What is the Maximum Amount to Borrowing Student Loans?

Key Takeaways

• Private student loans may cover up to 100 percent of your school-certified cost of attendance
• Cost of attendance includes tuition, housing, books, and other education-related expenses
• Federal and private loans have different borrowing limits and requirements
• Your actual loan amount depends on financial aid received and lender criteria
• Borrowing only what you need can help reduce long-term debt

How can I pay for school? The maximum amount of loans you may qualify for depends on your unique financial situation and your school’s cost of attendance. With private student loans, you may be able to borrow up to 100 percent of your school-certified cost of attendance, which can include tuition, room and board, textbooks, and other education-related expenses. As you start to apply for student loans, keep in mind that you should only borrow the money you actually need and avoid taking on more debt than necessary.

Are you wondering about the maximum amount you could borrow? Curious about how you can use student loans? Before you start planning, take a look at this overview.

Federal Student Loan Limit

Federal student loans are loans made to college students by the government, and they can be subsidized or unsubsidized.

What is the difference between the two loans? Subsidized loans are based on your income, while unsubsidized loans are not dependent on your financial situation.

To apply for these loans, you need to fill out a Free Application for Federal Student Aid (FAFSA). Completing the FAFSA is an important first step, as it helps determine your eligibility for federal aid, which is often used before turning to private student loans to cover remaining costs. Eligibility varies depending on your income, dependency status, year in school, and the type of federal loan. You can also learn about various grants you might receive. Grants are an important factor in determining how much to borrow.

There are limits on the maximum amount of loans you can borrow. After July 2026, federal Direct Loans cap undergrad borrowing at $20,000/year within a $257,500 lifetime limit. Graduates get $20,500/year up to $100,000 aggregate; professional students $50,000/year up to $200,000. Parents limited to $20,000/year ($65,000 total) per student via Parent PLUS. Grad PLUS eliminated.

Private Student Loan Limits

In contrast to federal loans obtained from the government, private student loans are loans obtained through banks, credit unions, or other private businesses. The limits vary from lender to lender. Individual lenders may have specific dollar limits you may borrow each academic period or even a lifetime limit. Still, in most cases, you cannot borrow more than your school-certified cost of attendance. In many cases, private student loans allow you to borrow up to 100 percent of that amount, minus any financial aid you’ve already received. Unlike federal loans, private loans are credit-based, and a cosigner may be required.

Because different organizations make private student loans, not only may the maximum loan amount differ, but the loan terms, interest rates, additional benefits, and even customer service can vary from lender to lender. With platforms like LendKey, borrowers can compare offers from multiple community lenders to better understand available rates, terms, and borrowing limits. Before applying for private loans, check into the lender’s options and limits to ensure they can meet your needs. To better understand what counts toward your cost of attendance and how much you may be eligible to borrow, you can review your school’s financial aid website or contact your financial aid office directly.

What can borrowing student loans cover?

What exactly is the school-certified cost of attendance? This is the total estimated cost of attending a school for a specific period, and it plays a major role in determining how much you can borrow with student loans, including private loans. The phrase doesn’t just refer to the cost of tuition. Typically, this includes the following:

• Tuition
• Books
• Cost of living
• Meal plans
• Transportation

Because this figure represents your total education-related costs, it is typically the upper limit for how much you can borrow across all loan types combined.

In some cases, the costs may include more than the items noted on this list. For more information about what your school includes in their cost of attendance, please check with your school’s financial aid office web page.

Imagine that your school-certified cost of attendance is $50,000 per year, and you receive $10,000 in financial aid. In this case, you may be able to borrow up to $40,000 through a combination of federal and private student loans, depending on lender requirements and your financial profile.

Where can I utilize student loans?

You cannot exceed the school-certified cost of attendance when taking out student loans. When you take out student loans, there are restrictions on how the funds will be applied.

As a general rule of thumb, you can use these loans to cover all education-related expenses, and that even includes paying for dependent care if you have a child while you’re in school. Student loans are disbursed directly to the school, where the funds are applied to tuition and other charges before any remaining amount is issued to the borrower, unlike personal loans which are typically sent directly to you.

However, to ensure you’re making the most of your loans, you should not use the money to fund non-essentials such as decorating your dorm room, going out to eat, or taking a vacation over spring break.

Is there an amount to borrowing student loans?

To assess how much you need, look at the school-certified cost of attendance, and find out exactly what’s included in that number. Then, make a list of your other expenses. Beyond the room, board, tuition, and books, you need to consider costs such as flying home for Christmas break, renting an apartment in the summer, a laptop, going on a study abroad program, or any other expenses you’re likely to incur while in college.

Then, consider which of these expenses are genuinely essentials and which you can do without. Before borrowing too much money, consider the value of your degree. In many cases, borrowing student loans to get the education you need to launch your career is a lucrative move in a financial sense. However, you don’t want to borrow tens of thousands of dollars and finish college with a degree that doesn’t lead to a career.