You might be wondering how much you can take out for a student loan. Find out about the different types of student loans and how much you can get.
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Most students need some form of financial aid to attend college, and student loans are one way to help cover the cost of tuition and other associated expenses. But how much can you actually borrow? The answer isn’t as straightforward as you might think.
Federal student loans have a maximum amount that you can borrow each year, and there are also limits on the total amount that you can borrow for your entire education. But these amounts aren’t set in stone, and there are a few ways that you can borrowing more money if you need it.
Here’s a look at the maximum amounts that you can borrow each year and for your entire education with federal student loans, as well as how to get more money if you need it.
How much you can take out
The amount you can take out for a student loan will depend on the type of loan you get, as well as the school you are attending. For federal loans, the maximum amount you can borrow each year is $5,500 for a freshman, $6,500 for a sophomore, and $7,500 for a junior or senior. For a private loan, the amount you can borrow will depend on the lender, but the maximum amount is usually around $20,000.
Federal student loans
There are two types of federal student loans: subsidized and unsubsidized. Subsidized loans are need-based, which means the government pays the interest while you’re in school and during your grace period. Unsubsidized loans are not need-based, which means you’re responsible for all the interest that accrues from the time the loan is disbursed until it’s paid off.
The amount you can borrow for an unsubsidized loan depends on your dependency status and grade level. For subsidized loans, the amount you can borrow is based on your financial need. The maximum amount you can borrow for both subsidized and unsubsidized loans combined is $31,000 for dependent students and $57,500 for independent students (and $138,500 for independent undergraduate and graduate students combined).
Private student loans
There’s no limit on how much you can borrow with a private student loan. The amount you’re eligible for depends on factors like creditworthiness and the cost of attendance at your school, less any other financial aid you receive.
To get an idea of how much you might be able to borrow, use our Private Student Loan Calculator. You can also compare private student loan options by visiting our Student Loan Comparison Tool.
If you have any questions about private student loans, please call us at 1-888-407-7195.
How to decide how much to take out
You might be wondering how much you can take out for a student loan. The answer to this question is not as simple as it may seem. It depends on a variety of factors, including the type of loan you’re getting, your financial need, and the cost of attendance at your school. In this article, we’ll go over everything you need to know about how to decide how much to take out for a student loan.
Consider your other expenses
In addition to tuition, you’ll have other college-related expenses like textbooks, transportation and housing. If you’re living at home or in a dorm, your costs will be lower than if you’re living off campus. Make sure to factor in all of your expenses when you’re determining how much money you need to take out in loans.
It can be helpful to use a budget calculator to estimate your costs and get an idea of how much money you’ll need to take out in loans. Keep in mind that your budget may change from year to year, so you may need to adjust your loan amount accordingly.
Consider your future earnings
Before taking out any loans, you should always consider your future earnings. Will you be able to comfortably make the monthly payments on the loan while also covering your other expenses?
You can use a loan repayment calculator to estimate your future monthly payments and get an idea of how much you can afford to borrow. Be sure to include any other debts you may have in the calculation, as this will give you a more accurate estimate of your monthly payments.
Consider your future earnings and other debts when decide how much to take out in student loans.
To sum it all up, you can take out a student loan for your undergraduate or graduate degree. You’ll have to start paying back the principal and interest six months after you leave school or drop below half-time enrollment. The limit on how much you can borrow depends on factors like your year in school and whether you’re a dependent or independent student. You can usually get a lower interest rate if you have a cosigner who meets certain credit criteria.