Student loans are often necessary to fund your degree, but you may be restricted in how much you can borrow. It’s important to research student loan limits before you borrow so you can make an informed plan and cover all of your costs.
Most federal student loans have annual and lifetime limits, while many private student loan lenders allow you to borrow up to the cost of attendance. See how much you can borrow with each type of student loan and what amount you can safely repay.
Federal student loan limits depend on the kind of loan you borrow, as well as your year in school and whether you’re a dependent or independent student.
When you submit your Free Application for Federal Student Aid (FAFSA), you’ll input info that determines your status as an independent or dependent. All graduate or professional students are considered independent. Most undergrads are considered dependent, unless they are:
The table below shows the annual and lifetime limits for Direct Subsidized and Unsubsidized Loans.
| Year | Dependent student | Independent student* |
|---|---|---|
| 1st year undergrad | $5,500 annually (up to $3,500 can be subsidized) | $9,500 annually (up to $3,500 can be subsidized) |
| 2nd year undergrad | $6,500 annually (up to $4,500 can be subsidized) | $10,500 annually (up to $4,500 can be subsidized) |
| 3rd+ year undergrad | $7,500 annually (up to $5,500 can be subsidized) | $12,500 annually (up to $5,500 can be subsidized) |
| Graduate or professional student | N/A | $20,500 annually |
| Lifetime limit | $31,000 (up to $23,000 can be subsidized) | $57,500 for undergrads (up to $23,000 can be subsidized) $138,500 for graduate or professional students, including undergrad loans (up to $65,500 can be subsidized) |
Direct PLUS Loans are available to graduate students and parents of dependent undergraduates, as long as the borrower doesn’t have adverse credit. The maximum loan amount is the school-certified cost of attendance, minus any other financial aid available.
Related: Federal student loans: 2023 guide
Private student loan limits can be more difficult to determine because they vary by lender and the degree program you’re enrolled in.
With many private lenders, you can borrow up to the school-certified cost of attendance annually, minus any other sources of financial aid you receive. Lifetime limits can vary depending on both the lender and the type of degree you’re earning.
Degrees that are more expensive (and typically come with higher salaries) may have higher limits. For example, if you borrow from Citizens, you would be subject to the following lifetime limits:
Other lenders may have lower aggregate limits, or even annual limits. Most lenders also have minimum borrowing requirements. For example, you might not be allowed to borrow less than $1,000 or $5,000, depending on the lender.
Related: Graduate school loan limits, and how to minimize debt
Deciding how much to borrow can be complicated, as you may not need as much as lenders offer you. Remember, every dollar you borrow has to be paid back with interest, so taking on unnecessary debt will affect your future finances.
A good rule of thumb is to keep your total student loan balance equal to or below your estimated starting salary after leaving school. This can help ensure that your loan payments are affordable once you start repaying your debt.
It’s also wise to borrow the minimum amount needed to cover your tuition and pay for reasonable costs of living. Using loan money for unnecessary purchases such as travel, concert tickets, or luxury items could leave you struggling to become debt-free later in life.
To help decide how much you can — and should -— borrow, use the Bureau of Labor Statistics database to estimate your future earning capacity and the financial aid section of your school’s website to review the estimated cost of attendance.
To make debt payback easier later, take steps to reduce the amount you borrow now. These steps can include:
By taking these steps, you can keep your borrowing well below the maximum you’re allowed -— and set yourself up for more financial security later. Remember, you don’t have to borrow the maximum student loan limits, and should aim to borrow less whenever possible.