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Key takeaways
- Student loan borrowing limits for federal student loans are capped at $138,500 for grad students and between $31,000 and $57,500 for undergrad students.
- Many private student loan lenders will let you borrow more than $100,000 depending on how much your tuition costs.
- Just because you can borrow a certain amount doesn’t mean you should because you must pay back anything you borrow plus interest.
Loan limits for private student loans and federal student loans can vary depending on a number of factors, including your tuition cost, dependent status and other eligibility factors. Though you may qualify for the maximum loan amount, borrow only what you truly need. Tally up costs such as housing, tuition and dining expenses, and subtract from that the aid you’ve received to figure out the loan amount you may require.
Federal student loan limits
There are three types of federal student loans. Each loan type has its own loan limit, but the amount of federal student loans you can take out also depends on a few common factors.
The three types of federal student loans are:
- Direct Subsidized Loans: Need-based loans for undergraduate students that include some periods where the government covers interest costs. The yearly amount of aid can be up to $5,500, depending on your year.
- Direct Unsubsidized Loans: Loans for undergraduate, graduate and professional students where all interest costs are covered by the borrower. The yearly amount can be up to $20,500 minus any subsidized loans.
- Direct PLUS Loans: Loans for parents of undergraduate students and eligible graduate and professional students. The yearly amount can be up to the cost of attendance minus any other federal loan amounts.
Possible changes to federal state loans
President Trump’s “big beautiful bill” is currently being considered by the Senate. The bill includes several changes to federal student loans, including adjustments to only two repayment plan options, higher borrowing limits, and the elimination of subsidized student loans.
How your federal student loan amount is determined
Using standard federal student loan limits, the cost of attendance and your Free Application for Federal Student Aid (FAFSA) information, your school determines how much you’re eligible to borrow in federal student loans. The amount you can take out is based on:
- The cost of attendance
- Your year in school
- Your status as a dependent or independent student
Undergraduate federal loan limits
Your loan limit as an undergraduate depends on whether you are an dependent or independent student. You are considered a dependent if your parents financially support you. If you financially support yourself, you are considered independent. You may also be considered financially independent if you are over 24 years old, a military veteran or married.
Federal student loan limits for dependents are $5,500 to $7,500 each year, up to a lifetime limit of $31,000. Independent students can borrow $9,500 to $12,500 annually and up to $57,500 total. If you’re a dependent undergrad but your parents don’t qualify for a parent PLUS loan, you may be able to borrow up to the federal student loan limits for independent students.
Annual loan limits for dependent and independent undergraduates
| Year in school | Annual loan limit (dependent undergraduate student) | Annual loan limit (independent undergraduate student) |
|---|---|---|
| Year 1 | $5,500 (up to $3,500 may be subsidized) | $9,500 (up to $3,500 may be subsidized) |
| Year 2 | $6,500 (up to $4,500 may be subsidized) | $10,500 (up to $4,500 may be subsidized) |
| Year 3 and beyond | $7,500 (up to $5,500 may be subsidized) | $12,500 (up to $5,500 may be subsidized) |
| Lifetime maximum limit | $31,000 (up to $23,000 may be subsidized) | $57,500 (up to $23,000 may be subsidized) |
Graduate federal loan limits
If you are a student working towards a graduate or professional degree, you can take out Direct Unsubsidized Loans as well as Direct PLUS Loans. Grad students are not eligible for subsidized loans.
Graduate and professional students have a total federal loan limit of $138,500, including any loan amounts used for undergraduate study. You can borrow up to $20,500 per year in Direct Subsidized Loans for grad school. Any extra loan funds needed to cover the cost of attendance may be covered with a grad PLUS Loan.
Loan limits for federal graduate loans
| Type of loan | Loan limit |
|---|---|
| Direct Unsubsidized Loan | $20,500 annually (lifetime max of $138,500, including federal undergraduate loans) |
| Grad PLUS loan | Up to the cost of attendance, minus any other financial aid received |
Private student loan limits
Private student loans are usually best to take out when you’ve maxed out your federal financial aid. They require hard credit checks for approval and lack benefits like loan forgiveness opportunities and income-driven repayment plans.
While many lenders will allow you to borrow up to the total cost of attendance, the total amount you can borrow will vary based on the lender, your major, your year in school, your credit score and whether or not you have a cosigner.
Below are examples of student loan limits among some private lenders:
| Lender | Loan limit |
|---|---|
| Ascent | $200,000 aggregate for undergraduate, $400,000 for graduate |
| Citizens Bank | $225,000 aggregate |
| College Ave | 100% total cost of attendance ($150,000 for some degrees) |
| Custom Choice | Up to $99,999 annually; $180,000 aggregate |
| Earnest | 100% total cost of attendance |
| Elfi | 100% total cost of attendance |
| Sallie Mae | 100% total cost of attendance |
| SoFi | 100% total cost of attendance |
How much should you borrow in student loans?
The amount you should borrow in student loans depends on how much you need to pay for college. It’s a good idea to consider all your payment options for college before taking out loans. When you know how much you need to pay for college, explore federal student loan options first, as they come with more benefits than private student loans.
As a rule of thumb, try to keep your monthly student loan payment around 10 percent of your projected after-tax income for your first year out of school. For example, if your take-home pay is $2,800 a month, then your student loan payments shouldn’t exceed $280.
The Bureau of Labor Statistics may help you estimate your postgraduation salary, and you can use a student loan calculator to estimate your loan payment based on the loan amount and interest rate.
Bankrate’s take:
You may not want to borrow up to the borrowing limits just because you can. You’ll need to pay back any money you borrow, plus interest and fees.
What to do if you hit your federal loan limit
If you’ve reached your limit on student loans, there are still ways to reduce the costs to make a college education financially easier:
- Attend an in-state school: If you’re looking into an out-of-state school, consider going to a cheaper in-state one.
- Explore online programs: Enrolling in an online program could help you save money on housing and gas.
- Federal work-study programs: Applying for a work-study job can help you reduce the funding gap and rely less on additional loans.
- Live off-campus or with roommates: Instead of living in the dorms on campus, consider living with a roommate off-campus to save money on living expenses.
- Rent or buy used textbooks: Purchasing used textbooks instead of brand-new ones can help you save money.
- Scholarships and grants: Unlike student loans, you don’t have to repay grants or scholarships.
- Work a part-time job: If you have some free time, consider picking up a part-time job to help cover some school expenses, even online tutoring.
Bottom line
Whether you borrow federal student loans, private student loans or both, you will need to pay back whichever you borrow. In addition, you’ll pay any accrued interest and loan fees associated with your student loans. Consider all your options as you decide how much money to borrow to pay for college.
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