- Student loans can help you cover the costs of higher education — but they aren't bottomless.
- Federal student loans are offered by the U.S. government and come with strict limits.
- Both federal and private student loans have limits, though these vary based a variety of factors.
Federal student loan limits
Annual limits
For dependent students who have the financial support of their parents and have included those details on their FAFSA application, the annual limits range from $5,500 to $7,500, depending on how long you've been in school. For independent students without that financial support, it's much higher at $9,500 to $20,500.
In total, dependent students can borrow up to $31,000 across their educational tenure, while independent ones can borrow up to $57,500. Graduate and professional students can borrow nearly $140,000. There are also different limits for subsidized vs. unsubsidized loans. For graduate students, the limit can be up to $20,500 per year.
Aggregate limits (total for all years)
The aggregate limit for dependent students is $31,000. For independent students, it's $57,500, whereas the limit for graduate students is $138,500 — this includes undergrad loans as well.
Private student loan limits
No standard limits
Depending on your school's costs and your budget, you may need to take out private student loans at some point in your education. These typically have larger limits than federal loans do, but "most won't allow you to borrow more than the college's cost of attendance, minus financial aid," says Derenda King, a student loan advisor at Student Loan Planner.
Since private student loans tend to have higher interest rates than federal ones — and variable rates, which can increase over time — it's important to only borrow what you need. You will also need to take your credit into account, as lenders consider this when gauging eligibility and in setting your interest rate.
Creditworthiness matters
Private student loans, as well as Parent PLUS loans, require a credit check. If your credit history has blemishes, you may need to bring in an endorser — another party who agrees to repay the loan if you can't.
Factors affecting your borrowing capacity
Dependency status
Independent students who do not have the financial support of their parents or guardians are eligible for higher loan amounts. They're eligible for up to $57,500 in federal student loans across their educational tenure. Dependent students have lower federal loan limits.
Year in school
Your loan limits increase for each year of undergraduate study, and increase even higher if you enter into a graduate program.
Loan type
Depending on the loan you take out, the limit can change. Subsidized loans have lower annual limits than unsubsidized loans.
Cost of attendance
This is the total cost of your specific school, including tuition, fees, and living expenses. If you need more than your federal student loan limit allows, you have other options. First, your parents could explore a PLUS loan — a type of federal student loan for parents. With these loans, you can borrow up to the total cost of attendance at your school, minus any financial aid you're already receiving.
FAQs
Yes, you can borrow more than federal loan limits through private student loans, but these often have higher interest rates and stricter terms.
If you reach your aggregate loan limit, you won't be able to borrow more federal student loans. Consider alternative funding options like scholarships, grants, or private loans.
You usual cannot increase your federal loan limit, unless your parents are denied a PLUS loan.
To find out your loan limits, check your financial aid award letter or contact your school's financial aid office.
