Student Loan Limits: How Much Can You Borrow?

While student loans are a lifeline for many students who need them to afford college, there’s a limit to how much you can borrow.

For federal student loans, your limit depends on whether you can be claimed as a dependent, your current year in school and the type of loan you take out. Based on these criteria, undergraduates can borrow a maximum of $9,500 to $12,500 annually and $57,500 total. Graduate students can borrow up to $20,500 annually and $138,500 total, which includes undergraduate loans.

For private student loans, limits vary by lender, but you may be able to borrow up to your entire cost of attendance, excluding other financial aid.

But borrowing the maximum amount available to you might not be the best choice. Let’s learn more about how much you can—and how much you should—borrow to pay for school.

How Much Should You Borrow In Student Loans?

You should borrow as much as you need and not necessarily all that lenders make available to you. The more you borrow now, the more student loan debt you’ll have to pay off later—with interest.

To determine how much you should borrow in student loans, calculate your cost of attendance. This includes:

• Tuition and fees (like transportation and athletic fees)
• Room and board or other living expenses
• Books
• Supplies and technology costs (like a computer, tablet and calculator)
• Loan fees
• Transportation

If your cost of attendance is less than what you’d get from the maximum federal student loan limit, borrow only what you need.

If your cost of attendance exceeds what you’ll receive from federal student loans, you may need to tap into other resources. This includes private student loans or borrowing money from friends and family. If a certain college is just too much of a stretch financially, consider less expensive schools. Use resources like colleges’ net price calculators on their websites to determine how much they’ll cost you after taking into account grants and scholarships you could receive.

You also can set how much you borrow based on your anticipated future earnings, which might be a bit harder to estimate. But if you know the starting salary of your future post-graduate position, that can help you determine what you can afford when the time comes to repay your student loans. Some experts recommend limiting your total student loan borrowing to the amount you plan to earn your first year out of school.

Federal Student Loan Limits

Federal student loan limits adjust based on whether your parents or guardians can claim you as a dependent, the type of loan you’ll use and what year you’re in school. For instance, both independent and dependent first-year students can borrow $3,500 in subsidized loans. But dependent students are limited to $2,000 in unsubsidized loans, while independent students can borrow up to $6,000 in unsubsidized loans.

Subsidized vs. Unsubsidized Loans

Undergraduate students loans are classified as either subsidized or unsubsidized. Here’s how they differ:

• Subsidized loans don’t accrue interest when you’re enrolled in school at least part-time, during periods of deferment and during your six-month grace period after you leave school. When you start to repay your loans, you’ll be responsible for your loan plus the interest that starts accruing after you leave school.
• Unsubsidized loans accrue interest even while you’re in school. The good news is that you don’t have to start making payments until your grace period ends. The bad news is that your payments will be higher compared to subsidized loans since your interest started accruing immediately upon disbursement, not graduation.

Total subsidized and unsubsidized loan limits over the course of your entire education include:

• Dependent: $31,000 ($23,000 subsidized, $7,000 unsubsidized)
• Independent: $57,500 ($23,000 subsidized, $34,500 unsubsidized)

Both dependent and independent students can borrow $23,000 in subsidized loans, but unsubsidized loans allow independent students to borrow more.

Graduate Federal Student Loan Limits

If you’re a graduate or professional student, you’re not given the option to be a dependent student for purposes of federal financial aid. All graduate students are considered independent and aren’t eligible for subsidized loans.

Instead, graduate students can borrow as much as $20,500 in unsubsidized loans annually and $138,500 total, including undergraduate loans.

PLUS Loan Limits

PLUS loans are for parents borrowing on behalf of their dependent children or graduate and professional students.

For PLUS Loans, the maximum amount you can borrow is the cost of attendance minus any other funding you receive. Other types of funding include grants, scholarships, subsidized and unsubsidized loans. The cost of attendance is set by the school.

What Happens If You Hit Federal Loan Limits?

If your cost of attendance exceeds what you can borrow in federal student loans, you may not have enough cash on hand to cover the extra costs. If you’re worried about not having enough money to pay for school, you have a few options, including:

Working part-time. Find a job that lets you work non-traditional hours so you can pay for school. You can look on- or off-campus, depending on your living situation and transportation options. Consider a side-hustle—like delivering groceries, tutoring or freelancing—to cover your extra schooling costs.

Requesting payment assistance. Many schools require payment in full, whether that comes from your lender or you. If you can’t pay your outstanding bill, talk to your school’s financial aid office about a payment plan, like making monthly payments instead of one lump-sum payment. Also inquire about emergency grants or interest-free loans, which vary by school but might be available based on your need.

Switching schools. Cost of attendance varies by each school. Since every institution has different service fees, you might pay more at a private or big-name school compared to community colleges, which tend to have fewer fees. If you can, consider attending local colleges for the first couple years and then transferring to your school of choice to complete your bachelor’s degree.

Using private student loans. If you’ve exhausted all your federal borrowing options, you may want to look into using private student loans. These are available through banks, credit unions and online lenders and usually require a credit check for approval. If you don’t have a strong enough credit standing on your own, you may need to enlist the help of a co-signer—like a parent—to help you qualify or get a lower interest rate. How much you can borrow is partly based on your credit score.

Tapping into family resources. If you can, ask relatives if they can pitch in to help pay for school. This includes getting a loan from a loved one or having them make tuition payments on your behalf. While not every family can afford the extra cost, you may have some relatives that can give you a little extra money so you can avoid borrowing more in loans.

Private Student Loan Limits

Since private student loans are offered by many different lenders, there is no general limit to how much you can borrow. Banks, credit unions and online lenders all have their own criteria. This means you’ll need to compare lenders, interest rates and repayment terms before applying for a private student loan.

Your private student loan limit is based on your creditworthiness and sometimes your chosen degree. Many lenders will approve you for your entire cost of attendance, while others have a lifetime loan amount you can borrow, similar to federal student loan limits.