College is costly. Federal student loans may be the best option for you if your bachelor or master program requires that you borrow money. There are annual and lifetime loan limits for federal student loans.
Depending on where you study and what you want to achieve, you may already have borrowed the maximum amount. If this happens, you will need to look for other ways to finance your education.
What are the federal aggregate loan limits?
Federal loans are popular for paying for college. As a matter of fact, 58% of private school students and 44% of public university students who were first-time undergrads took out federal student loans. Why is it that they are so popular? Federal loans offer lower rates of interest and more options for repayment than other types of student debt.
There are limits to the total amount of loans that can be borrowed each year and for specific federal loan programs. The maximum amount of loan that you can borrow under Direct Subsidized/Direct Unsubsidized Loans programs of the U.S. Department of Education will depend on your eligibility.
The loan limit applies to the entire course of your education, whether you change schools or return after a break for several years before completing your degree.
Maximum Undergraduate Loans Aggregated
Direct Subsidized and Direct Unsubsidized loans are available to undergraduate students. Subsidized and Direct Unsubsidized are both available for undergraduate students.
The aggregate limit of direct subsidized and unsubsidized loans for undergraduate independent students is $57,500. The maximum amount of Subsidized loan is $23,000.
Subsidized loan amounts cannot exceed $23,000.
Graduate student aggregate loan limits
For undergraduate and graduate students, there are differences in the annual and aggregate limits of loans.
Graduate or professional students are not eligible to receive Direct Subsidized Student Loans. They are also considered independent even if they are still receiving support from their parents.
This limit applies to all loans, whether they are Direct Subsidized Loans or Unsubsidized Loans that you may have taken out in order to pay for undergraduate degrees.
The total loan limit for graduate students and professionals is $138.500. Direct Subsidized student loans cannot exceed $65,500.
Four ways to pay for school after reaching the student loan aggregate limits
You may have to look for an alternative loan if you are in a costly program or going to graduate school. Here are four ways to pay for the remainder of your education costs:
1. Reach out to the Financial Aid Office
If you have reached the maximum loan amount, contact the financial aid department of your school and explain what happened. Filling out the FAFSA may make you eligible for additional financial aid, including low-interest institution loans and work-study programs.
2. Scholarships, Grants and Research Opportunities
You can combine multiple awards to reduce your education costs. Multiple awards can be combined to lower your education costs. The best part is that you don't need to repay scholarships or grants as long as you follow the terms of the award.
Juno's Scholarship Database can be used to find scholarships. You can search MBA scholarship, law-school opportunities, and other scholarships.
3. Plus Loans
There are no aggregate limits on federal student loan amounts. Direct PLUS Loans, which are loans for parents or graduate students, do not have an annual limit.
- You can only apply for Parent PLUS Loans if you are an undergraduate student.
- You can't do it.
- You can apply for Grad Plus Loans by yourself if you're a professional or graduate student.
The applicant must undergo a check of their credit rating for both PLUS loans. Plus loans come with higher interest rates and fees.
4. Consider Private Loans for Students
Private student loans may be an option for you if your federal loan limit has been reached and you still need money to attend school. Private lenders typically allow students to borrow as much money as they need for school, including tuition, room and boards, textbooks, etc.
Private student loans for undergraduates and graduates have fewer benefits and repayment options than federal student loans. You may also need a cosigner in order to qualify.
Many lenders will offer you lower rates of interest and longer terms to repay your loan, which can help make monthly payments more affordable.
Paying For School
If you are considering federal loans to fund your undergraduate or postgraduate education, be sure to check the maximum aggregate student loan amount. Once you reach the federal student loans limits, you will no longer be eligible to receive federal loans.
Explore your options for federal loans, private student loans and scholarships to get the funding you need.
Join Juno to find the lowest interest rates on private loans. Juno ensures that you will get the best interest rate for private student loans. Juno guarantees to beat any lower rate. The account creation is quick and easy.
