Student Loan Limits: How Much You Can Borrow in Federal and Private Student Loans

According to the College Board, the average annual cost of a private four-year college is now $32,410. So, if you really want to attend a private university, on average you’ll need to be prepared to pay over $129,000 for your education.

And that’s if you don’t plan to attend graduate school. For instance, consider the extra cost that medical students deal with. According to the Association of American Medical Colleges, the average annual cost for an in-state public medical school is another $37,000 per year.

How do you pay for all this? The simple answer may seem to be, “Well, I’ll just take out student loans.” But, contrary to what some may think, student loans aren’t just blank checks. There are limits to how much you can borrow, especially when it comes to federal student loans.

So the question many students want answered is, “How much in student loans can I get?” We’ll provide the answers to how much you can borrow in this guide. Let’s take a look at the student loan limits you’ll face through each stage of your college career.

Federal vs. private student loan borrowing strategy

Federal student loans come with many built-in benefits that private student loans can’t match. For example, federal student loan borrowers are eligible to join an Income-Driven Repayment plan. They’re also eligible for federal forgiveness programs like Public Service Loan Forgiveness.

Another perk of federal student loans is that you can typically take them out on your own without a cosigner, regardless of your credit standing. But one of the few downsides to federal student loans is that their student loan limits can be more restrictive than private student loans.

In most cases, you should max out your federal student loans first before moving to private student loans. Below, we’ll take a look at the student loan limits for both undergraduate and graduate students.

Related: How to apply for student loans the smart way

Undergraduate student loan limits

How many student loans can you get as an undergraduate student? That will mostly depend on your answers to two questions: Are you a dependent or independent student? And, what year of school are you in? Here’s how that information can affect your borrowing options.

Federal student loan limits

There are two main types of federal student loans for undergraduate students: Direct Subsidized and Direct Unsubsidized loans. Both types come with an interest rate of 4.53% and are eligible for federal student loan benefits. But there are key differences:

• Direct Subsidized Loans: The government will pay your interest charges for you in some circumstances. To qualify, you’ll need to prove financial need.
• Direct Unsubsidized Loans: You’ll be responsible for all the interest charges yourself, but you can qualify for this loan type regardless of financial need.

Direct Subsidized and Direct Unsubsidized loans also have different student loan limits. As you can see in the table below, the federal student loan limits on Direct Subsidized loans are much lower for each academic year. Overall loan limits are the total amount of federal student loans a borrower can take out per year. This combines subsidized and subsidized student loans.

Undergraduate Annual Student Loan Limits

Academic year	Undergrad loan limit: Dependent students	Undergrad loan limit: Independent students
First	Subsidized: $3,500 Overall: $5,500	Subsidized: $3,500 Overall: $9,500
Second	Subsidized: $4,500 Overall: $6,500	Subsidized: $4,500 Overall: $10,500
Third+	Subsidized: $5,500 Overall: $7,500	Subsidized: $5,500 Overall: $12,500
Aggregate loan amount	Subsidized: $23,000 Overall: $31,000	Subsidized: $23,000 Overall: $57,500

For dependent students (most students under age 24), your four-year federal student loan limit ($31,000) is lower than the average cost of one year at a private university. That’s a recipe for a funding deficit unless you’re able to receive financial assistance from other places.

Independent students have a bit more wiggle room, with up to $57,500 of federal student loans available. But if you attend a private college or even an out-of-state public college, you could still easily max out your federal student loan limits.

Private student loan limits

If you’ve hit your federal student loan borrowing cap, private student loans could help bridge the gap. In most cases, private student loans can be borrowed up to the cost of attendance. And your “cost of attendance” can include books, supplies and living expenses in addition to tuition and fees.

Most private lenders will have aggregate loan limits. But these are usually very high, ranging from $150,000 to $500,000.

In most cases, you shouldn’t need to worry about the aggregate limit, especially if you maxed out your federal funding before moving to private loans.

Graduate loan limits

Graduate loans are a bit different when it comes to student loans, especially in regards to your federal student loan options. Here’s what you need to know.

Stafford student loan limits for graduate school

Direct Subsidized loans are unavailable to graduate students, but you’re still able to take out Direct Unsubsidized loans of up to $20,500 per year.

Graduate students are also subject to aggregate student loan limits of $65,000 in subsidized loans and $138,500 overall. And those numbers include whatever federal student loans you took out during your undergrad program.

Health Professions Stafford Loan Limits Are Higher

For students in medical, dental school, and other health professions, the borrowing limit for Stafford loans is higher.

For example, for medical and dental school, the per year maximum for Stafford loans is $40,500 and the aggregate max is $224,000.

If you’ve already used up your available Direct Unsubsidized loans for the year — or you’ve hit the aggregate cap — you can still take out Grad PLUS loans.

Grad PLUS Loans Have No Limit

While they’re still federal student loans, Grad PLUS loans are unique in that they allow students to borrow up to the cost of attendance.

Grad PLUS loans are more expensive, however, with an interest rate of 7.08% and a loan disbursement fee of 4.236%. Plus, if you have an adverse credit history, you may not be able to obtain a Grad PLUS loan without a cosigner.

Private loan limits for graduate students

Due to the high interest rates and origination fees of Grad PLUS loans, private student loans may be an attractive alternative for grad students who have maxed out their Direct Unsubsidized loans.

As with undergraduate private student loans, you’ll typically be able to borrow up to the cost of attendance annually.

Some lenders may also have higher lifetime loan limits for graduate students than undergrads. And you may qualify for even higher aggregate limits if you’re pursuing a degree that’s known for being expensive, like medical, law or MBA programs.

Other ways to pay for college

In this guide, we’ve focused on figuring out, “How much student loan can I get?” But a better question to ask may instead be, “How can I minimize my student debt?”

Before you rush to take out student loans, look at all your “free money” options — money that you don’t have to pay back — first. Make sure to fill out your Free Application for Federal Student Aid to see if you qualify for federal aid or grants.

Second, use sites like Scholarships.com, FastWeb and the College Board (Big Future) to help find and apply for scholarships. And, finally, find a part-time job opportunity that is willing to work around your school schedule to help reduce student debt.

If you’re thinking about attending a graduate school or professional program that could put you in six figures of student debt, you may want to talk to one of our student loan advisors first. Book a pre-debt consultation today.