I hope everyone had a wonderful weekend. I had a blast in my friend’s wedding in Savannah, Georgia. There is nothing like seeing two of your friends take that next step. In today’s post I will be going over the annual and aggregate lifetime limits for federal student loans. You didn’t think you could get student loans forever did you?
As a college student you can only receive a certain amount of federal loans each school year. It depends on your classification and also whether you’re a dependent or independent student. A dependent student is an unmarried student under 24 with no dependents, who still has access to parental support. An independent student is at least one of the following; 24 years old, married, graduate student, a veteran, a member of the armed services, an orphan or someone with legal dependents other than a spouse. I will start off with the annual limits for dependent undergraduate students.
The amounts are for all dependent students except the ones who were unable to borrow the PLUS loan.
Freshman Year – $5500 (maximum $3500 subsidized)
Sophomore Year – $6500 (maximum $4500 subsidized)
Junior & Senior (each year) – $7500 (maximum $5500 subsidized)
Here are the amounts for the independent undergraduates. This also includes dependent undergrads whose parents are unable to borrow a PLUS Loan.
Freshman Year – $9500 (maximum $3500 subsidized)
Sophomore Year – $10,500 (maximum $4500 subsidized)
Junior & Senior (each year) $12,500 (maximum $5500 subsidized)
The amount for graduate and professional students is $20,500 for each year (unsubsidized only). That is a lot of money.
Below are the Lifetime limits.
Dependent Undergrads – $31,000 (maximum $23,000 subsidized)
Independent Undergrads – $57,000 (maximum $23,000 subsidized)
Graduate & Professional – $138,500 combined debt between undergraduate and graduate $65,000 (maximum subsidized)
It’s a good thing that they have those limits. If not, people would be in a lot more debt. $138,500 is a lot of money to pay back. I’m glad I don’t have that much to pay back. Have you guys reached your loan limit yet? Did you even know there was a loan limit?