A post-secondary education is one of the most valuable assets in the workplace, but it's also one of the most expensive. Most students will need to borrow money to finance a career school, college or graduate education. But how much can you borrow? The answer depends on many factors, including whether you are an independent or dependent student, your financial need and your credit history.

Dependent Students

Dependent undergraduate students, or students who are financially dependent on their parents, may qualify for up to $31,000 total in federal direct loans, unless their parents are ineligible for a Parent PLUS Loan. In addition, loans are available through private lenders; the maximum dollar amount will vary.

Independent Students

Independent undergraduate students, and dependent undergraduates whose parents do not qualify for PLUS loans, may borrow up to $57,500 total in federal direct loans. Further loans may be arranged with private institutions.

Graduate Students

Graduate or professional students may qualify for up to $138,500 total in federal direct loans, in addition to any loans arranged with private lenders.

Federal Direct Loans

To be awarded a federal direct loan, students must submit the Free Application For Student Aid (FAFSA). Subsidized loans are available for those with a demonstrated financial need. Unsubsidized loans are available to all.

Private or Alternative Loans

Private institutions such as banks also offer student loans, with no predetermined maximum. Rates will depend on your credit history.

Tips

Use federal direct loans first before taking on private or alternative loans. Perform a private loan comparison for the best terms. Borrow only as much as you need; every dollar you borrow must be paid back with interest.

Source:

Federal Direct Loans

FAFSA

Private loan comparison

Resource:

FinAid.org: Financial Aid Calculator

U.S. Department of Education: Direct Loan Basics for Students