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Maximum Borrowing Amounts
How are borrowing amounts determined?
Perhaps you did not qualify for other types of financial aid, or you need additional funds to meet the cost of your education. There are several types of federally guaranteed, low interest rate loans available to students and parents which depending on your need may be available.
Students may qualify for a Direct Subsidized or Unsubsidized loan. With Direct Subsidized loans, the federal government pays all interest on the loan while the student is attending school on at least a half-time basis.
Direct Unsubsidized loans are similar, but the student borrower will be required to repay all interest that accrued while they were in or out of school. On both loans, the borrower will have a six-month grace period before they must begin repayment of their loans.
Finally, there are also Direct PLUS Loans. Graduate students and parents of dependent undergraduate students attending college at least half-time can apply for a Direct PLUS loan to help cover the cost of higher education. Unlike Direct Subsidized and Unsubsidized loans, Direct PLUS loans begin repayment once the loan is fully disbursed, and the borrower is responsible for all accrued interest.
How much can I borrow?
The federal government will calculate your specific financial need through the results of your FAFSA application. Your school then uses these results to determine how much you are eligible to borrow. Listed below are the maximum annual and aggregate loan limits for dependent and independent students.
| Maximum Stafford Loan Limits1 |
| Dependent Undergraduate Students2 |
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Freshmen |
$5,500 |
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Up to $3,500 in Subsidized loans |
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Sophomore |
$6,500 |
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Up to $4,500 in Subsidized loans |
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Junior & Senior |
$7,500 |
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Up to $5,500 in Subsidized loans |
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Lifetime Limit |
$31,000 |
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Up to $23,000 in Subsidized loans |
| Independent Undergraduate Students |
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Freshmen |
$9,500 |
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Up to $3,500 in Subsidized loans |
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Sophomore |
$10,500 |
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Up to $4,500 in Subsidized loans |
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Junior & Senior |
$12,500 |
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Up to $5,500 in Subsidized loans |
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Lifetime Limit |
$57,500 |
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Up to $23,000 in Subsidized loans3 |
| Graduate Students |
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Graduate |
$20,500 |
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Up to $8,500 in Subsidized loans |
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Lifetime Limit |
$138,500 |
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Up to $65,500 in Subsidized loans4 |
1) Annual and aggregate loan limits effective 7/1/2008.
2) Dependent students may be eligible to receive loan funding at the Independent level if their parent is denied a Direct PLUS loan.
3) Includes Dependent Direct Subsidized/Unsubsidized and Federal Family Education Loan Program (FFELP) Stafford loan debt.
4) Includes Undergraduate Direct Subsidized/Unsubsidized and Federal Family Education Loan Program (FFELP) Stafford loan debt.
Direct PLUS Loans Annual Limits
Direct PLUS loans have no loan limits. Parents and graduate students can borrow up to the total cost of education minus any other financial aid received. The lender determines if the applicant is credit worthy based on federal criteria as set forth in the Unified Student Loan Policy.
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