The actual amount you can borrow from a federal student loan increases with the number of years you are in school. It is based on the assumption that as you invest more time and energy into your education, your risk of dropping out dwindles.
Tip:Ask if the school will accommodate a flexible payment plan or if they accept volunteer hours towards payment.
Federal Student Loans
Up to $12,500 annually and $57,500 total for undergraduates
Up to $20,500 annually and $138,500 total for graduates
While many private lenders will allow you to borrow up to the total cost of attendance, the total amount of a federal student loan will vary based on the lender, your major, your credit score and if you have a co-signer. Keep in mind that federal loans offer protections that private loans don’t, including income-driven repayment plans and loan forgiveness programs.
Private Student Loans
From $75,000 to $120,000 for undergraduate students
From $150,000 to $300,000 for graduate or professional students
Private student loans are based on your creditworthiness. The lender evaluates your and your co-signer’s credit, along with other information you provide on your application.
Graduate and professional students enrolled in health care programs (such as becoming a doctor) may receive additional loan amounts.
There Are Many Types of Student Loans
The two main types of student loans are federal and private. Within each type are subsets that might appeal to you based on your credit history, financial need, and other factors.
Federal loans were established to help students with limited funds, or a poor credit history, receive a good education. Private loans offer customized options to students with a strong credit history.