When looking for student loans, there are a number of things to compare, and loan limits is just one example. Because of low loan limits, students often have to get multiple loans to cover all of their expenses. We suggest getting a federal loan first, if eligible, because they offer better borrower benefits, such as deferment and income based repayment plans. However, if you’ve hit your federal limit and still come up short on funds, private loans can be a good way to fill the gap.
Federal loan limits change depending on year of school, as well as whether a student is dependent or independent. Check out the table below for the complete loan limit information.
Loan TypeAnnual Loan LimitLifetime Limit$5,500 Undergrad.$8,000 Grad.$27,500 Undergrad.
$60,000 Undergrad. & Grad.Year 1: $3,500
Year 2: $4,500
Year 3+: $5,500Year 1: $3,500
Year 2: $4,500
Year 3+: $5,500
Grad: $6,500Year 1: $6,000
Year 2: $6,000
Year 3+: $7,000
Grad: $12,000
While federal loans have some stricter limits, most private loans allow students to take out up to the cost of attendance, minus whatever other aid the student receives (though this can be flexible). Private loans can be used for just about any school-related expense, such as housing, computers, tuition, and even food. If your federal aid did not cover all school expenses, then private loans can be a great way to pick up the slack.
Compare your private loan options today!
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