What’s the maximum amount you can take out from a student loan

According to StudentAid.gov, federal undergraduate students can borrow $5,500–$12,500 annually for the 2025-2026 academic year, capped at $31,000–$57,500 lifetime. Graduate students can borrow $20,500 annually up to $138,500 total. PLUS loans and private lenders can cover remaining costs up to your school’s Cost of Attendance minus other aid.

Worried your loans won’t cover the full bill—or that borrowing too much could strain your family’s budget or saddle students with unmanageable debt? Understanding the specific ceilings for each loan type is crucial for planning your education financing strategy effectively.

You’ll learn exact federal loan limits by year and status, how PLUS loans work, what private lenders offer, and how to calculate your personal borrowing ceiling. For families, understanding these limits helps with budgeting and credit decisions; for students, it shapes how much debt you’ll graduate with. By the end, you’ll be able to identify your maximum federal borrowing, understand when private loans make sense, and calculate your true borrowing ceiling.

How student loan maximums work: the Cost of Attendance rule

Context: How Student Loan Maximums Work

Before memorizing specific dollar amounts, it is vital to understand the universal rule that governs all student lending. Every college has a specific Cost of Attendance (COA), which serves as the absolute ceiling for your financial aid package. The COA includes tuition and fees, but also estimates for room, board, books, supplies, transportation, and personal expenses.

According to StudentAid.gov, the total financial aid you receive—including grants, scholarships, work-study, federal loans, and private loans—cannot exceed this COA figure. This means your maximum borrowing amount is not just determined by lender limits, but by the following formula: Cost of Attendance minus Other Financial Aid = Maximum Loan Eligibility.

It is important to note that schools update their COA annually. Furthermore, these costs vary significantly based on your housing status (living on-campus, off-campus, or with parents) and your enrollment status (full-time vs. part-time). For example, if a school’s COA is $35,000 and you receive $10,000 in grants and scholarships, your maximum total borrowing from all sources combined is $25,000. You cannot borrow $30,000 in loans, even if a lender is willing to offer it, because it exceeds the school’s certified cost.

This rule applies to federal Direct Loans, PLUS loans, and private loans. When you apply for a loan, the lender will ask the school to certify the amount, and the school will cap it at this gap.

For more details on how aid packages are constructed, read our guide on financial aid basics.

Decision tool: federal Direct Loan limits at a glance

Decision tool: Find your federal loan maximum

For most families and students, Federal Direct Loans are the first borrowing option because they come with fixed interest rates and flexible repayment terms. However, the government sets strict annual limits on these loans based on how far along the student is in school and their dependency status.

Dependent students (those who rely on parental financial support) have lower limits because the government assumes parents may contribute or utilize Parent PLUS loans. Independent students (typically age 24 or older, married, or veterans) have higher limits to account for their financial autonomy.

The table below outlines the maximum amounts you can borrow in Direct Subsidized and Unsubsidized Loans for the 2025-2026 academic year. Note that the “Subsidized Limit” is a portion of the total, not an additional amount.

Source: StudentAid.gov (limits for 2025-2026 academic year)

In this table, the “Combined Annual Maximum” is the total Direct Loan amount available. For example, a first-year dependent student can borrow $5,500 total. Of that, up to $3,500 can be subsidized (where the government pays interest while in school), provided there is financial need. The remainder will be unsubsidized.

These annual limits reset each academic year, but there is also a lifetime cap on how much you can borrow total—let’s look at aggregate limits next.

Federal Direct Loan aggregate limits: your lifetime borrowing cap

While annual limits control your borrowing for a single year, the Department of Education also enforces aggregate loan limits. These are lifetime caps on the total amount of Federal Direct Loans you can carry at any one time. Once you reach these limits, you are ineligible for additional Direct Loans until you pay down your balance or consolidate under specific circumstances.

According to StudentAid.gov, the aggregate limits for the 2025-2026 academic year are as follows:

• Dependent Undergraduate Students: $31,000 total (no more than $23,000 can be in subsidized loans).
• Independent Undergraduate Students: $57,500 total (no more than $23,000 can be in subsidized loans).
• Graduate and Professional Students: $138,500 total (no more than $65,500 can be in subsidized loans).

It is critical to understand that the graduate limit includes loans borrowed during undergraduate study. For example, if you enter a master’s program with $30,000 in outstanding undergraduate federal loans, your remaining borrowing capacity for graduate school is $108,500 ($138,500 minus $30,000). These limits include all outstanding principal but generally do not include interest that has accrued or been capitalized.

If you reach these caps, you cannot borrow more through the standard Direct Loan program, even if you haven’t finished your degree. This reality makes it essential to track your borrowing annually to ensure you have enough funding to complete your education. For more on managing federal debt, visit our federal loans guide.

Federal Direct Loans have firm caps, but what if your education costs exceed these limits? That’s where PLUS loans come in—they can cover remaining costs up to your full Cost of Attendance.

Parent PLUS loan maximum amounts

When Direct Loans and scholarships don’t cover the full bill, parents of dependent undergraduate students can utilize Direct PLUS Loans, commonly known as Parent PLUS loans. Unlike standard student loans, these do not have a fixed annual dollar cap like the $5,500 limit mentioned earlier.

The maximum amount a parent can borrow is the school’s Cost of Attendance minus any other financial aid the student receives. As a reminder, you cannot exceed the COA, but the PLUS loan is designed specifically to fill the entire remaining gap. For example, if a university’s COA is $45,000 and the student receives $20,000 in combined aid (grants, scholarships, and their own Direct Loans), the parent can apply for a PLUS loan of up to $25,000.

Because the borrowing potential is higher, the requirements are stricter. Parents must undergo a credit check. While a high credit score isn’t strictly required, the Department of Education checks for “adverse credit history,” such as recent bankruptcies or delinquencies. If adverse credit is found, parents may still qualify by obtaining an endorser (similar to a cosigner) or documenting extenuating circumstances.

Legally, the parent is the sole borrower responsible for repayment. The debt cannot be transferred to the student. According to StudentAid.gov, interest rates for PLUS loans are higher than student Direct Loans; the rate for loans disbursed between July 1, 2024 and June 30, 2025 is 9.08%, with an origination fee of 4.228% deducted from the loan amount.

According to Sandy Baum, higher education finance expert, “Borrowing is not inherently bad; the question is how much, and under what terms.” This highlights a key consideration for families: just because you can borrow the full cost of attendance doesn’t mean it is always the best financial move. Comparing the total cost of a PLUS loan against other options is essential.

For a detailed breakdown of application steps, see our Parent PLUS guide.

Grad PLUS loan maximum amounts

Graduate and professional students have access to a similar funding mechanism called Grad PLUS loans. These work almost identically to Parent PLUS loans regarding maximum amounts but are taken out by the student rather than a parent.

The maximum borrowing limit for a Grad PLUS loan is the Cost of Attendance minus all other financial aid. Typically, a graduate student will first borrow their maximum $20,500 in Direct Unsubsidized Loans (which have lower interest rates and fees) and then use Grad PLUS loans to cover the remainder of their tuition and living expenses.

For instance, if a medical school program has a COA of $60,000 and the student has secured $5,000 in grants and the full $20,500 Direct Unsubsidized Loan, a Grad PLUS loan can cover the remaining $34,500. Unlike the aggregate limits discussed earlier for Direct Loans, there is no specific aggregate lifetime limit for PLUS loans, provided the borrower remains credit-eligible.

Grad PLUS loans require a credit check looking for adverse history. The interest rates and fees are the same as Parent PLUS loans (9.08% interest and 4.228% origination fee for disbursements between July 1, 2024 and June 30, 2025). Because the student is the borrower, they are fully responsible for repayment.

When federal options—including PLUS loans—still leave a funding gap or when families prefer different repayment terms, private student loans offer another path to cover remaining costs.

Private student loan maximum amounts

Private student loans are issued by banks, credit unions, and online lenders rather than the federal government. Because they are commercial products, their maximum loan amounts are determined by individual lender policies rather than federal law, though they must still adhere to the school’s Cost of Attendance certification.

According to Bankrate’s 2025 analysis, most private lenders offer annual limits ranging from $75,000 to $150,000, or simply state they will cover up to 100% of the school-certified cost of attendance. Lifetime aggregate limits for private loans typically range from $150,000 to over $200,000, depending on the lender and the student’s degree program. Medical, dental, and law students often qualify for significantly higher aggregate limits due to the high cost of those degrees.

However, your personal maximum is heavily influenced by your financial profile. Lenders assess:

• Creditworthiness: Your credit score and history.
• Income: Proof of ability to repay.
• Cosigner Strength: Since most students have limited credit history, a creditworthy cosigner is usually required to get approved for substantial amounts.
• Existing Debt: Your debt-to-income ratio may limit how much a lender is willing to extend.

Unlike federal loans where limits are standardized, private loan limits are individual. One lender might approve you for $10,000 while another approves you for the full $30,000 gap.

According to Mark Kantrowitz, financial aid expert, “Private loans can be a good option when federal loans don’t cover the full cost of attendance.” They serve as a gap-financing tool for families who may have exhausted federal limits or who have strong credit that qualifies them for competitive interest rates.

For more on evaluating lenders, review our private student loans guide.

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Five-step checklist: calculate your maximum borrowing amount

Now that you understand the different loan types and their limits, you can calculate exactly how much funding is available to you. Use this checklist to determine your personal borrowing ceiling.

1. Find Your School’s Cost of Attendance (COA): Visit your school’s financial aid website. Locate the COA for the current academic year, ensuring you select the correct figure for your housing status (on-campus, off-campus, or living at home).
2. Subtract Gift Aid: Deduct the total amount of grants, scholarships, tuition waivers, and work-study funds listed in your financial aid award letter.
3. Check Federal Direct Loan Caps: Refer to the table in the “Decision Tool” section above. Identify your annual limit based on your year in school and dependency status. Subtract this amount from your remaining need.
4. Assess the Remaining Gap: If you still have costs to cover, this remaining figure is the maximum you can borrow in Parent PLUS, Grad PLUS, or private student loans. Compare these options based on interest rates, fees, and credit requirements.
5. Stress-Test the Payment: Before you sign for the maximum amount, use a loan calculator to estimate your monthly payment. Ensure the future payment fits within your expected starting salary.

Understanding the factors that can change your maximum helps you plan ahead—let’s look at what affects your borrowing limits.

Factors that affect your maximum loan amount

While the numbers outlined in this guide provide a baseline, your specific situation determines which limits apply to you. Several key factors can influence your borrowing capacity from year to year.

• Dependency Status: This is the most significant factor for undergraduates. As detailed in our FAFSA guide, independent students have higher annual and aggregate Direct Loan limits than dependent students. A change in status (turning 24, getting married, or having a child) can increase your federal eligibility mid-degree.
• Grade Level: Federal limits increase as you progress. A sophomore can borrow more than a freshman, and a junior can borrow more than a sophomore. If you transfer credits and advance a grade level mid-year, you may become eligible for additional funds.
• Degree Type: Graduate and professional students have significantly higher limits than undergraduates. Furthermore, students in certain health profession programs (like medical or dental school) may qualify for even higher Direct Unsubsidized Loan limits beyond the standard $20,500.
• Remaining Aid: Remember that “other aid” reduces your loan eligibility. If you win a new $5,000 private scholarship, your maximum allowable loan amount decreases by $5,000 to keep you within the Cost of Attendance.
• Prior Borrowing: Every dollar you borrow counts toward your aggregate limit. If you took out loans for a program you didn’t finish or have been in school for many years, you might hit the lifetime cap before completing your current degree.

With all these factors in mind, let’s address the most common questions about student loan maximums.

Frequently asked questions about student loan limits

No. The Cost of Attendance minus other financial aid is the absolute legal ceiling for all student loans combined. You cannot borrow more than the school certifies is necessary for your education, even if you feel you need more for living expenses.

If you reach the annual limit for Federal Direct Loans but still have costs to cover, you have two main options. Parents of undergraduates can apply for a Parent PLUS loan, or students can apply for private student loans to cover the remaining balance up to the Cost of Attendance.

Annual limits reset each academic year (e.g., you can borrow another $5,500-$7,500 next year). However, aggregate limits are lifetime caps that do not reset. The total amount you borrow accumulates over time until you reach the aggregate ceiling.

Generally, you cannot increase the limit unless your student status changes. If a dependent student’s parent is denied a PLUS loan due to adverse credit, the student may become eligible for the higher “independent” student loan limits.

Graduate students can borrow up to $20,500 per year in Direct Unsubsidized Loans. If that isn’t enough, they can use Grad PLUS loans to cover the remaining Cost of Attendance. The aggregate limit for federal loans for grad students is $138,500.

No. Private student loans and federal student loans have separate tracking systems. Borrowing a private loan does not lower your federal aggregate limit, though it does count toward the annual Cost of Attendance cap for that specific school year.

Navigating student loan limits can be complex, but knowing your maximums is the best way to prevent funding surprises. Here are the most important points to remember:

• The Golden Rule: Your absolute maximum borrowing is your school’s Cost of Attendance minus other financial aid—this applies to all loans combined.
• Federal Caps: Federal Direct Loan limits range from $5,500–$12,500 annually for undergraduates and $20,500 for graduate students, with aggregate caps of $31,000–$138,500 depending on your status.
• Gap Fillers: PLUS loans (Parent and Grad) and private loans have no fixed dollar cap; they can cover the entire remaining cost up to the COA after other aid is applied.
• Private Loan Nuance: Private limits are based on creditworthiness and individual lender policies, serving as a flexible option when federal limits are exhausted.
• Strategy: Always maximize federal Direct Loans first for their protections and fixed rates, then consider PLUS or private loans for any remaining need.

To move forward, check your school’s current Cost of Attendance and calculate your funding gap after grants and scholarships. Review your eligibility on StudentAid.gov, and if you need additional funds, compare your options carefully.

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References and resources

For more official information and tools to help you manage your student loans, consult these authoritative resources:

• StudentAid.gov: The primary source for all federal financial aid information, including loan limits, PLUS loan applications, and the FAFSA.
• Your School’s Financial Aid Office: The best source for your specific Cost of Attendance and details on your personal financial aid package.
• Federal Student Aid Information Center: A resource for answering specific questions about federal loan eligibility and aggregate limits.
• Consumer Financial Protection Bureau (CFPB): Provides tools for comparing financial aid offers and understanding borrower rights regarding private student loans.