Factors To Consider When Borrowing
When you are trying to bridge the gap between your expenses, income, and other forms of aid, consider the following before deciding how much to borrow.
Loan Amount
Evaluate your In-school budget. You may not want to borrow the full amount for which you qualify. You should never borrower more than what you need.
Annual Loan Limits vs. Aggregate Loan Limits
When you borrow federal student loans, there are limits on how much you can take out. These limits are broken into annual limits and aggregate limits.
Annual Loan Limits
Annual loan limits are the maximum amount you can borrow during a single academic year.
- These limits depend on factors like:
- Your year in school (freshman, sophomore, etc.)
- Your dependency status (dependent or independent student)
- The limit resets each academic year, meaning you may borrow up to the allowed amount again the following year if needed.
Aggregate Loan Limits
Aggregate loan limits are the total amount you can borrow over your entire academic career.
- This is a lifetime cap across all years you receive federal student loans.
- It includes all federal loans you’ve borrowed.
- Once you reach your aggregate limit, you cannot borrow additional federal student loans, even if you’re still enrolled.
Key Difference
- Annual limit: How much you can borrow each year
- Aggregate limit: How much you can borrow in total over time
Why This Matters
Understanding these limits can help you:
- Plan how to fund your education across multiple years
- Avoid borrowing more than you’re eligible for
- Make informed decisions about budgeting and repayment
Undergraduate Students (Direct Subsidized & Unsubsidized Loans)
|
Dependency
Status |
Annual Limit | Aggregate Limit |
|
Dependent |
Freshman: $5,500 (no more than $3,500 can be subsidized) |
$31,000 |
| Sophomore: $6,500 (no more than $4,500 can be subsidized) | ||
| Junior, Senior and 2nd Bachelor: $7,500 (no more than $5,500 can be subsidized) | ||
|
Independent |
Freshman: $9,500 (no more than $3,500 can be subsidized) |
$57,500 |
| Sophomore: $10,500 (no more than $4,500 can be subsidized) | ||
| Junior, Senior and 2nd Bachelor: $12,500 (no more than $5,500 can be subsidized) |
Maximum subsidized portion remains capped at $23,000 total
Graduate Students (Non Professional Programs)
| Annual Limit (Before OBBB* Through 6/30/2026) | Aggregate Limit (Before OBBB* Through 6/30/2026) | Annual Limit (After OBBB* On/After 7/1/2026) | Aggregate Limit (After OBBB*On/After 7/1/2026) |
| $20,500 Direct Unsubsidized + Grad PLUS up to Cost of Attendance | $138,500 (incl. undergrad loans) | $20,500 Direct Unsubsidized only | $100,000 (graduate loans only) |
Per the One Big Beautiful Bill (OBBB*), Graduate PLUS Loans are eliminated for new borrowers beginning July 1, 2026 (limited legacy exceptions may apply).
To view more details, visit One Big Beautiful Bill Act – Important Definitions | Federal Student Aid and go to the Loan Limits Exception Section.
Professional Degree Students (Law, Medicine, Dentistry, Veterinary Medicine, Pharmacy, etc.)
| Annual Limit (Before OBBB* Through 6/30/2026) | Aggregate Limit (Before OBBB* Through 6/30/2026) | Annual Limit (After OBBB* On/After 7/1/2026) | Aggregate Limit (After OBBB*On/After 7/1/2026) |
| $20,500 Direct Unsubsidized + Grad PLUS up to Cost of Attendance | $138,500 | $50,000 Direct Unsubsidized | $200,000 minus any amount that was received as a graduate student |
One Big Beautiful Bill (OBBB*)
Graduate PLUS Loans are eliminated for new borrowers beginning July 1, 2026 (limited legacy exceptions may apply).
To view more details, visit One Big Beautiful Bill Act – Important Definitions | Federal Student Aid and go to the Loan Limits Exception Section.
Parent PLUS Loans (Undergraduate Students)
| Annual Limit (Before OBBB* Through 6/30/2026) | Aggregate Limit (Before OBBB* Through 6/30/2026) | Annual Limit (After OBBB* On/After 7/1/2026) | Aggregate Limit (After OBBB*On/After 7/1/2026) |
| Up to Cost of Attendance (no cap) | No limit | $20,000 per dependent student | $65,000 per dependent student |
One Big Beautiful Bill (OBBB*)
Additional Limits (All Students)
- Overall lifetime federal student loan limit (excluding Parent PLUS): $257,500 (not more than $23,000 can be subsidized) and includes subsidized and unsubsidized loans received regardless of grade level.
- Institutions may establish lower program level loan limits under the new law.
Repayment Period
The Federal Direct Loan Program offers a variety of loan repayment options with repayment periods of 10-25 years. If you choose a shorter repayment period, you will pay less in interest charges. For more information visit our Loan Repayment page.
Borrowers Rights and Responsibilities
Review and understand your rights and responsibilities for each loan program. Keep a copy of all paperwork associated with your loans for future reference.
Loan Forgiveness Options
You may be eligible to have some—or even all—of your student loans forgiven! Eligibility often depends on your career field, employer, or the repayment plan you’re enrolled in. Learn more about these opportunities to see if you qualify at Student Loan Forgiveness | Federal Student Aid.
Disclosure Statement
Federal student loan limits and eligibility rules are subject to change based on federal legislation, regulation, or U.S. Department of Education guidance. For the most current and accurate information, visit StudentAid.gov:
Federal Student Aid Updates.