The maximum amount of student loans you can borrow depends on your year in college, dependency status, cost of your program, degree type and other factors.
For the 2026–27 school year:
- Dependent students can borrow up to $31,000 and independent students can borrow up to $57,500 for undergraduate.
- Graduate students can borrow up to $20,500 or $50,000 in federal direct loans annually depending on their program.
- Parents with federal PLUS loans can borrow up to a $20,000 annual cap and a $65,000 lifetime cap per dependent.
Some borrowers will face lower borrowing caps starting in the 2026-27 school year, as a result of President Donald Trump’s 2025 budget reconciliation bill. The changes will primarily impact graduate students and parent PLUS loan borrowers.
Private student loan maximums depend on the lender. Generally, your borrowing is capped at your school's total cost of attendance, less other financial aid you may have received.
» MORE: How to pay for college
Federal student loan maximums for 2026-27
There are three main types of federal student loans, each with a different borrowing limit:
Direct subsidized loans. Up to $5,500 per year, depending on year in school. Must be an undergraduate student who demonstrates financial need to qualify. Interest does not accrue while the student is in school and during deferment periods.
Direct unsubsidized loans. Up to $12,500 per year, depending on year in school and dependency status. Available to all U.S. citizen undergraduate, graduate and professional students, regardless of financial need. Interest accrues while the student is in school and during deferment periods.
Parent PLUS loans. Up to $65,000 per dependent over a lifetime. Available to parents borrowing on behalf of their undergraduate kids. Interest accrues while a student is in school or during deferment periods.
Graduate loans. Limits are determined by program and professional degree programs have higher limits. Professional degrees have a limit of $50,000 annually and $200,000 cumulatively. Other graduate degrees have loan limits of $20,500 annually and $100,000 overall.
Current federal student loan borrowing limits: direct loans
Year in school | Limit for dependent students | Limit for independent students |
|---|---|---|
First year of undergrad | $5,500. (Up to $3,500 of this amount may be in subsidized loans.) | $9,500. (Up to $3,500 of this amount may be in subsidized loans.) |
Second year of undergrad | $6,500. (Up to $4,500 of this amount may be in subsidized loans.) | $10,500. (Up to $4,500 of this amount may be in subsidized loans.) |
Third year and beyond of undergrad | $7,500. (Up to $5,500 of this amount may be in subsidized loans.) | $12,500. (Up to $5,500 of this amount may be in subsidized loans.) |
Grad or professional school: any year | N/A. (All grad students are considered ‘independent’ for financial aid.) | $50,000 annually for professional degrees. $20,500 annually for other graduate programs. (Unsubsidized loans only.) |
Lifetime maximum for undergraduate | $31,000 (Up to $23,000 of this amount may be in subsidized loans.) | $57,500 (Up to $23,000 of this amount may be in subsidized loans.) |
🤓Nerdy Tip
Max out federal subsidized and unsubsidized direct loans before tapping PLUS loans, which have higher student loan interest rates and fewer repayment options.Changes to federal student loan borrowing limits starting July 1, 2026
Trump’s budget bill changed student loan borrowing limits in a few key ways:
- The graduate PLUS loans program has ended. Borrowers who start a graduate degree program on or after July 1, 2026 will only have access to direct loans. These are not available up to the cost of attendance. Instead, they have a maximum of $100,000 or $200,000, depending on degree type.
- Parent PLUS loans will no longer be available up to a student’s cost of attendance. Instead, they will be capped at $20,000 per year, and $65,000 total, per child.
Loan limits for federal direct undergraduate loans — both the unsubsidized and subsidized versions — will not change.
Note for graduate borrowers in school: If you start a graduate program before July 1, 2026, you can still get graduate PLUS loans for the duration of your degree program, or for up to three years — whichever period is shorter.
Note for parent PLUS borrowers with a kid in school: If you borrow a parent PLUS loan for your child prior to July 1, 2026, you can continue to borrow parent PLUS loans up to cost of attendance for the duration their degree program, or for up to three years — whichever period is shorter.
How to apply for federal loans: To apply for federal student loans, you must submit the Free Application for Federal Student Aid (FAFSA) for each year you are in school. NerdWallet's FAFSA guide walks you through the process.
If you’re a dependent student and your parents aren’t eligible for direct PLUS loans — for example, if they have an adverse credit history — you may be eligible for additional unsubsidized loans.
Private student loan borrowing limits
Private student loan limits vary by lender. Many lenders cap the amount you can borrow at your school’s total cost of attendance, less other financial aid you may have received. Other lenders set aggregate limits for undergraduate and graduate loans.
» MORE: Best private student loans
Max out federal student loan borrowing before turning to private student loans. Federal loans have protections that private loans don't, including income-driven repayment plans and loan forgiveness programs.
How much should you borrow for college?
Just because you can borrow up to your school's total cost of attendance doesn’t mean you should. To keep higher education affordable, calculate how much you should borrow for college based on your expected future earnings, and aim to keep your student borrowing below that amount.
If you take out additional student loans each year you are in school, your total debt will increase. To manage this debt, maintain a budget and keep track of how much you’re borrowing. You can check your federal student loan balance at studentaid.gov.
» What you’ll pay after graduation: Calculate monthly student loan payments
