How Much Can You Borrow in Student Loans?

Federal Student Loan Limits

Federal loan limits depend on your education level, year in school and dependency status. While undergraduate loan limits have not changed as a result of the OBBBA, other limits, including for graduate student and parent borrowers, have.

Note that current borrowers may qualify for an "interim exception." If you took out a direct loan for your current program before July 1, 2026, and stay continuously enrolled, you can keep borrowing under the older limits for up to three more academic years or until you finish your program, whichever comes first.

Here's a quick glance at the current federal student loan limits, along with what changed beginning July 1, 2026:

Federal Student Loan Limits

Changes to Federal Loan Limits Starting July 2026

The One Big Beautiful Bill Act (OBBBA) introduced several changes to federal loan limits for new borrowers on July 1, 2026. Here's what new borrowers can expect going into the 2026-2027 academic year:

• Lifetime borrowing cap: A new $257,500 lifetime aggregate limit applies to all federal student loans a student takes out, excluding parent PLUS loans.
• End of grad PLUS: New graduate and professional students will no longer be eligible for grad PLUS loans. Previously, these loans let borrowers cover up to their full cost of attendance after maxing out other federal aid.
• Parent PLUS caps: Parent PLUS loans will be limited to $20,000 per year and $65,000 in total per dependent student. There's no longer an option to borrow up to the full cost of attendance.
• New graduate and professional limits: Graduate students can borrow up to $20,500 per year with a $100,000 aggregate cap, and professional students can borrow up to $50,000 per year with a $200,000 cap.
• Loan proration: Students enrolled less than full time will receive a prorated loan amount based on their enrollment intensity. For example, a half-time graduate student would be eligible for roughly half the standard annual limit.

Undergraduate Federal Loan Limits

Undergraduate annual and aggregate loan limits aren't changing under the OBBBA. Dependent undergraduates can borrow up to $31,000 in federal direct loans, with no more than $23,000 in subsidized loans. Independent undergraduates and dependent students whose parents can't qualify for parent PLUS can borrow up to $57,500, with the same $23,000 subsidized cap.

Tip: If you qualify, always accept subsidized loans before unsubsidized loans. Since the government covers interest while you're in school, you'll graduate owing less.

Graduate Federal Loan Limits

This is where the biggest changes are happening. For new graduate and professional borrowers starting July 1, 2026:

• Graduate students: Can borrow up to $20,500 per year in direct unsubsidized loans, with a $100,000 aggregate limit. Undergraduate loans don't count toward this limit.
• Professional students: Students in eligible programs, such as medical, dental, veterinary or law, can borrow up to $50,000 per year, with a $200,000 aggregate limit.

The grad PLUS program is no longer available for new students. However, existing students can still use grad PLUS loans to borrow up to their total cost of attendance, minus other aid received, for up to three academic years.

Be aware: With grad PLUS gone, students in expensive programs like medical or law school may need private student loans to cover the gap between federal aid and the total cost of attendance.

Private Student Loan Limits

Private student loans from banks, credit unions and online lenders don't have federally set caps. Each lender sets its own annual and aggregate limits based on factors like your credit history, your school's cost of attendance and your degree program.

Many private lenders cap borrowing at the school's certified cost of attendance minus any other financial aid you've received, but aggregate limits vary widely from one lender to another. Many also offer higher caps for graduate, medical, dental and law school students. Here are just a handful of examples:

If you don't have established credit or a steady income, adding a cosigner with good credit can help you qualify or get a better interest rate.

How Much Should You Borrow in Student Loans?

A common rule of thumb is to keep total student loan debt below your expected first-year salary after graduation. It's a useful starting point, but not a perfect rule.

Predicting a starting salary is tricky if you haven't picked a major or career path. The Bureau of Labor Statistics' Occupational Outlook Handbook can give you a sense of typical pay in fields you're considering. Other factors to weigh include:

• Cost of attendance: Your school publishes an estimated cost that includes tuition, fees, housing, food and books. Subtract grants, scholarships and savings to find how much you may need to borrow to bridge the gap.
• Expected monthly payment: You can use the Federal Student Aid Loan Simulator to estimate future payments. A common guideline is to keep total monthly debt payments at or below 10% of your projected gross monthly income.
• Debt-to-income ratio: After graduation, lenders will use your debt-to-income ratio (DTI) to evaluate you for credit cards, auto loans and mortgages. Most mortgage lenders want a back-end DTI below 43%.
• Career plans: Work that qualifies for federal loan forgiveness or a loan repayment assistance program can give you more flexibility with federal borrowing.

What Happens if You Hit Student Loan Limits?

If you max out federal direct loans before finishing school, you have several ways to cover the shortfall:

• Request a financial aid reevaluation. If your family's financial situation has changed since you filed the FAFSA, you can file a financial aid appeal letter. Depending on the circumstances, you may qualify for more grant aid.
• Apply for scholarships. Scholarships don't have to be repaid, and many are available beyond freshman year through local organizations, employers and professional associations. Reach out to your school's financial aid office to learn about opportunities.
• Set up a tuition payment plan. Many colleges let you split tuition into monthly installments without interest—though you may be on the hook for an enrollment fee.
• Work part time or take a work-study job. Earning income while in school can reduce how much you need to borrow.
• Consider private student loans. Private student loans can cover gaps once federal options are exhausted, but they generally have higher rates and fewer borrower protections.

Frequently Asked Questions

The Bottom Line

Federal student loan limits aim to prevent borrowers from taking on unmanageable debt, but the OBBBA's new caps and the elimination of grad PLUS will likely push many students to explore additional funding. Budget carefully, borrow only what you need and factor in your expected starting salary and monthly payment before signing on the dotted line.

Once repayment begins, on-time payments can help build your credit. You can check your credit report and FICO^® Score^Θ for free from Experian to track your progress.