How much can I borrow? How much can I borrow?

The table below is taken from the Federal Student Aid website and shows how much a student can borrow each year in addition to detailing the aggregate limits for the Subsidised and Unsubsidised Stafford Loan.

Within these limits you can borrow up to the Cost of Attendance (COA) set for your level of study and program type.

Year

Dependent Student (except students whose parents are unable to obtain PLUS Loans)

Independent Students (and Dependent undergraduate students whose parents are unable to obtain PLUS Loans)

First-Year Undergraduate Annual Loan Limit


$5,500—No more than $3,500 of this amount may be in Subsidised Loans.


$9,500—No more than $3,500 of this amount may be in Subsidised Loans.


Second-Year Undergraduate Annual Loan Limit


$6,500—No more than $4,500 of this amount may be in Subsidised Loans.


$10,500—No more than $4,500 of this amount may be in Subsidised Loans.

Third-Year and Beyond  Undergraduate Annual Loan Limit


$7,500—No more than $5,500 of this amount may be in Subsidised Loans


$12,500—No more than $5,500 of this amount may be in Subsidised Loans.

Graduate or Professional Students Annual Loan Limit


Not Applicable (all graduate and professional students are considered independent)


$20,500 (Unsubsidised only)


Subsidised and Unsubsidised Aggregate Loan Limit


$31,000—No more than $23,000 of this amount may be in Subsidised Loans.

$57,500 for undergraduates—No more than $23,000 of this amount may be in Subsidised Loans.

$138,500 for graduate or professional students—No more than $65,500 of this amount may be in Subsidised Loans. The graduate aggregate limit includes all federal loans received for undergraduate study. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As indicated in the above table, Dependent Undergraduate Students whose parents are unable to obtain the Parent PLUS Loan may be assessed for increased limits of the Unsubsidised Loan.

Independent Undergraduate Students, as determined by the FAFSA, may borrow at increased limits as well.

Graduate PLUS Loan, Parent PLUS Loan or private loans are intended to cover remaining costs above any financial aid awarded (limits shown above) and up to your Cost of Attendance (COA).

Loan Fees

Most Federal Student Loans have loan fees that are a percentage of the total loan amount. The loan fee is deducted proportionately from each loan disbursement you receive. This means the money you receive will be less than the amount you actually borrow. For example, Stafford loans disbursed on or after 1 October 2020 require a 1.057% origination fee which is paid at the time of disbursement and 98.943% of the gross loan amount will be disbursed to your student account. You are responsible for repaying the entire amount you borrowed and not just the amount you received.

Loan Type

First Disbursement Date

Loan Fee

Direct Subsidised Loans and Direct Unsubsidised Loans

On or after 1 October 2020 and before 1 October 2021

1.057%

On or after 1 October 2019 and before 1 October 2020

1.059%

Direct Plus Loans

On or after 1 October 2020 and before 1 October 2021

4.228%

On or after 1 October 2019 and before 1 October 2020

4.236%

 

 

 

 

 

 

 

 

 

 

 

Interest Rates

You can visit Federal Student Aid to find out the interest rates for each loan type. 

You will also be able to find on Federal Student Aid detailed information regarding interest rates, repayment, deferments, forbearance, forgiveness programmes and other questions.