The total price tag: Cost of attendance. Funding options: Federal vs. 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. The maximum you can borrow depends on your year in school, your status as a dependent or independent student, and the type of loan. There are three main types of federal student loans : Direct subsidized, direct unsubsidized and direct PLUS.
Subsidized loans are for undergraduates only, while unsubsidized loans are available to both undergraduates and graduate students. There are both annual and aggregate loan limits for these loans. The aggregate limit is the total amount of federal student loan debt you can take on throughout your undergraduate and graduate-level studies. If you reach your total limit, you can take out additional federal student loans if you first pay down your outstanding debt. Graduate and professional students unsubsidized only.
PLUS loans are available to graduate and professional students, and to parents of dependent undergraduate students. There are no specific caps on PLUS loan borrowing. The maximum amount of PLUS loans you can take out is the school's cost of attendance minus other financial aid you receive or your child receives.
Stafford Loans are available for undergraduate and graduate students and come from Direct Stafford Loans made by the U. Department of Education. Direct Stafford Loans include the following types of loans:. If you are eligible for a subsidized Stafford loan you will not be charged interest while you are in school on an at least half-time basis, during a grace period of up to six months after you are no longer enrolled on at least a "half-time" basis, or during certain defined deferment periods.
The Federal government pays subsidizes the interest during these periods. An unsubsidized loan is not awarded on the basis of need. For unsubsidized loans, you will be charged interest from the time the loan is disbursed until it is paid off in full. However, you can choose to defer payment of interest while you are in school and during any grace or deferment period.
However, if you allow interest to accrue accumulate during these periods, it will be capitalized. This means that interest will be added to the principal amount of your loan, and additional interest will be based on that higher amount.
Credible Operations, Inc. NMLS , is referred to here as "Credible. So, exploring your other options like federal PLUS Loans and private student loans can help you fill that gap. Private student loan limits can depend on your ability to repay, but many private lenders will cover up to the full cost of attendance.
Federal loan limits depend on whether your parents are supporting you or not, and how far along you are in school. Students and families who have hit their limits on the more affordable federal student loans often turn to PLUS loans. The cost of attendance includes not just your tuition and fees, but room and board, books, supplies, and transportation.
Private Student Loans. Limits on private student loans depend on your ability to repay a loan. Types of Student Loans. What Loans Cost. Decoding Student Aid Offers. Best Student Loans. Managing Loans During College. Loan Basics Student Loans. Table of Contents Expand. How Much Can You Borrow? Federal Direct Student Loans. Private Student Loans. Annual and Aggregate Loan Amounts. Loan Eligibility by Type.
What are the three main types of federal student loan? What are PLUS loans? What about private student loans? Bottom Line. Loan limits are based on type of loan, year in school, and cost of attendance. Annual and cumulative limits both impact the amount you can borrow. Article Sources. Investopedia requires writers to use primary sources to support their work.
These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
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