How much is a student loan
There are limits on the student loan that you can get.
And these limits based on many factors.
These factors include how much cost to attend the school, your year in school, and the type of loan (private or federal).
It is essential to know for you that you should not borrow the maximum amount of the loan.
You should borrow the amount of loan that you can pay back with the interest rate.
Loan limits depend on different factors.
Both cumulative and annual limits impact the amount that you can borrow.
The amount that your parents can borrow will not subtract from your aggregate or annual limits.
How much is a student loan?
There are four main types of loans.
1: Federal Direct Unsubsidized
3: Federal Direct Subsidized
4: Federal Direct PLUS
So, there are three types of federal student loans.
There are many departments of education student loans.
The subsidized loan is easy to obtain.
And these are less expensive than private or PLAN loans.
Moreover, these loans don’t require a cosigner or credit check. It is because these have built-in repayment and protection options that aren’t present in private, PLUS, and unsubsidized loans.
These subsidized loans are only available for undergraduate students.
While on the other hand, unsubsidized loans can be taken out by graduate and undergraduate students.
Federal Direct Students Loans:
Here is a table below that will help you know how much is student loan to borrow.
Undergrads SUBSIDIZED TOTAL
( Parents Eligible for
Year 1 $3,500 $5,500
Year 2 $4,500 $6,500
Year 3 $5,500 $7,500
Dependent Undergrads SUBSIDIZED TOTAL
(Parents not eligible for
Year1 $3,500 $9,500
Year 2 $4,500 $10,500
Year 3 $5,500 $12,500
This borrowed amount of loan affects the eligibility of the parents that will help you to take out a Direct PLUS loan.
If they are eligible that your borrow amount is less.
And if they aren’t eligible then, you can borrow more.
Federal Direct PLUS Loans:
Federal Direct PLUS Loans are available to dependent graduate’s parents.
PLUS loans don’t have a cap on the borrowed amount.
But you can’t borrow more than the attendance cost.
Attendance cost includes room and board, equipment and supplies, books, fees and tuition, miscellaneous expenses and, transportation.
PLUS loans require a credit check but don’t require specific credit score.
Borrowers can’t have an adverse credit history unless someone wants to be an endorser.
Private Students loans:
Private loans are from financial institutions, credit unions, and banks.
This limit varies by lender but generally max out at total attendance cost.
Most private lenders have a maximum amount of loans that you can’t exceed at any cost.
How much is a student loan is granted to Students By education?
An undergraduate student is eligible to borrow loans up to %5,500 per year.
But this loan also depends on the financial needs and other aid received amounts.
Undergraduate students are also eligible to borrow loans between $5,500 and $12,500 in a year in Direct Subsidized Loans.
But the Direct Unsubsidized loan depends on other factors.
Graduate students can borrow up to $8,000 in a year.
This loan depends on the availability of funds at selected career school or college.
In Direct Unsubsidized loans, graduate students can receive up to $20,500.
In Direct PLUS loans, Graduate students can borrow the remainder of their college costs.
Parents of the students of the dependent undergraduate students are also eligible to get a loan through PLUS loans.
They can get a loan to cover the college remainder costs that they can’t cover with their financial aid.
Lifetime cap exists for the loans that you borrow through the federal student loan programs.