Graduate Loan Limits: How Much You Can Borrow for Grad School

Graduate school can open the door to higher earning potential, but it comes with a high price tag. Graduate students who need financial support can use federal and private student loans to cover education costs. However, the amount you can borrow is limited. 

Graduate loan limits vary based on your loan type, the total cost of attendance, and your financial credentials. This guide explains the grad school loan maximum for different loan types and offers some tips on funding your degree program.

Current private student loan rates

What are the federal loan limits for graduate students?

Graduate students are eligible for two types of federal student loans: Direct Unsubsidized Loans and Graduate PLUS loans. Each  has different borrowing rules:

• Direct Unsubsidized Loans: Graduate students can borrow up to $20,500 per academic year, with a lifetime cap of $138,500. However, as of July 1, 2026, the aggregate limit will be reduced to $100,000 for graduate students and $200,000 for professional students.
• Graduate PLUS loans: Graduate PLUS loans don’t have a fixed annual borrowing limit; instead, you can borrow up to the cost of attendance. However, these loans are being phased out for new borrowers after July 1, 2026. 

How do private graduate student loan limits work?

Unlike federal graduate loan limits, most private student loans don’t have specific annual or lifetime limits. Instead, the amount you’re allowed to borrow is based on the following factors:

• Certified cost of attendance: Most private lenders cap your loan amount at your school’s certified cost of attendance, minus any other financial aid you received. The cost of attendance includes tuition, fees, room and board, books, and living expenses. 
• Borrower creditworthiness: Lenders also consider your credit score, income, and debt-to-income (DTI) ratio when determining how much you can borrow. If you don't meet your lender's income and credit requirements, you can apply with a co-signer.  
• Lender policies: Each lender sets its own rules for private graduate loans. For example, lifetime caps vary by lender.

How much should you borrow for graduate school?

There’s no one-size-fits-all answer regarding the amount of student debt you should take on. However, it’s best to only borrow the amount you need to cover essential expenses. You must repay every dollar you borrow with interest, so being intentional can make a big difference in your finances after graduation. 

To limit the amount you borrow, start by creating a realistic budget. Map out your total costs, including tuition, fees, books, and housing. Look for ways to reduce your need for loans by qualifying for scholarships or taking advantage of tuition assistance through your employer. 

Finally, make sure your monthly loan payments are manageable given your estimated starting salary. Careers with higher lifetime earnings may justify taking out more student loan debt. 

“My general rule is that a borrower's monthly payment on education debt should not exceed 10% of their monthly income,” says Tom O’Hare, a holistic college advisor at Get College Going, which provides college planning and financial aid coaching. “When borrowing, students should factor in interest rates, repayment terms, and their overall undergraduate and graduate educational debt."

What happens if you reach your graduate student loan limit?

If you hit your unsubsidized loan limits, there are other ways you can cover graduate school costs.

Grad PLUS loan borrowing remains an option temporarily, though these loans will no longer be available after July 2026. You can also apply for private student loans, which may allow you to borrow up to the remaining cost of attendance. 

You can also try to reduce your borrowing costs. For instance, the program you choose can have a major impact on your total costs. "The choice between public and private colleges, and their associated costs, can also move the needle in the borrower's favor,” says O'Hare.

In-state public universities or online programs often cost significantly less than private or out-of-state schools. For many careers, accreditation and job placement matter more than the university you attended.

And many students don’t realize that financial aid offers may be negotiable. If you have a strong academic background and competing offers from different schools, it’s worth asking whether the school can increase your grants or tuition discounts.

How to increase your graduate borrowing eligibility

If federal loans don’t cover your full graduate school costs, there are steps you can take to increase your borrowing eligibility, especially with private lenders. 

Credit score is a key factor in determining eligibility for private student loans, so improving your credit can help you qualify to borrow the money you need. Paying down debt can also strengthen your application and increase the amount you’re approved to borrow. 

Applying with a cosigner who has strong credit and a steady income may also make it possible to qualify for a higher loan amount and more favorable terms than you’d qualify for on your own. Look for loans offering cosigner release if you want the option to remove your cosigner without having to refinance your private student loans.

Your academic program can also influence your borrowing limits. Some private lenders will loan more money to students enrolled in programs associated with stronger future earning potential.

“Shopping around matters,” says Jack Wang, a college financial aid advisor at Innovative Advisory Group. “It’s likely that lenders and even colleges themselves may offer vastly different requirements and rates as everyone will be guessing at how the private student loan marketplace plays out.”