How Much Can You Get in Student Loans?

When applying for student loans, the amount you can borrow depends on the type of loan and lender. Federal loans have set limits, private loans have more flexibility but different terms. You may be able to borrow enough to cover the full cost of your education, but you should only borrow what you need. Larger loan amounts mean higher interest rates. Calculating your total educational expenses and subtracting any financial aid you have already received is a good starting point.

How Much Is College Tuition?

College costs vary depending on the type of institution and your residency status. For the 2024-2025 academic year, private colleges have an average tuition and fees of $43,505. Public universities charge an average of $24,513 for out-of-state students, and in-state students pay around $11,000. So, an in-state public college is nearly 75% cheaper than a private school. For students at public two-year institutions, the cost is much lower, in the state district students pay $3,990 for the 2023-2024 year.

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What Is the Difference Between Tuition and Fees?

• Tuition. Tuition is the primary cost of education and covers the cost of instruction. It's usually the largest college-related expense for students and varies by school, program, and residency status.

• Fees. Fees are additional charges students pay to enroll and attend classes. These fees can vary widely depending on the school and often fund specific services or campus facilities, such as lab use, activities, technology, and health services. At private colleges, fees are generally lower and may be used for student activities while in state systems they may cover costs not included in tuition such as facility maintenance or technology upgrades.

How Much Can You Borrow Overall?

Student loans have limits based on the type of loan and your year in school. Undergraduates can borrow up to $12,500 per year and $57,500 total through federal direct loans. Graduate students can borrow up to $20,500 per year with a total cap of $138,500. Federal PLUS loans cover the total cost of attendance. Private loans are typically capped at the cost of attendance minus other aid. While there are loan limits, you should only borrow what you need, considering your future earnings to keep debt manageable.

Federal Loan Limits

• Direct subsidized loans. These loans are for undergraduate students who demonstrate financial need. Interest does not accrue while the student is in school or during deferment periods.

• Direct unsubsidized loans. Available to all U.S. citizen undergraduate, graduate, and professional students, regardless of financial need. Interest accrues while the student is in school and during deferment periods.

• Parent or graduate PLUS loans. These loans are available to parents borrowing on behalf of their undergraduate children and to graduate and professional students. PLUS loans have the highest interest rates and the fewest repayment options, with interest accruing while the student is in school or during deferment.

Private Student Loan Limits

Private loan limits vary by lender, but generally can’t exceed the cost of attendance at your school minus any other aid you receive. Before private loans, max out your federal student loans, as federal loans offer protections that private loans do not. These protections include income-driven repayment plans and loan forgiveness programs that are not available with most private loans.

How Much You Should Borrow

While student loan limits set the maximum amount you can borrow, you’re not required to borrow the full amount if you don’t need it. Borrowing more than necessary means more debt and more interest over time, making repayment harder. To keep your loan manageable, borrow only what you need. A good rule of thumb is to keep your monthly loan payment at around 10% of your projected after-tax income during your first year out of school.

How to Reduce Student Loan Debt

• Go to a community college. Attending a community college can save big time. Tuition and fees at public two-year schools are much lower than at four-year institutions, so students can save money, earn credits, and transfer to a four-year college later.

• Consider a no-loan school. Some colleges have no-loan policies or offer free tuition for students with low household incomes. These schools meet full financial needs without student loans, so overall debt is reduced.

• Estimate college costs. Don’t forget to consider all expenses, not just tuition. Use the U.S. Department of Education’s College Navigator to calculate the net price after financial aid and get an accurate picture of the costs.

• Max out other funding sources. Before borrowing, apply for grants, scholarships, and college savings plans. Complete the FAFSA to qualify for financial aid, as most families qualify for some type of aid.

• Start a side hustle or get a part-time job. Earning extra income can help cover expenses and reduce borrowing. Many students use YouTube or TikTok, traditional part-time jobs or some employers offer tuition assistance.

• Limit living expenses. Housing, meals, and personal expenses add up fast. Students should look for ways to save, like living on campus or cooking at home, to minimize costs and reduce borrowing.

• Borrow only what you need. Don’t borrow the maximum loan amount if you don’t need it. Borrowing more means higher payments, so make sure to assess how much debt is manageable before accepting loans.

• Know the payments. Be clear on repayment terms and use the Department of Education’s repayment calculator to estimate monthly payments. Knowing your obligations will help you plan better for post-graduation life.

• Know your salary expectations. Compare loan repayments with your potential starting salary. Don’t borrow more than you’ll earn to avoid financial strain.

• Evaluate student loan options. Federal loans are better than private loans due to more favorable repayment options. Exhaust federal loan options first, and then private loans if necessary. Always compare interest rates and terms.

Conclusion