How Much Can You Get in Student Loans?

The amount you can borrow in student loans depends on several factors, including the type of loan and the lender. Federal loans have set limits, while private loans offer more flexibility. It's important to only borrow what you need to avoid high interest rates. Start by calculating your total educational expenses and subtracting any financial aid received.

06.03.2023

2317

21 min.

How Much Is College Tuition?
How Much Can You Borrow Overall?
Federal Loan Limits
Private Student Loan Limits
How Much You Should Borrow
How to Reduce Student Loan Debt
Conclusion

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.

Note! U.S. News' 2024-2025 survey revealed that nearly 200 of the 596 ranked private colleges have tuition and fees exceeding $50,000.

University of Southern California. Tuition and required fees - $71,647.
Brown University (RI). Tuition and required fees - $71,312.
Vassar College (NY). Tuition and required fees - $71,030.
Franklin & Marshall College (PA). Tuition and required fees - $70,794.
Trinity College (CT). Tuition and required fees - $70,770.

Source: 2025 U.S. News Best Colleges

Alice Lloyd College (KY). Tuition and required fees - $13,960.
Voorhees University (SC). Tuition and required fees - $12,630.
Tougaloo College (MS). Tuition and required fees - $12,628.
Universidad Politecnica de Puerto Rico. Tuition and required fees - $9,870.
University of Holy Cross (LA). Tuition and required fees - $2,505.

Source: 2025 U.S. News Best Colleges

Princeton University. Tuition and required fees - $62,400.
Massachusetts Institute of Technology. Tuition and required fees - $62,396.
Harvard University. Tuition and required fees - $61,676.
Stanford University. Tuition and required fees - $65,910.
Yale University. Tuition and required fees - $67,250.

Source: 2025 U.S. News Best Colleges

Service academies. The United States Naval Academy, the United States Military Academy at West Point, and other service academies offer tuition-free education in exchange for service after graduation. Students must commit to serving in the military for a set amount of time, and in return, their tuition, housing, and food are covered.
Work-required colleges. Some colleges like Alice Lloyd College in Kentucky and Warren Wilson College in North Carolina offer tuition-free education but require students to work a certain number of hours on campus to cover their educational costs.
Promise programs. 441 promise programs across the U.S. offer scholarships covering up to 100% of tuition and fees. These programs usually have residency or income requirements and are often available at the two-year institution level, though some like New York's Excelsior Scholarship extend to four-year institutions as well.
Adult learner programs. Programs like the Kansas City Scholars Adult Learner Scholarship offer financial support to adults 24 and older who are pursuing higher education. This particular program offers up to $10,000 per year to students with modest incomes.
Local promise programs. Over 300 promise programs exist at the local level helping students in specific communities afford tuition. These programs often focus on local students and may have additional eligibility requirements.

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.

The total cost of attendance can be misleading as many families don’t end up paying the full “sticker price” due to financial aid and institutional grants. To get a clearer understanding of the actual cost experts recommend using the net price calculator available on each college’s website, which is a federal requirement. The net price is the amount a student will pay after scholarships and grants are subtracted. These calculators are designed for first-time, full-time undergraduates and estimate costs based on the information provided helping families get a more accurate picture of the out-of-pocket expenses they will face.

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.

First year. Dependent students $5,500 overall, $3,500 subsidized. Independent students $9,500 overall, $3,500 subsidized.
Second year. Dependent students $6,500 overall, $4,500 subsidized. Independent students $10,500 overall, $4,500 subsidized.
Third year and beyond. Dependent students $7,500 overall, $5,500 subsidized. Independent students $12,500 overall, $5,500 subsidized.
Total undergraduate limit. Dependent students $31,000 overall, $23,000 subsidized. Independent students $57,500 overall, $23,000 subsidized.
Interest rates. 6.53% for Direct Subsidized and Unsubsidized Loans for undergrads.
Loan fees. All Direct Subsidized and Unsubsidized Loans have a loan fee. The fee is a percentage of the loan amount, deducted proportionally from each disbursement. For loans disbursed on or after July 1, 2024, and before July 1, 2025, the fee is 2.05%.

Loan types. Graduate and professional students can borrow federal direct unsubsidized loans. These loans are not need-based.
Annual borrowing limits. Graduate students can borrow $20,500 per year in unsubsidized loans. Certain medical training programs allow for an annual limit of $40,500.
Total borrowing limits. Over their undergraduate and graduate careers, students can borrow a maximum of $138,500 in direct loans, no more than $65,500 of that being subsidized. PhD students in Human Services Psychology (Clinical Psychology concentration only) can borrow $224,000, with no more than $65,500 subsidized.
Interest rates. 8.08% for unsubsidized loans made to graduate students.
Loan fee. 3.60% if the loan is first disbursed on or after July 1, 2024, and before July 1, 2025.

Loan types. PLUS loans for graduate and professional students, as well as parents of dependent undergrads.
Loan limits. No limits. The maximum you can borrow is the cost of attendance at the school minus any other aid you or your child receive. This includes tuition, fees, room and board, books, and other supplies.
Interest rate. 9.08%. Fixed for the life of the loan.
Loan fee. 4.60% if the loan is first disbursed on or after July 1, 202,4, and before July 1, 2025.

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.

Ascent. $200,000 undergraduate, $400,000 graduate.
Citizens Bank. $225,000.
Sallie Mae. Cost of attendance.
Earnest. $250,000.
SoFi. Cost of attendance.
Brazos Higher Education. Cost of attendance.
Education Loan Finance. Cost of attendance.
ISL Education Lending. Cost of attendance.

Fixed-interest rates. Range from 3.47% to 17.99%.
Variable-interest rates. Range from 4.81% to 23.0%.

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

Student loans can be a heavy burden but understanding borrowing limits and repayment options is key to managing debt. Borrowing only what’s necessary and looking for alternatives like grants, scholarships, and part-time work can reduce loan reliance. Choosing affordable options like community colleges or no-loan schools and minimizing living expenses can lower costs. With planning and a clear view of future earnings, students can manage loans and avoid too much debt.

FAQ

While federal and private lenders have limits, there are ways to get more if needed. For federal loans, the limit is strict and cannot be exceeded, even if you attend a high-cost school. But Parent PLUS loans can bridge the gap, parents can borrow more. Keep in mind, that Parent PLUS loans have higher interest rates than other federal options and may lead to more debt over time. Make sure to consider if the extra borrowing is necessary and manageable.

When deciding how much to borrow for college, consider the long-term impact of taking on debt. Borrowing the full amount seems easy but means more debt and higher interest payments after graduation. Borrowing less means you’ll reduce your overall financial burden, but you’ll need to find other ways to cover the difference, like using savings, grants, or scholarships. Borrowing less can save you money but requires more effort upfront to manage the remaining expenses.

Consider an in-state school. If you were planning to attend an out-of-state school, switching to a lower-cost in-state school can lower your tuition and other expenses.
Online programs. Online education also means no housing and commuting costs, which can reduce your overall expenses.
Federal work-study programs. Participating in a work-study program can give you part-time employment to help cover living costs and reduce the need for extra loans.
Off-campus housing or roommates. Living off-campus or with roommates can save you a lot on room and board compared to dorms.
Used textbooks. Instead of buying new textbooks, consider renting or buying used ones to cut down on textbook costs.
Scholarships and grants. Unlike loans, scholarships and grants don’t need to be repaid, so look for these to reduce your financial burden.
Part-time job. If your schedule allows, get a part-time job to have extra income to cover some of your college expenses and minimize loan needs.