When it coems time to pay tuition, it can be tough gathering all the money you need together, so you may be concerned with what student loan limits are at, and how they can assist you in providing enough funding to be able to pay for your tuition. Being that there are both private and federal student loan limits, we will discect the limits for each, showing you the range of what you can qualify for when going to apply for loans.
Federal Student Loan LimtsStafford Loans
Stafford Loans come in the form of both subsidized or needs based loans, as well as unsubidized, or not based off of financial needs. The student loan limts for Stafford Loans differ for both subsidized and usubsidized, and are currently set at:
- Subsidized – Student loan limits are set for each year of schooling for subsidized Staffords Loans, and range from; 1st years up to $3,500, 2nd years up to $4,500 and 3rd years and above who have a limit of $5,500. Graduate loan limits are set at up to $6,500 per year. Lifetime loan limits are set at up to $23,000
- Unsubsidized – For unsubsidized Stafford Loans, they have categories of both dependent and independent students, with loan limits for students that are independent being much hire. Loan limits for dependent students are up to $2,000 per year no matter what year you are in, and up to $8,000 throughout the lifetime of ones schooling. The independent student loan limits are; up to $6,000 for both the 2st and 2nd years, from the 3rd year on loan limits are up to $7,000 and for graduates their borrowing limits are up to $12,000 each year. The lifetime borrowing limits are set at #34,500 for the Stafford Loan Program.
- Student loan limits for Federal Perkins Loans are set at up to $5,500 per year for undergraduates, and up to $8,500 per year for graduates. Their lifetime loan limits are set at $27,500 for undergraduates and at $60,000 for the cumulative studies of both undergraduates and graduates.
- PLUS Loan differ from that of the loans programs mentioned above as they are for parents who apply for loans that are designated for their dependant children. The loans limits students can enjoy with PLUS Loans are the “Cost of Attendence” minus whatever other student aid they are receiving.
Private Student Loan LimitsWhen it comes to the private student loan limits, one gets more free reign on things, as you can borrow how ever much you need to compensate for what your federal student aid didn’t cover. So say, for example, your costs of attendance is $20,000 for the year, and you received $2000 from the Pell Grant Program, $4000 from the Stafford Loan Program and $1000 from any other source of federal student aid, totaling your feder student aid to $7000, your student loan limits for borrowing from a private lender would be set at $13,000. Now private student loans can be great and can help you cover the rest of your tuition costs, but they tend to come with higher interest rates as well as less flexible repayment terms, compared to federal loans, so the best method to use when going and applying for private student loans is to take somebody who has an awesome credit score, like 750 or higher, which will both drop the interest rates lower than what you would have paid with bad credit, as well as set your up for other discounts.
(The student loan limits used above are for examples purposes, and by no means represent what you may or may not recieved in federal loan money.)