 TITLE: How Much Can I Borrow in Student Loans? CONTENT: Federal Student Loans\n---------------------\nLoans from the U.S. Department of Education tend to have lower interest rates than those from private lenders. They also have more flexible payment options (including the possibility of loan forgiveness).\n**Direct (or Stafford) subsidized and unsubsidized loans** are fixed-rate, which means the interest won't change during the life of the loan. However, they differ in some ways:\n*   **Subsidized loans** are for those who demonstrate financial need. A huge advantage to these loans is that the federal government pays the interest while you're in school if you're attending classes at least half-time, and for the first six months after you leave school (known as the grace period). The government also covers the interest if you postpone (defer) repayment.\n*   **Unsubsidized loans** don't require you to prove financial need. However, they do require you to pay the interest while you're in school and during grace periods and deferment. If you don't pay the interest during that time, it gets added to your principal loan amount after your grace period or deferment ends, costing you more over the life of the loan.\nNeither type of direct loan takes credit history or income into account. You will have to pay an origination (processing) fee of 1.062% of the loan total. This rate may change after October 1, 2019. For current interest rates, see the table below.\n**Direct PLUS and parent PLUS loans** are available to grad students and to the parents of both undergraduate and graduate students. You don't need a good credit history to get these loans. In fact, even someone with an adverse credit history may be able to obtain a PLUS loan by getting a cosigner, taking an online credit counseling program, or proving that the adverse issues were due to [certain types of extenuating circumstances](;_ga=2.122374731.1161473596.1553526489-1457646683.1553526489#docExt-header).  \nThe origination fee for PLUS loans is currently just under 4.25%, and the interest rate is higher than on direct loans.\nLoan limits for each type of direct loan depends on whether the student is a dependent (listed as a dependent on federal and state income tax returns or receiving substantial financial support from a parent, spouse or guardian) or independent (not listed as a dependent or not receiving substantial support). For current loan limits on federal student loans, see below. END