“How much can I take out in student loans?”
It’s a common question.
Whether you’re heading to college for the first time or are nearly finished with your degree, you’ll likely need to use student loans to cover some of the cost. According to The College Board, the total cost of attendance for a single year averages nearly $25,000 at public schools, and nearly $60,000 for private schools.
Federal loans can be a good starting point, but there are limits on how much you can borrow. Depending on your year in school and the type of federal loan you’re eligible for, federal loans may not be enough to cover the full cost of your education. In that case, you may need private student loans or other forms of aid to cover the gap.
Federal Student Loan Limits
Typically, federal loans are a useful tool if you need to borrow money for college. Most federal loans don’t require credit checks, and interest rates are generally lower than what you’d get with private student loans.
To apply for federal student loans, you have to fill out the Free Application for Federal Student Aid (FAFSA). Your school’s financial aid office will determine how much you can borrow based on your FAFSA application. However, the government has instituted strict borrowing limits on how much you can borrow.
The student loan limits are based on your dependency status — dependent or independent — your year in school and federal loan limits.
[Important: Current loan limits are expiring; with the passing of President Trump’s One Big Beautiful Bill, there are new caps and limits on federal loans. Those changes will go into effect on loans disbursed on or after July 1, 2026.]
Subsidized versus Unsubsidized Student Loans
If you’ve researched federal student loans, you might’ve noticed both Direct Subsidized and Direct Unsubsidized Loans are available. While both can help you pay for school, they’re not options for everyone.
And it’s important to understand the difference between subsidized and unsubsidized loans if you’re completing the FAFSA. Subsidized Loans are only available to undergraduate students. Reserved for borrowers with significant financial need, these loans don’t accrue interest while you’re in school.
Unsubsidized loans are available for both undergraduate and graduate students. They’re often easier to qualify for than subsidized loans, but they do accrue interest while you’re in school.
Undergraduate Federal Subsidized and Unsubsidized Loan Limits
How much can you take out in federal loans? The maximum depends on your year and dependency status. If your parents support you, you’re considered a dependent student. You might be considered an independent student if you’re over 24, a military veteran, married, or financially support yourself.
Here’s a look at undergraduate federal loan limits for dependent vs. independent students:
| Year | Dependent Student Loan Maximum Amount | Independent Student Loan Maximum Amount |
| First | $5,500 (no more than $3,500 can be subsidized) | $9,500 (no more than $3,500 can be subsidized) |
| Second | $6,500 (no more than $4,500 can be subsidized) | $10,500 (no more than $4,500 can be subsidized) |
| Third year and up | $7,500 (no more than $5,500 can be subsidized) | $12,500 (no more than $5,500 can be subsidized) |
| Aggregate Amount | $31,000 (no more than $23,000 subsidized) | $57,500 (no more than $23,000 subsidized) |
Graduate Federal Subsidized and Unsubsidized Student Loan Limits
Dependency status isn’t a factor for graduate students; instead, students are independent for the purposes of financial aid, regardless of whether they have parental support. Graduate students can use Direct Unsubsidized Loans for school; they can borrow up to $20,500 per year. There is an aggregate limit of $138,500 (no more than $65,500 can be subsidized), and that number is inclusive of all federal undergraduate loans.
Graduate PLUS Loan Limits
Another option for graduate or professional students is Grad PLUS Loans. They have higher interest rates than Direct Unsubsidized Loans, but they don’t have annual or aggregate limits, so you can borrow up to 100% of the total cost of attendance.
However, the OBBB made significant changes to the federal student loan system. Grad PLUS Loans will no longer be available to new borrowers; for loans needed on or after July 1, 2026, you won’t be able to take out Grad PLUS Loans. The only option for graduate or professional students will be Direct Unsubsidized Loans.
Parent PLUS Loan Limits
Parents of undergraduate students in college can use Parent PLUS Loans to pay for their child’s education. Parent PLUS Loans, like Grad PLUS Loans, have the highest interest rate of any federal loan, but they previously didn’t have annual or lifetime borrowing limits. Parents could borrow up to 100% of the total cost of attendance.
For loans disbursed on or after July 1, 2026, new limits will apply. The new limit is $20,000 per year, per student. There is an annual or aggregate lifetime limit of $65,000.
Learn More: What Parents of College Students Need to Know About the OBBB
What Happens If You Hit Federal Loan Limits?
Suppose you’ve reached the annual or aggregate maximums for Federal Subsidized and Unsubsidized Loans. In that case, PLUS Loans may be an option if you are a graduate student or if your parents are willing to borrow on your behalf. If PLUS Loans aren’t an option and you can’t afford to pay for college on your own, consider these other options to cover your expenses:
- Look for external scholarships and grants: There are thousands of scholarships and grants offered by companies, non-profit organizations, and individuals. Look for scholarships on sites like The College Board’s Scholarship Search tool and FastWeb.
- Contact the financial aid office: If you didn’t receive enough financial aid to pay for the complete cost of attendance at your school, contact the financial aid office. You may be able to appeal their financial aid decision and receive more institutional scholarships or grants.
- Look into work-study options: The financial aid office may also be able to connect you with a work-study program. With federal work-study, you get a part-time job related to your major. You can use your earnings to pay for a portion of your expenses.
- Find part-time work: You could also look for a part-time job on- or off-campus if you can’t find a work-study program. Working part-time may help you pay a portion of your costs.
- Apply for private student loans: If you’ve exhausted other financial aid options, private student loans can be a useful resource. You can borrow enough to cover the remaining costs, and you can choose a loan term that fits your goals.
Private Student Loan Limits
Private student loans may also be an option if federal student loans won’t cover the entire cost of school. Private student loans are typically provided by banks, credit unions, and other financial institutions.
The amount you can borrow varies by the lending institution, and you may need to meet certain criteria in order to qualify for a loan. For instance, you might need to meet income requirements or have good to excellent credit. If you haven’t established a solid credit history yet, you may need a co-signer with good credit.
Rates, terms, and borrowing limits vary by lender, but you can usually use private loans to cover up to the total cost of attendance.
How Much Should You Borrow in Student Loans?
Everyone’s circumstances and goals are different, so there’s no one-size-fits-all answer regarding how much you should borrow in student loans. As you research your options, consider the bigger picture and consider factors like employability, earning potential, and overall life goals before borrowing a large amount in student loans. Doing so could help you avoid overwhelming student loan debt.
If you’re looking for private student loans, including undergraduate, graduate, and parent student loans for college, consider applying for a loan from ELFI. You can use ELFI’s Find My Rate tool to get a rate quote within minutes — without affecting your credit score.
