Student Borrowing Limit for College

Hello, I'm currently trying to get a sense of my financial situation in college. What's the maximum amount that I, as a student, can borrow for college? Also, how does this differ between subsidized and unsubsidized loans? Thanks in advance!

Hi! The federal student loan limits work on a system that bases the maximum amount you can borrow on your year in school and whether you're a dependent or independent student.

For dependent undergraduate students, the aggregate limit for Direct Subsidized and Unsubsidized Loans is $31,000, of which no more than $23,000 may be in subsidized loans. Independent undergraduate students, or dependent students whose parents can't obtain a Direct PLUS loan, on the other hand, can borrow up to $57,500 total, with the same cap at $23,000 in subsidized loans.

As for graduate and professional students, they can borrow up to $138,500, with no more than $65,500 in subsidized loans.

These limits don't include the Parent PLUS and Grad PLUS loans, which allow you to borrow up to the cost of attendance (minus other financial aid).

In terms of the differences between subsidized and unsubsidized loans - a subsidized loan is a type of federal student loan that the U.S. Department of Education offers to students who demonstrate financial need, and the interest on these loans is paid by the government while you're enrolled and for six months after your enrollment. On the other hand, anyone, regardless of financial need, can apply for an unsubsidized loan, but the interest begins accruing as soon as the loan is disbursed and you would need to pay it at all times.

Do remember that while it's possible to borrow up to these limits, it's recommended to borrow only what you absolutely need to reduce the burden of loan repayments after graduation. It's a good practice to exhaust all other avenues like scholarships, grants, and work-study opportunities before taking loans. Make the best decision for you and your financial future.