Independent undergraduate students can borrow more each year than dependent students can.
Key Takeaways
- File the FAFSA every year, even as an independent student.
- Accept grants and scholarships first, then loans.
- Complete your Entrance Counseling and Master Promissory Note early.
- Borrow only what you truly need and know your repayment plan.
| Year in School | Total Loan Limit | Subsidized Loan Limit |
|---|---|---|
| First Year | $9,500 | $3,500 |
| Second Year | $10,500 | $4,500 |
| Third Year+ | $12,500 | $5,500 |
Graduate and professional students are automatically classified as independent for federal aid purposes and are thus eligible to borrow both Direct Unsubsidized Loans and Grad PLUS Loans, the latter being credit-based federal loans specifically designed to help cover the remaining costs of graduate or professional education not met by other financial aid.
The section below provides a comparative overview of federal student loan regulations as they currently stand prior to July 1, 2026, and those that will take effect on July 1, 2026, pursuant to recent legislative amendments enacted through the “One Big Beautiful Bill”. This comparison clarifies forthcoming policy changes that may impact borrowing limits and eligibility for independent students.
| Feature/Parameter | Current (Pre-July 1, 2026) | New (Effective July, 1 2026) |
|---|---|---|
| Graduate / Professional borrowing via Grad PLUS | Available. Graduate / professional students can borrow a Graduate PLUS loan up to the cost of attendance minus other aid (i.e. no preset fixed cap beyond cost of attendance) | Eliminated for new borrowers. Grad PLUS loans will no longer be available to students whose first disbursement is on or after July 1, 2026. |
| Annual borrowing limit (Graduate / Non-professional) | Through Direct Unsubsidized + Grad PLUS, effectively up to cost of attendance (no strict statutory cap) | $20,500 per year in Direct Unsubsidized for graduate (non-professional) students |
| Annual borrowing limit (Professional / Doctoral / Law / Medical) | Again, via Grad PLUS + Unsubsidized, up to cost of attendance (no fixed statutory cap) | $50,000 per year for professional students (via Direct Unsubsidized, since PLUS is eliminated) |
| Aggregate (lifetime) cap for graduate students / non-professional | The existing “aggregate limit” for graduate and professional combined is $138,500 (including amounts borrowed as undergraduate) under current law (for Direct Unsubsidized) | $100,000 for graduate (non-professional) students (new aggregate limit for these new loans) |
| Aggregate (lifetime) cap for professional students | (Under current law, professional + graduate are under same 138,500 cap, though professional students borrow more via PLUS) | $200,000 for professional students |
| Combined graduate + professional cap | Not separately capped beyond the overall aggregate combined with undergraduate cap ($138,500) under current law | The combined graduate + professional borrowing is limited by the professional cap of $200,000 (i.e. you cannot exceed $200,000 total across graduate + professional) |
| Grandfather / Legacy protection | All borrowers use the same rules; there is no special “new vs old” distinction for Grad PLUS eligibility (so long as they are eligible) | Legacy provision: Students who received a Grad PLUS loan (or first disbursement of Direct Unsubsidized + Grad PLUS) before July 1, 2026 and remain in their same program may continue borrowing under the old rules (i.e. up to cost of attendance via Grad PLUS) through June 30, 2029 (or until program completion) |
| Other lifetime (overall) cap on all federal student loans | None beyond existing aggregate/subsidized/unsubsidized/plus caps (no overall universal cap) | $257,500 lifetime cap on all federal student loans (excluding Parent PLUS) for new borrowers effective July 1, 2026 |
Special Situations to Know
- Unusual family circumstances: If you can’t safely contact your parents or provide their info, your financial aid office can evaluate your case for a dependency override.
- Married students: Include your spouse’s info, even if your parents’ info isn’t required.
- Changing your loan later: You can request a reduction in your loan amount or cancel before funds are disbursed.
Quick FAQs
Q: What makes me an independent student on the FAFSA?
A: You’re 24 or older, married, a graduate student, veteran, parent, or meet certain special circumstances.
Q: Do I still need to complete the FAFSA if I only want federal loans?
A: Yes. The FAFSA is the required form for all federal aid, including federal loans.
Q: Can I include my parents’ info even if I’m independent?
A: No. Once you’re classified as independent, you generally only include your own (and your spouse’s) information.
Q: What if I need more money than my federal loans offer?
A: You can explore private student loans but compare carefully before borrowing.
