Subsidized Stafford Loans

• The federal government caps a student's subsidized Stafford loan amount each year. Because subsidized Stafford loans are awarded based on financial need, not all students who qualify will receive the maximum loan amount. For undergraduate education, students can receive up to $3,500 for the first year, $4,500 for the second year and $5,500 for each subsequent year. The total subsidized loan amount for undergraduate studies cannot exceed $23,000. Graduate students can receive up to $8,500 per year, but total subsidized Stafford loan amounts, including undergraduate loans, cannot exceed $65,500.
  
  

Unsubsidized Stafford Loans

• Undergraduate students can borrow up to $5,500 for the first year, $6,500 for the second year and $7,500 for each additional year in Stafford loans, not to exceed a total of $31,000 for undergraduate education. If a student receives a subsidized Stafford loan, he should subtract that amount from the limit to calculate his unsubsidized eligibility. Students who do not receive subsidized loans are eligible for the full amount. Financially independent undergraduates and those whose parents do not qualify for a PLUS loan can borrow up to $9,500 the first year, $10,500 the second year and $12,500 each additional year, for a total of no more than $57,500. Graduate students can borrow up to $20,500 per year, but their total Stafford borrowing cannot exceed $138,500.
  
  

Perkins Loans

• The federal government subsidizes all Perkins loans, which they issue to high-need students. Undergraduate students can receive up to $5,500 per year, up to a total of $27,500. Graduate students can get up to $8,000 per year, but their total Perkins debt, including loans from undergraduate years, must be no more than $60,000.
  
  

Other Student Loans

• Other sources for student loans include private lenders and, for graduate students, government-issued PLUS loans. The limit on these loans is not a fixed dollar amount, but rather depends on how much other aid a student has received and how much the college or university costs. Calculate the maximum amount by getting the cost of attendance from the school and subtracting all other types of aid, including grants, scholarships, federal work-study and loans.