You can take out student loans to help you cover the cost of college — but there’s a limit to how much you can take out. So, exploring your other options like federal PLUS Loans and private student loans can help you fill that gap.
The only borrowing limit on federal PLUS Loans is your cost of attendance (minus other financial aid you’ve received). Private student loan limits can depend on your ability to repay, but many private lenders will cover up to the full cost of attendance.
Federal loan limits
Federal loan limits depend on whether your parents are supporting you or not, and how far along you are in school. When you’re an undergraduate, your family’s finances will also determine whether you can qualify for subsidized loans, which don’t rack up interest while you’re in school.
Federal borrowing limits for dependent undergraduates
| | Subsidized borrowing limit |
|---|
| $5,500 ($9,500 if your parent can't get a PLUS loan) | |
| $6,500 ($10,500 if your parent can't get a PLUS loan) | |
| $7,500 ($12,500 if your parent can't get a PLUS loan) | |
| $31,000 ($57,500 if your parent can't get a PLUS loan) | |
If you depend on your parents for support, you’re considered a dependent student. Dependent undergraduate students can take out $5,500 to $7,500 in federal student loans each year in they’re in school, up to a total limit of $31,000. If your family qualifies, up to $23,000 of your total borrowing can be in subsidized loans.
If you hit your annual or total borrowing limit and your parents can’t qualify for a PLUS loan, the higher loan limits for independent undergraduates apply.
Federal borrowing limits for independent undergraduates
| | Subsidized borrowing limit |
|---|
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If you’re married, over the age of 24, a military veteran, or supporting yourself, you’re considered an independent student. If you’re independent of your parents, you can borrow a little more — up to $12,500 a year, and $57,500 in total. But you can’t take out more than $23,000 in subsidized loans as an undergraduate.
Learn More: How Military Veterans and Dependents Can Pay for College
Federal borrowing limits for graduate students
| | Subsidized borrowing limit |
|---|
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Your federal borrowing limits are higher if you’re working on a master’s or doctorate program, including an M.A., MBA, M.D., J.D., or Ph.D.
The annual borrowing limit for grad students is $20,500 a year, and you can borrow up to $138,500 in total, including the loans you took out as an undergraduate. Since July 1, 2012, grad students aren’t eligible to take out subsidized loans anymore. But it’s possible for grad students who took them out before then to have up to $65,500 in subsidized loans.
Medical school students can take out up to $224,000 in federal loans before turning to grad PLUS or private medical school loans. For most medical school students, the annual borrowing limit on the more affordable federal student loans is $40,500.
Learn More: Graduate Student Loan Limits: How Much Can You Get?
PLUS loan limits
Students and families who have hit their limits on the more affordable federal student loans often turn to PLUS loans. PLUS loans are available to both parents of undergraduates (parent PLUS loans) and to graduate students (grad PLUS loans).
You can take PLUS loan right up to your school-certified cost of attendance, minus other financial aid you’ve received. The cost of attendance includes not just your tuition and fees, but room and board, books, supplies, and transportation.
If your parent can't get a Direct PLUS loan, perhaps due to an adverse credit history, your total borrowing limit for subsidized and unsubsidized federal loans increases to $57,500.
Private loan limits
Limits on private student loans depend on your ability to repay a loan. Lenders look at how much of your monthly income would be required to repay your loan, and all your other existing obligations (your debt-to-income ratio). Because students usually don’t have a history of credit and earnings, most private student loans to undergraduates are cosigned by a parent, or another relative or friend.
In addition to looking at your ability to repay, most private student lenders will have a maximum loan limit. Regardless of how much you or your cosigner earns, private lenders won’t lend more than your cost of attendance, minus other aid you’ve received.
Advertiser Disclosure$1,000 to $350,000 (depending on degree)
Overview
Citizens Bank offers private student loans for undergraduate and graduate students, as well as parents. With its multiyear approval option, you can apply for a loan once, and as long as you qualify, you won't need to reapply each year. This means you can secure loans for future academic years without multiple hard credit checks.
Citizens borrowers can also take advantage of interest rate discounts. If you or your cosigner has an account with Citizens Bank, you can reduce your rate by 0.25 percentage points. Another 0.25 percentage points can be shaved off by enrolling in automatic payments, giving you the chance to lower your rate by up to 0.5 percentage points.
Loan terms
5, 10, or 15 years for student loans; 5 or 10 years for parent loans
Loan amounts
$1,000 minimum, up to a maximum of $225,000 for undergraduate and graduate degrees; $300,000 for MBA and law; and $225,000 or $400,000 for health care student loans, depending on the degree type
Eligibility
Must be a U.S. citizen or permanent resident enrolled at least half-time in a degree-granting program at an eligible institution. International students can apply with a cosigner who’s a U.S. citizen or permanent resident.
$1,000 up to 100% of the school-certified cost of attendance
Overview
College Ave offers student loans for almost every type of degree program, with a range of repayment options, including a unique eight-year repayment term. Additionally, you can get extended grace periods of as long as 36 months on graduate, dental, and medical student loans.
It's also possible to get loan approval for multiple school years at one time. About 90% of undergraduates applying with a cosigner are approved for additional student loans. However, you must complete at least half of your repayment term before you can remove a cosigner for your loan. Some lenders allow cosigners to be released much sooner, after as few as one to two years of payments.
Loan terms
5, 8, 10, or 15 years for most borrowers (law, dental, medical, and other health profession students have up to 20 years)
Loan amounts
$1,000 minimum up to your school’s annual cost of attendance; lifetime limits depend on your degree and credit profile
Cosigner release
Available after more than half of the scheduled repayment period has elapsed and other requirements are met
Eligibility
Must be a U.S. citizen or permanent resident at an eligible institution. International students with a Social Security number and a qualified cosigner may also qualify. Applicants who can’t meet financial, credit, or other requirements may qualify with a cosigner.
$1,000 up to 100% of school-certified cost of attendance
Overview
Sallie Mae offers the Smart Option Student Loan for undergraduate students and a suite of loans for graduate students. You can borrow up to your school-certified cost of attendance and apply just once annually to get the funds you need for the entire academic year. Plus, applying for a Smart Option Student Loan with a cosigner may help you get a better rate.
Through Sallie Mae, you can find a variety of loans designed for specific needs, including loans for MBA programs, law school, medical school, and health profession programs.
Loan terms
10 to 15 years for the Smart Option Student Loan; 15 years for law school, MBA, and graduate school loans; 20 years for medical school loans
Loan amounts
$1,000 up to school-certified cost of attendance. Student must be listed as the borrower, and a parent may cosign.
Cosigner release
After you graduate, make 12 one-time principal and interest payments, and meet certain credit requirements
Eligibility
Must be a U.S. citizen or permanent resident enrolled in an eligible program. Noncitizens residing and attending school in the U.S. may qualify by applying with a creditworthy cosigner, who must be a U.S. citizen or permanent resident, and providing an unexpired government-issued photo ID.
Loan Amounts
$1,000 to $350,000 (depending on degree)
Overview
Citizens Bank offers private student loans for undergraduate and graduate students, as well as parents. With its multiyear approval option, you can apply for a loan once, and as long as you qualify, you won't need to reapply each year. This means you can secure loans for future academic years without multiple hard credit checks.
Citizens borrowers can also take advantage of interest rate discounts. If you or your cosigner has an account with Citizens Bank, you can reduce your rate by 0.25 percentage points. Another 0.25 percentage points can be shaved off by enrolling in automatic payments, giving you the chance to lower your rate by up to 0.5 percentage points.
Loan terms
5, 10, or 15 years for student loans; 5 or 10 years for parent loans
Loan amounts
$1,000 minimum, up to a maximum of $225,000 for undergraduate and graduate degrees; $300,000 for MBA and law; and $225,000 or $400,000 for health care student loans, depending on the degree type
Eligibility
Must be a U.S. citizen or permanent resident enrolled at least half-time in a degree-granting program at an eligible institution. International students can apply with a cosigner who’s a U.S. citizen or permanent resident.
Loan Amounts
$1,000 up to 100% of the school-certified cost of attendance
Overview
College Ave offers student loans for almost every type of degree program, with a range of repayment options, including a unique eight-year repayment term. Additionally, you can get extended grace periods of as long as 36 months on graduate, dental, and medical student loans.
It's also possible to get loan approval for multiple school years at one time. About 90% of undergraduates applying with a cosigner are approved for additional student loans. However, you must complete at least half of your repayment term before you can remove a cosigner for your loan. Some lenders allow cosigners to be released much sooner, after as few as one to two years of payments.
Loan terms
5, 8, 10, or 15 years for most borrowers (law, dental, medical, and other health profession students have up to 20 years)
Loan amounts
$1,000 minimum up to your school’s annual cost of attendance; lifetime limits depend on your degree and credit profile
Cosigner release
Available after more than half of the scheduled repayment period has elapsed and other requirements are met
Eligibility
Must be a U.S. citizen or permanent resident at an eligible institution. International students with a Social Security number and a qualified cosigner may also qualify. Applicants who can’t meet financial, credit, or other requirements may qualify with a cosigner.
Loan Amounts
$1,000 up to 100% of school-certified cost of attendance
Overview
Sallie Mae offers the Smart Option Student Loan for undergraduate students and a suite of loans for graduate students. You can borrow up to your school-certified cost of attendance and apply just once annually to get the funds you need for the entire academic year. Plus, applying for a Smart Option Student Loan with a cosigner may help you get a better rate.
Through Sallie Mae, you can find a variety of loans designed for specific needs, including loans for MBA programs, law school, medical school, and health profession programs.
Loan terms
10 to 15 years for the Smart Option Student Loan; 15 years for law school, MBA, and graduate school loans; 20 years for medical school loans
Loan amounts
$1,000 up to school-certified cost of attendance. Student must be listed as the borrower, and a parent may cosign.
Cosigner release
After you graduate, make 12 one-time principal and interest payments, and meet certain credit requirements
Eligibility
Must be a U.S. citizen or permanent resident enrolled in an eligible program. Noncitizens residing and attending school in the U.S. may qualify by applying with a creditworthy cosigner, who must be a U.S. citizen or permanent resident, and providing an unexpired government-issued photo ID.
What to do if you hit your federal loan limits
If you’ve hit your annual or total federal loan limits, you can consider federal PLUS or private student loans. But first, it might be a good idea to:
- Talk to your school’s financial aid office: Some schools offer emergency grants to help students in need. You might also be offered the option to make monthly payments on your tuition and fees for the semester.
- Apply for work-study or a side gig: Many colleges offer work-study programs based on financial need. Or look for part-time work off-campus to help you pay for living expenses and books.
- Cut your class load: While cutting your class load might save a little money in the short run, it could cost you more in the long run. If it takes longer than four years to graduate, you might end up taking out more loans for the extra semester or two spent finishing your degree.
- Switch schools: If you can’t afford to pay for the school you’re enrolled in, consider transferring to a public university where you can qualify for in-state tuition, or to a local community college.
How much should you borrow?
The low borrowing limits and interest rates on the most affordable federal loans for undergrads mean that most borrowers who finish their degrees can repay them.
But if you go on to grad school, it’s easier to take on the level of student loan debt that’s more difficult to repay. The higher limits on PLUS loans can saddle you with six-figure loan debt.
You can use the Department of Education’s College Scorecard to get an idea of how much debt it’s reasonable to take on with the degree you are pursuing.
Tip:
A good rule of thumb is not to borrow more than what you expect your annual earnings to be after graduation.
Meet the expert:
Matt Carter
Matt Carter is an expert on mortgages and student loans with over 20 years of experience. He has provided financial insight to CNBC, CNN Money, The New York Times, The Wall Street Journal, and The Washington Post.
