A Quick Guide About Yearly Federal Student Loan Limits?

Answer 1

Introduction:

Contrary to popular belief, the federal government sets limits on the amount of money students can obtain each year from various federal student loan programs. These limits are used to encourage students to borrow what they need to pay for their college educations.

Many students have questions about these limits. As a result, here's a brief guide that can help students understand what these limits are as of the time this guide was written. It includes information on how much money undergraduate, graduate and professional students can borrow from various federal student loan sources.

Undergraduate student loan limits are based on a student's dependency status.

This is the case because students who can be claimed on their parent or guardian's tax returns are eligible to borrow less than students who are independent.

As a result, here's a summary of the maximum amount a dependent undergraduate student can borrow each year:

• Freshman may borrow up to $5,500 each year.
• Sophomores may borrow up to $6,500 each year.
• Juniors and Seniors may borrow up to $7,500 each year.
• Students enrolled in an approved college preparatory course program may borrow up to $2,625 each year.
• Students enrolled in a teacher certification program can borrow up to $5,500 each year.

Independent undergraduate students may borrow more money each year from these loan sources.

• For example, freshmen may borrow up to $9,500 each year.
• Sophomores may borrow up to $10,500 each year.
• Juniors and seniors and students enrolled in a teacher certification program may borrow up to $12,500 each year.
• Students enrolled in college preparatory courses may borrow $7,000 to $8,625 each year. This amount is based on the type of courses the student is taking.
• Graduate students may borrow up to $20,500 each year.
• Medical school students may borrow up to $40,500 each year.

These limits are based on factors including the total amount of subsidized and unsubsidized student loans taken out by students each year. Moreover, these limits are subject to change without notice. As a result, be sure to visit your school's financial aid office if you have questions about these yearly federal student loan limits.