayment process. This is called a REAFFIRMATION LETTER.*

* Please note: A consolidation can also be considered a satisfactory repayment arrangement and acts the same as a reaffirmation letter. If the loan(s) that caused the overage were included in a consolidation, no action is needed to resolve the overage.   

For guidance on how to resolve the overage or to obtain the correct version of the Reaffirmation Letter, the school or borrower can contact the servicer directly. 

Schools can reach Nelnet’s School Service Center at 1.866.4NELNET (1.866.463.5638) or

Borrowers can reach Nelnet Customer Service at 1.888.486.4722,, or

Anne Del Plato, Eastern Reginal Director, Nelnet Partner Solutions

One Comment leave one →
  1. December 16, 2011 11:47 am

    I have had this situation happen three times in the past six months. Each time, the borrower went over his/her aggregate maximum subsidized Federal loan, has been in school so he/she cannot consolidate, and can only remediate the overage by getting the prior school to reallocate or by paying the overage him/herself. Unfortunately, the two servicers in question (not NelNet) told the borrowers that they could not make a payment on their loans and/or had to have documentation from us showing that they were over on their sub loans.

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