What Is the Maximum Amount of Student Loans?
There are limits to how much money you can borrow with student loans. The maximum student loan per year depends on how far along you are in school and whether your loans are federal or private.
Undergraduates are limited to $12,500 annually and $57,500 in total federal student loans. Graduate students are limited to $20,500 annually and can have a total student loan debt of $138,500. ( 1)
The lifetime student loan limit isn’t an indication of how much you should borrow. That amount of debt could financially cripple many people for years, depending on their future income. With careful planning, it’s possible for many students to get the education they need without borrowing nearly as much as the lifetime student loan limit.
How Much Can You Get in Student Loans?
Your loan limit depends on your status as a full-time or part-time college student, whether you are a dependent or not, and how far along you are in school.
Federal Student Loan Limit
Undergraduates can borrow a maximum of $5,500 to $12,500 in Direct Subsidized and Direct Unsubsidized Loans each year. Parents can borrow through a Direct PLUS Loan to help pay for their dependent undergraduate student’s education as well.
Graduate students can borrow a maximum of $20,500 in Direct Unsubsidized Loans each year. They can also borrow through the Direct PLUS Loan program. The maximum yearly Direct PLUS Loan amount for parents and graduate students is the total cost of attendance minus any other financial aid received by the student. (2 )
What Is the Maximum Student Loan Per Year?
Annual: how much you can borrow during each school year. Aggregate: how much you can borrow during your time in college and graduate school.
Cost of Attendance Limits on Student Loans
On top of the annual and aggregate student loan limits, your college sets its own guidelines on how much you can borrow based on its cost of attendance.
Your college’s financial aid office estimates the total educational cost of attending the school, including expenses like tuition, fees, books, room and board, and transportation for a given enrollment period.
Private Student Loan Limit
Private student loan limits are equal to the total cost of attendance minus financial aid, including federal student loans. Many private student loan providers limit undergraduate students to
If you work with a private lender, your school will certify the amount you can borrow. They’ll work with your lender to make sure that your total financial aid, including student loans, doesn’t exceed your cost of attendance minus other aid. ( 3)
What’s the Difference Between Direct Subsidized Loans and Direct Unsubsidized Loans?
Undergraduate students who demonstrate financial need may be eligible for Direct Subsidized Loans. The college determines the amount you can borrow, which can’t exceed the student’s financial need.
With a Direct Subsidized Loan, the federal government pays the interest while you are enrolled in school at least half time, as well as for the first six months after you graduate or stop attending school. They also cover interest payments if you choose to postpone your payment with a loan deferral.
Borrowers who received a Direct Subsidized Loan on or after , must pay interest that accrues during the six-month grace period after leaving school. Borrowers who choose not to make interest payments will see the interest added to their payday loans Maryland loan balance.
Direct Unsubsidized Loans are available to students, even if they can’t demonstrate financial need. The school determines the total amount of money a student can borrow, based on the total cost of attendance and other financial aid.