Loan Limits

Loans are borrowed money you must PAY BACK to the federal government. Be smart, borrow what you can afford to repay. Failure to make payments and defaulting on your student loan can be the most damaging mark on your credit report, worse than bankruptcy.

  1. You cannot discharge a student loan in bankruptcy. You can file bankruptcy but not get rid of a student loan in bankruptcy court. You will be required to repay your student loan.
  2. Loans can build credit if you have no credit.
  3. Loans can rebuild credit if you have bad credit by making your payments.
  4. BUT loans can ruin your credit if you fail to make your payments.

 

Students attending a 2-year community college may borrow up to "Second Year" annual loan limits.

Annual (single year) and Lifetime Aggregate (maximum overall for undergraduate) Loan Limits a student may borrow up to:

1st Year (0 to 29 credits)

Dependent Undergraduate - $5,500 

No more than $3,500 of this amount may be in subsidized loans.

Independent Undergraduate - $9,500

No more than $3,500 of this amount may be in subsidized loans.

 

2nd Year (30 or more credits)

Dependent Undergraduate - $4,500 

No more than $4,500 of this amount may be in subsidized loans.

Independent Undergraduate - $10,500

No more than $4,500 of this amount may be in subsidized loans.

 

Lifetime Limits

Dependent Undergraduate - $31,000 

No more than $23,000 of this amount may be in subsidized loans.

Independent Undergraduate - $57,000

No more than $23,000 of this amount may be in subsidized loans.