Although student loans are helpful in covering the cost of your college education, there are limits in the amount you can borrow. Thankfully, there are other options you can explore, such as PLUS loans and private student loans.
Given these options, you now may be wondering how much can you get in student loans. Keep on reading to find out!
Federal student loan borrowing limits depend on whether you are supported by your parents or not, your year in school, and the type of loan. The three types of federal student loans are Direct subsidized, Direct unsubsidized, and Direct PLUS.
Direct subsidized loans are solely available to undergraduates. Meanwhile, Direct unsubsidized loans are for undergraduates and graduate students. Both loans have annual and aggregate loan limits.
If your parents support you financially, you are considered a dependent student. Your parents’ finances will affect your eligibility for subsidized loans.
As a dependent undergraduate student, you can take out $5,500 to $7,500 in federal student loans every year you are in school. If your parents do qualify, your total borrowing in subsidized loans can be up to $23,000.
If your parents cannot qualify for a Direct PLUS loan, you may qualify for an additional subsidized loan. The federal borrowing limits for independent undergraduates also apply.
If you have hit your limit on student loans, you can turn to PLUS loans. These loans are available to parents of dependent undergraduates and graduate students.
Federal Direct PLUS loans do not have a cap on the student loan amount you can borrow. However, you cannot exceed the cost of attendance minus other financial aid.
The school’s cost of attendance includes tuition and fees, books, supplies and equipment, room and board, and transportation.
PLUS loans do not require a specific credit score. You just need to pass a basic credit check.
Private student loan limits depend on your ability to repay your loan. Lenders look at the required amount of your monthly income to repay plus other existing obligations.
Since undergrad students do not have a history of earnings and credit, most private student loans are cosigned by a family member or friend.
Additionally, private student lenders will have a maximum student loan limit. The amount you borrow cannot be more than your school’s cost of attendance.