How much in unsubsidized loans can I get?
Federal Direct Student Loans
If, for example, your subsidized loan total in year one as a dependent undergrad is $3,500, you are limited to $2,000 in unsubsidized loans for that year. If your subsidized total is less than $3,500, the difference between that and $5,500 can be unsubsidized loans.
Federal Direct Student Loans
If, for example, your subsidized loan total in year one as a dependent undergrad is $3,500, you are limited to $2,000 in unsubsidized loans for that year. If your subsidized total is less than $3,500, the difference between that and $5,500 can be unsubsidized loans.
Financial Aid recipients will be terminated upon reaching 150 percent of the number of credits needed to complete their degree, diploma or certificate program. This regulation applies to all students, including those that have not previously received financial aid.
Aggregate Loan Limits
Independent undergraduates and dependent students whose parents are unable to obtain PLUS Loans: $57,500. Graduate and professional students: $138,500 (or $224,000 for certain medical training) including undergraduate borrowing.
If those monthly payments look low compared to what most borrowers pay, it's because most borrowers carry a lot more than $20,000 in student loan debt. As of March 2023, the average federal student loan debt in the United States was about $37,720, according to a BestColleges analysis of Education Department data.
Maximum amount (2022-23) | |
---|---|
Direct Subsidized Loan | $3,500 to $5,500 per year, depending on year in school |
Direct Unsubsidized Loan | $5,500 to $20,500 per year, depending on year in school and dependency status |
Direct PLUS Loan | Total cost of attendance |
Federal work-study | Varies by school |
Direct Unsubsidized Loan Fees
Fees are deducted from each loan disbursem*nt. You can ask the college financial aid office to increase the loan amount to cover the fees, up to the annual loan limit.
But you might be surprised to learn that there are no FAFSA income limits to qualify for aid. For example, a family with a household income of hundreds of thousands of dollars could be helped by other factors in the FAFSA formula, including school costs and the number of siblings also attending school.
The amount of Federal Pell Grant funds a student may receive over his or her lifetime is limited by a new federal law to be the equivalent of six years of Pell Grant funding. Since the maximum amount of Pell Grant funding a student can receive each year is equal to 100%, the six-year equivalent is 600%.
There are no income limits on the FAFSA. Instead, your eligibility for federal student aid depends on how much your college costs and what your family should contribute. Learn how your FAFSA eligibility is calculated and other ways to pay for college if you don't qualify for federal student aid.
What is the maximum subsidized and unsubsidized loan amount?
Subsidized and Unsubsidized Aggregate Loan Limit
$138,500 for graduate or professional students - no more than $65,000 of this amount may be in subsidized loans (the graduate aggregate limit includes all federal loans received for undergraduate study).
The maximum amount you can borrow each academic year in Direct Unsubsidized Loans ranges from $5,500 to $12,500 for undergraduates, depending on your year in school and your dependency status. Direct Unsubsidized Loans have an annual limit of $20,500 for graduate or professional students.
Request Additional Federal Student Loans
If you've exhausted other options and still need additional funds to help you pay for school, contact your school's financial aid office to find out if you're eligible for additional federal student loans.
- Plan educational expenses with loan limits in mind.
- Visit your college's financial aid office.
- Consider borrowing PLUS loans.
- Shop around for private student loans.
The maximum amount that undergraduate students can borrow each year in federal direct subsidized and unsubsidized loans ranges from $5,500 to $12,500 per year, depending on their year in school and whether they're a dependent or independent student.
Depending on your loan type and repayment plan, you could be in debt for 10 to 30 years. So, how much is too much student loan debt? The Consumer Financial Protection Bureau recommends borrowing no more than you expect to earn in one year from an entry-level position after graduation.
Rich parents or not—fill out the FAFSA
It's a legitimate question and the answer is yes, you should complete the FAFSA even if you think your parents make too much money for financial aid. You might be surprised that you are eligible for aid you didn't think you'd qualify for.
For example, if your citizenship status changed because your visa expired or it was revoked, then you would be ineligible. Other reasons for financial aid disqualification include: Not maintaining satisfactory progress at your college or degree program. Not filling out the FAFSA each year you are enrolled in school.
While it is possible for student financial aid to cover full tuition, in practice it will fall short. For most students, there will not be enough financial aid to cover the full cost of tuition, unless the parents borrow a Federal Parent PLUS loan.
Federal Pell Grant
The maximum Pell Grant for the 2023-24 award year is $7,395. The maximum Pell Grant per term is $3,698 for Fall/$3697 for Spring. The Expected Family Contribution (EFC) range for 2023-24 Pell Grant eligibility is 0 – 6,656.
Should I accept unsubsidized loan?
That said, if you do decide to take on federal loans, it's generally wise to accept subsidized loans first because they offer more benefits in the form of government interest payments. Unsubsidized loans, on the other hand, put you on the hook for all of the interest that accrues on the loan.
Direct Unsubsidized Loans are available to undergraduate, graduate, or professional degree students enrolled at least half-time at a school that participates in the Direct Loan Program. Financial need is not required to qualify.
Students often skip filling out the FAFSA because they think their families make too much money to qualify for aid. However, there are no FAFSA income limits, so you can submit it—and potentially get valuable financial aid—regardless of your family's earnings.
What are the FAFSA income limits? A common myth is that students from high-income families won't qualify for FAFSA funding. In reality, there's no maximum income cap that determines your eligibility for aid. Although your earnings are a factor on the FAFSA, only some programs are based on need.
You have multiple options to consider, including federal financial aid, scholarships, grants, a job and student loans. Although paying for college by yourself is a huge financial undertaking, it's possible with enough research, hard work and planning.
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