Student Loan Limits: How Much Can You Borrow?

How Much Can You Borrow in Student Loans

BIG Ideas:

  • Federal loans are loans from the government, while private loans are loans offered by private institutions like banks, credit unions, and non-profits.
  • Federal student loan limits depend on several factors, including the year the student is in and whether the loan is unsubsidized or subsidized.
  • Private student loan limits vary by lender.

A brighter future. New skills and experiences. Independence. There are so many things to love about college. But if you’re a student or parent who must pay for it, there’s something you might not love: the cost.

According to the Education Data Initiative, the average cost of college has more than doubled. With the annual average cost per year already over $27,000 for in-state public school students and nearly $59,000 for private schools, it’s hard even to fathom how to keep up with the cost.

The good news is that with federal aid, grants, and scholarships (aka FREE MONEY!), you can bring down some of the cost. However, there will still likely be a gap in how much you get in federal aid, scholarships and grants and how much school costs. That’s where student loans from the government and private lenders come in.

If you know you need loans to pay for college, you may wonder: How much can you borrow in student loans? Well, that depends on the type of loan (federal vs. private student loans).

Let’s begin by looking at the student loan limits for federal student loans.

Federal Student Loan Limits

How much you can borrow in student loans from the government depends on a few factors, including:

  • The year the student is in.
  • The type of federal loan. For example, is the loan a direct unsubsidized loan (where the student is responsible for the interest that accrues while in school) or a direct subsidized loan (where the government pays the interest)?
  • Whether the student is a dependent or independent for tax purposes.
  • If the student or parents qualify for a PLUS loan.

You can get specific loan limit details on the Federal Student Aid website, but here are some general guidelines about aggregate limits:

  • Dependent students whose parents qualify for a PLUS loan: Can borrow $31,000 in aggregate with no more than $23,000 in subsidized loans.
  • Dependent undergraduates (whose parents can’t get a PLUS loan) and independent undergrad students: Can borrow up to $57,500 with no more than $23,000 in subsidized loans.
  • Graduate students: Can borrow up to $138,500 with no more than $65,500 in subsidized loans. The graduate aggregate limit includes all federal loans, including undergrad loans.

Private Loan Limits

Private loan rates, terms, and borrowing amounts vary significantly from lender to lender, but, in general, you can borrow up to the cost of attendance minus other financial aid to manage the costs of tuition, fees, and living expenses.

Keep in mind, though, that, unlike federal loans that are based on need, private student loans are based on your credit and income. So, to qualify and get the best rates, you must have good credit and income or get a strong co-signer. Learn more about how to choose a co-signer.

Brazos Can Help You Afford The Cost of College

For more than 40 years, Brazos Higher Education has been helping make education more affordable for students. As a Texas non-profit, we offer great rates and no fees on private student loans. Contact us to learn more.