FAFSA Student Loan Limits Every Family Needs to Know #fafsa #collegeadvice #financialaid #highschool

Very important financial aid information for students applying to college. Here is how much you can actually borrow in student loans.

When students apply for financial aid through the FAFSA, there are strict limits on how much they can borrow in federal student loans. These limits are set by the government and do not change based on the cost of the college.

For most students, the loan limits are $5,500 for the first year, $6,500 for the second year, and $7,500 for the third and fourth years. Even if a student takes a fifth year, the maximum total amount they can borrow is $31,000.

There is one situation where these limits increase. If a parent applies for a Parent PLUS loan and is denied, the student becomes eligible for higher federal loan amounts.

In that case, the student can borrow $9,500 in the first year, $10,500 in the second year, and $12,500 in the third and fourth years. With these increased limits, the maximum a student can borrow is $57,500.

Because federal student loans are capped, families may need to explore other options if college costs exceed financial aid and loan limits. This is when private loans may enter the conversation.

Understanding student loan limits helps families avoid surprises when choosing a college. If you need help reviewing costs or understanding loan options, reach out.

Let College Help Squad be part of your process.