$57,500 for undergraduates-No more than $23,000 of this amount may be in subsidized loans. $138,500 for graduate or professional students-No more than $65,500 of this amount may be in subsidized loans. The graduate aggregate limit includes all federal loans received for undergraduate study.
The maximum Federal Pell Grant award is $7,395 for the 2024–25 award year (July 1, 2024, to June 30, 2025). your plans to attend school for a full academic year or less.
Undergraduate federal loan limits
You may be considered independent if you are over the age of 24, a military veteran, married or financially support yourself. Independent students can borrow $9,500 to $12,500 annually and up to $57,500 total.
Student Loan Interest Deduction
You can take a tax deduction for the interest paid on student loans that you took out for yourself, your spouse, or your dependent. This benefit applies to all loans (not just federal student loans) used to pay for higher education expenses. The maximum deduction is $2,500 a year.
Overall, only 1% of all U.S. adults owed at least $100,000. Young college graduates with student loans are more likely than those without this kind of debt to say they struggle financially.
There are no FAFSA income limits, meaning there's nothing stopping even the richest college students from submitting a FAFSA. Thanks to the so-called “Simplified FAFSA” unveiled for the 2024-25 academic year, filling out the form is faster and easier than ever.
Aggregate (Lifetime) Limit - per program
As a result, the maximum annual amount for 2022-2023 is $3,772. The annual amount listed above is based on full-time enrollment. Review Understanding Enrollment Requirements for details on how your enrollment status impacts the amount of the grant you may receive.
Answer: Federal student loans have both annual and aggregate student loan limits. If you have reached your annual loan limit, you will need to wait until next year to borrow more. If you have reached your aggregate loan limit, you can discuss your situation with your financial aid office.
Graduate students are considered independent and have a lifetime loan limit of $138,500 for federal Subsidized and Unsubsidized loans. No more than $65,500 of this amount can be in subsidized loans. Annual limits for Direct Unsubsidized Loans for graduate students are set at $20,500.
There's a general rule floating around stating that your total student loan balance should not exceed your expected starting salary out of college. So if, based on your desired profession, you anticipate making $50,000 your first year after college, you wouldn't want your student loan balance to exceed $50,000.
If your grade level changes in the middle of the academic year, you may qualify for higher annual loan limits. You would then be eligible to borrow the difference between the new annual loan limit and the amount you already borrowed during the same academic year. Similar rules apply to transfer students.
Pell Grant Lifetime Limits
There is a maximum amount of Federal Pell Grant funds you can receive over your lifetime. You can receive the Pell Grant for no more than 12 terms or the equivalent (roughly six years) or 600%. This is called the Federal Pell Grant Lifetime Eligibility Used (LEU).
Independent undergraduates and dependent students whose parents are unable to obtain PLUS Loans: $57,500 (including up to $23,000 subsidized). Graduate and professional students: $138,500 (or $224,000 for certain medical training) including undergraduate borrowing (including up to $65,500 subsidized).
Every year, the federal government updates the maximum Federal Pell Grant award amount. For the 2024–25 award year, the maximum Pell Grant award is $7,395.
For federal direct student loans, undergraduates can borrow up to $12,500 annually and up to $57,500 total. Graduate students can borrow up to $20,500 annually and $138,500 total, including their undergraduate borrowing. Federal PLUS loans are capped at your school's total cost of attendance.
Technically, no income is too high for the FAFSA. The U.S. Department of Education recommends filling out the FAFSA yearly, regardless of income. However because FAFSA is needs-based aid, those from lower-income families with a greater financial need get access to more financial aid.
Grades Slipped or Haven't Completed Enough Credits. You need to make satisfactory academic progress in college or career school in order to keep getting federal student aid. Talk to your school about whether you can appeal the decision that made you ineligible to continue receiving federal student aid.
A common myth is that students from high-income families won't qualify for FAFSA funding. In reality, there's no maximum income cap that determines your eligibility for aid. Although your earnings are a factor on the FAFSA, only some programs are based on need.
What is considered a lot of student loan debt? A lot of student loan debt is more than you can afford to repay after graduation. For many, this means having more than $70,000 – $100,000 in total student debt.
Credible takeaways. Graduate students can borrow as much as $20,500 per year in federal Direct Unsubsidized Loans, with a lifetime limit of $138,500, including undergraduate loans. Federal graduate PLUS loans provide financing beyond Direct Unsubsidized Loans but they require a credit check.
A large cadre of research now shows that student debt disproportionately burdens Black borrowers. Not only are Black students more likely to borrow, and to need to borrow more, but they struggle much more with paying back their loans.