Education is everyone’s fundamental right. Still, it is expensive and not everyone can afford to pay costs of higher education. This why many people start working rather than studying at a young age. Those who are interested in getting a bachelor’s degree, they save money for college. While for some it is not possible to save a huge amount.
An ideal solution for getting a higher education is obtaining a student loan. For those who don’t know about a student loan, you are at the right place. We have shed light on student loans and how much amount you can borrow.
What is Student Loan?
To simply put it, it is a loan borrowed by students to cover college costs. The students can borrow the amount from banks or the federal government. The students are obligated to repay the borrowed amount over the years. Additionally, the students have to pay interest on the borrowed amount as well.
For students, this is considered a good debt. It is because the financers are investing in your future. When borrowing money, you need to keep in mind that too much good can also be bad for you. This is why you must only borrow the money you need not more than that.
Types of Federal Student Loans
There are different types of federal student loans.
- Direct unsubsidized loans
- Direct subsidized loans
- Direct Consolidation loans
- Direct PLUS loans
Here are the most common types of student loans.
Subsidized Student Loans
This type of student loan is great for covering college costs. This is because the terms of this loan are better than unsubsidized loans. The Direct Subsidized loans are offered to undergraduate students. The school decides the amount of the loan. Keep in mind the borrowed amount is in accordance with financial need.
This type of student loan is offered to both, undergraduate and graduate students. The amount of the loans is decided by the school depending on the other financial aids you get and cost of attendance.
What is the Maximum Student Loan Amount for Lifetime?
One of the most common questions students ask is, how much money can they borrow. There are different types of student loans, some loans enable you to borrow the full cost of college. However, the borrowed amount can be reduced because of other student financial aids. On the other hand, some loans have lower fixed annual and cumulative limits.
Here is the aggregate maximum loan limit you can get.
- The dependent students can borrow only $23,000 as a loan.
- For independent students, the borrowed amount is also $23,000.
- The Graduate students can borrow loan up to $65,500.
As far as the eligibility period is concerned, the students can borrow subsidized loan keeping in mind the time limitation. It should not surpass 150% length of the borrower’s educational program. While for unsubsidized loans, there is no time limit.
In the end, get a student loan and get higher education to have a better and bright future.