Federal Direct loans come with set borrowing limits, which are dependent upon a number of factors. Keep reading to learn the federal student loan limits for the 2021-22 school year. ( iStock )
When it comes to financing a college education, federal Direct loans are a good first choice. They come with a relatively low 3.73% interest rate, as well as federal protections like economic hardship deferment and income-driven repayment plans. But Direct loans can be restrictive, since you can only borrow up to a certain amount during the course of your studies.
Students who need additional financing to cover expenses typically have two borrowing options: Direct PLUS loans and private student loans
Keep reading to learn more about the federal borrowing limits for the upcoming school year, and consider your options if you need additional loans to meet your financial obligations while you’re in school.
Rising college students who plan to borrow private student loans can shop around and compare rates on Credible without a hard credit inquiry.
The amount of money a student can borrow from the federal government is determined by their university’s financial aid department, up to a certain limit set by the U.S. Department of Education.
The limit on federal student loans varies depending on whether you’re a dependent or independent student. Dependent undergraduate students are those whose parents can feasibly help with the cost of education or borrow on a student’s behalf to help them pay for their education. Dependent online payday NC undergraduates tend to have lower loan limits:
- First year: $5,500
- Second year: $6,500
- Third year and beyond: $7,500
Independent students are individually responsible for covering the cost of their education. Continue reading