What Is the Maximum Student Loan Amount for Lifetime?
If you’re looking to finance your education with student loans, you’re probably wondering how much you can borrow. The maximum student loan amount for lifetime is determined by a few factors, including the type of loan and your financial need. Read on to learn more.
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Federal Stafford Loans
Federal Stafford Loans are the most common type of student loan. They’re available to undergraduate and graduate students, and they have a fixed interest rate. The maximum amount you can borrow depends on your grade level and whether you’re a dependent or independent student.
Subsidized Stafford Loans are for undergraduate students with financial need. Your school will decide how much you can borrow, and the amount may be less than the maximum amounts listed below.
-For the 2020-2021 school year,
--the maximum amount you can borrow as a first-year student is $3,500.
--For second-year students, it’s $4,500.
--If you’re a third- or fourth-year student, or if you’re in a fifth year of study to get a degree that usually takes four years to complete, your maximum Stafford Loan amount is $5,500.
Unsubsidized Stafford Loans are need-based loans available to both undergraduate and graduate students. The maximum amount you can borrow each year is determined by your school, your year in school, and whether you are a dependent or independent student.
The current interest rate for unsubsidized Stafford Loans is 6.08%. Interest accrues on unsubsidized Stafford Loans from the date of disbursement and continues throughout the life of the loan. You can choose to pay the accrued interest while you are in school or defer it until after you leave school or enter repayment. If you defer interest, it will be added to your principal balance (capitalized) when you enter repayment, which means you will pay interest on a larger loan amount and your monthly payments will be higher.
Federal Perkins Loans
Federal Perkins Loans are need-based loans available to undergraduate and graduate students with exceptional financial need. The loans are made through a school that participates in the Perkins Loan program.
The maximum amount you can borrow is:
-$5,500 for each year of undergraduate study, with a total limit of $27,500.
-$8,000 for each year of graduate or professional study, with a total limit of $60,000 ($40,000 for graduate or professional study undertaken before July 1, 1987).
Federal Graduate PLUS Loans
The Federal Graduate PLUS Loan is a federal student loan available to graduate and professional students enrolled at least half-time in a degree program at an eligible school. PLUS Loans can help pay for education expenses not covered by other financial aid, up to the cost of attendance minus any other financial aid received.
Eligible graduate and professional students can borrow up to the cost of attendance (determined by the school) minus any other financial aid they receive. Loans have a flat interest rate of 7.08% for loans first disbursed on or after July 1, 2019, and before July 1, 2020.
Private Student Loans
The maximum student loan amount for private student loans is not regulated by the federal government. Private student loans are issued by banks, credit unions, and other financial institutions. The maximum loan amount is determined by the lender and may vary based on the borrower’s credit history and other factors.