College Student Loans, How Much Can I Borrow?
When applying for a college student loan, how much can I borrow? It actually depends on your year in school and whether you have a subsidized or unsubsidized Direct or FFEL Stafford Student Loan. A subsidized student loan is awarded based on financial need. If you are eligible for a subsidized student loan, the government will pay the interest on your student loan while you are in school, for the first six months after you leave school, and if you qualify to have your payments deferred. Depending on your financial needs, you may borrow subsidized money for an amount up to the annual loan-borrowing limits for your level of study.
You might be able to borrow student loan funds beyond your subsidized loan amount even if you do not have demonstrated financial needs. In that case, you would receive an unsubsidized student loan. Your school will subtract the total amount of your other financial aid from your cost of attendance to determine whether you are eligible for an unsubsidized student loan. Unlike a subsidized student loan, you are responsible for the interest from the time the unsubsidized student loan is disbursed until it is paid in full. You can choose to pay the interest or allow it to accumulate and be capitalized. Capitalizing the interest will increase the amount you will need to repay.
You can receive a subsidized student loan and an unsubsidized student loan for the same enrollment period as long as you do not exceed the annual college student loan limits.
If you are a dependent undergraduate student, each year you can borrow up to:
• $3,500 (as of the 2007-08 academic year) if you are a first year student enrolled in a program of study that is at least a full academic year.
• $4,500 (as of the 2007-08 academic year) if you have completed your first year of study and the remainder of your program is at least a full academic year.
• $5,500 if you have completed two years of study and the remainder of your program is at least a full academic year.
If you are an independent undergraduate student or a dependent student whose parents have applied for but were unable to get a PLUS Parent Loan, each year you can borrow up to:
• $7,500 (as of the 2007-08 academic year) if you are a first year student enrolled in a program of study that is at least a full academic year. No more than $3,500 of this amount may be in subsidized student loans.
• $8,500 (as of the 2007-08 academic year) if you have completed your first year of study and the remainder of your program is at least a full academic year. No more than $4,500 of this amount may be in subsidized student loans.
• $10,500 (as of the 2007-08 academic year) if you have completed two years of study and the remainder of your program is at least a full academic year. No more than $5,500 of this amount may be in subsidized student loans.
If you are a graduate or professional degree student, each year you can borrow up to:
• $20,500 as of the 2007-08 academic year. No more than $8,500 of this amount may be in subsidized college student loans.
When you graduate with a graduate or professional degree, the maximum total debt allowed from Stafford Student Loans is $138,500. No more than $65,500 of this amount may be in subsidized college tudent loans. This maximum total graduate debt limit includes Stafford Student Loans received for undergraduate study. However, the aggregate student loan limit for graduate and professional students enrolled in certain approved health profession programs is $224,000.
These amounts are the maximum yearly amounts you can borrow in both subsidized and unsubsidized FFELs or Direct Student Loans, individually or in combination. Because you cannot borrow more than your cost of attendance minus the amount of any Federal Pell Grant you are eligible for and minus any other financial aid you will get, you may receive less than the annual maximum amounts typically allowed.
