Can I Take Out More Student Loans During The Semester

You can take out a student loan at any time during the semester, but it’s not always a good idea.

The first thing to consider when thinking about taking out student loans during the semester is whether or not you have enough money to pay for your expenses without borrowing more. Taking out too much debt can cause stress and anxiety, which is never good for your mental health or your grades. Plus, if you borrow too much money and then drop out of school, you’ll still have to pay back all that money—and then some!

If you do decide to take out more student loans during the semester, make sure that you understand all of the details of what you’re signing up for. For example: how much interest will be added to the total cost of my loan? Will there be additional fees? What happens if I can’t afford my monthly payments? It’s important that these questions are answered before signing anything official—and if they aren’t answered satisfactorily when asked directly by an employee at your bank or financial institution, find someone else who can help!

how much student loan can i get per semester

As the cost of postsecondary education goes up, you’ll likely need to apply for financial aid to help you pay for college, such as student loans. Financial analysts recommend all college-bound students use the Free Application for Federal Student Aid (FAFSA) to figure out how much financial aid they can get and for which aid they qualify. In many cases, students qualify for more financial aid than expected.

The FAFSA uses information about your (and your family’s) assets to create a number called the expected family contribution (EFC). Then, this number is subtracted from the cost of attendance (COA) for each school to which you applied and were accepted. The difference creates your FAFSA score, which schools use to offer need-based financial assistance from both grant programs and student loans.

The federal government offers several forms of financial aid, which schools disburse in different amounts. You can use the annual federal guidelines to determine the maximum amount of aid for which you qualify.

Federal Sources of Financial Aid per Year

Federal financial aid programs are provided through the U.S. Department of Education (DOE). Congress votes on how much money each program receives every year, and what the minimum and maximum amounts of financial support can be. 

• Pell Grant: This is a need-based award that is, essentially, “free money,” so you do not have to pay it back. For the 2019–20 academic year, individual students can receive a maximum of $6,195.
  
  Pell Grants are disbursed per semester if your school uses the semester system. For example, if you receive $2,000 total in Pell Grants for the year, you will get $1,000 per semester.
  
  The amount you receive is adjustable based on your specific needs, so you may receive less than this amount. As long as you qualify, you can take out 100% of your award every year for six years, totaling 600% of the Pell Grant amount you qualify for. Thanks to Year-Round Pell, you can also take out another 50% to pay for a summer semester, so you could qualify to take out 150% of your award for one year.
  
• FSEOG: Federal money goes to participating colleges and universities for the Federal Supplementary Education Opportunity Grant (FSEOG), which can give you between $100 and $4,000 per year, depending on your financial need. Not all schools participate in this program.
  
  Like the Pell Grant, this award is split per semester. For example, if you receive $300 for the year, you will get $150 per semester.
  
• TEACH grant: The Teacher Education Assistance for College and Higher Education (TEACH) grant provides financial aid to needy students who specifically want to become educators when they graduate from college. There are different amounts awarded to different education levels.
  
  • Undergraduates can receive up to $16,000 toward their degree. This is $4,000 per year or $2,000 per semester. 
  • Graduate students can receive up to $8,000 to continue their education. For a two-year master’s degree, this is $4,000 per year or $2,000 per semester. 

This grant has specific rules about working in certain fields and following certain classwork paths to become a certified teacher upon graduation. If you do not meet these standards, your grant will be revoked, and you may have to pay some or all of it back. 

• Student loans: There are several loan programs provided by the federal government, including:
  
  • Direct subsidized loans
  • Direct unsubsidized loans
  • Direct PLUS loans, both for graduate students and parents with dependent undergraduates
  • Direct consolidation loans

Loan amounts vary based on several factors, like:

• Whether you are a dependent or independent undergraduate student
• Whether you are a graduate or professional student
• Whether you have defaulted on student loan payments in the past
• Whether you have a significant financial need, qualifying you for subsidized loans

How much you can take out also depends on your academic year in school. Here are the current amounts set by the federal government: 

• Undergraduate first year: Dependent undergraduates (18 to 24 years old, typically) can take out $5,500 total in student loans, of which $3,500 can be subsidized loans. Independent undergraduates can take out $9,500, with $3,500 of that total in subsidized loans. This is $2,750 per semester or $4,750 per semester, with $1,750 in subsidized loans.
  
• Undergraduate second year: Dependent undergrads can take out $6,500 total ($3,250 per semester), of which $4,500 ($2,250 per semester) can be subsidized. Independent undergrads can take out $10,500 ($5,250 per semester), with $4,500 of that being subsidized loans.
  
• Undergraduate third year, fourth year, and remaining years: Dependent students can take out $7,500 ($3,750 per semester), of which $5,500 ($2,750 per semester) can be subsidized loans. Independent undergraduates can take out $12,500 ($6,250 per semester), with $5,500 of that being subsidized loans.
  
• Graduate/professional first year: Graduate and professional, trade, or continuing education students can take out up to $20,500 ($10,250 per semester), all in unsubsidized loans.
  
• Graduate/professional second year: Students can take out another $20,500 in their second year, all in unsubsidized loans.
   
• Graduate/professional further years: If a graduate or professional student continues for another year to obtain their degree, they can take out another $20,500 in unsubsidized loans. 

There are lifetime student loan maximums. Dependent undergraduate students who attend school to receive a bachelor’s degree can take on a maximum of $31,000 in student loan debt, with $23,000 of that amount in subsidized loans.

Independent undergraduates can take out $57,500 total, of which $23,000 can be in subsidized loans.

Graduate and professional students can take out $138,500 total in student loans, of which $65,000 total can be in undergraduate loans. 

You may also qualify for the federal work-study program, which helps you find a job, either on or off-campus, and pays you upfront so you can apply the income to your education costs. The amount you receive through this program varies by school. 

How to Get the Most Financial Aid per Semester

Federal financial aid is calculated a little differently by each school, but they all use your FAFSA number to determine your specific financial need. You should always provide accurate and truthful information on your FAFSA. Lying about income or moving money around can cause you to lose your award and be barred from receiving federal financial aid for the rest of your education.

There are several ways to get enough financial aid to cover the cost of your post-secondary education, either from the federal government, your state government, and/or your school. 

• Find merit-based scholarships to apply for, both through your college and from nonprofits or for-profits.
• Complete your FAFSA information early since some money is first-come, first served.
• Research other sources of income, like private student loans.

Need-based aid and federal student loans are the major sources of monetary support for students all over the United States, but they are not the only options to help you get through school. You could qualify for state-based grants and scholarships, which also use the FAFSA to determine your eligibility. Hobbies, good grades, and many other skills can help you qualify for merit-based scholarships through your college or from businesses outside your institution.

Many students also benefit from taking out private student loans. Once you have figured out how much money a college or university can offer you, you can take out private student loans from a bank, credit card company, or other source to help you pay for your schooling and cost of living.

Student Loan Process: When, How, Where

Student loans have started to become the backbone of the modern education system. Now that college has become more expensive, it’s difficult for students without substantial parental support (or large college savings accounts) to afford an education without drawing on student loans. Federal student loan programs operate with broad rules and regulations, which can make the student loan process difficult. These programs don’t always fit every student, which leaves people searching for other options.

Here’s a look into the world of student loans to familiarize student’s with the student loan process.

Student Loan Process Basics

There are two types of student loans: federal and private. Federal student loans are administered by the government. They can have more forgiving student loans interest terms and they usually don’t require a credit check. So, with federal loans, your credit history shouldn’t matter as much. This makes it easier to get federal student loans without needing a cosigner.

Private student loans are managed by private lenders such as banks, credit unions, or institutions and require you to pay back your loan. Private student loans can be more versatile than federal student loans, depending on your situation. They require a credit check, which can work to your advantage if you have a strong credit score.

When Should I Apply For Student Loans?

In order to apply for federal student loans, you must fill out your FAFSA during a specific time. The federal deadline for completing your FAFSA usually comes very late in the school year. For example, the deadline for the 2021-2022 school year is 11:59 pm on June 30, 2022. However, the federal deadline shouldn’t be your only focus.

Schools have FAFSA deadlines as well, varying from campus to campus.  Make a note to contact your school’s financial aid office if you’re unsure when you need to have your FAFSA completed. However, as a general rule, you should plan on applying for federal student loans before the beginning of the semester.

Can You Apply for a Student Loan During the Year?

Yes, you can apply for a student loan during the year. Additionally, if you have filled out your FAFSA before the deadline, you can apply for federal student loans at any point during the school year. If the deadline for completing your FAFSA has passed, and you still need student loans, federal loans may no longer be an option for you. Fortunately, you can generally take out private student loans at any point in time. Private lenders are not restricted by the FASFA deadline or semester dates, so you can apply as you need.

How Much Can You Get in Student Loans?

Even if you’ve filled out your FAFSA on time, you may still be unable to get federal student loans if you have reached your federal student loan limit. Student loan limits represent a maximum amount that a student can receive in subsidized and unsubsidized loans, both per semester and over the course of a lifetime.

If you are receiving financial support from your family, then your student loan limits are:

• $5,500 per year for a first-year undergraduate
• $6,500 per year for a second-year undergraduate
• $7,500 per year for third-year and beyond undergraduate
• $31,000 in total

If you are not receiving financial support from your family, then your student loan limits are:

• $9,500 per year for a first-year undergraduate
• $10,500 per year for a second-year undergraduate
• $12,500 per year for third-year and beyond undergraduate
• $20,500 per year for graduate or professional students
• $57,500 in total for undergraduate students
• $138,500 for graduate or professional student (includes loans received during undergraduate career)

If you’ve reached your student loan limit for the semester and you need to get more student loans, then you will be unable to take out any more federal loans, no matter how great your need is.

What to Do When You Reach Your Student Loan Limits

Private student loans generally do not have the limits indicated above, and you may be able to apply for a loan from a private lender.

If a lender is concerned about your ability to pay off the student loans that you’re applying for, see if you can find someone to co-sign. Some lenders allow co-signers to be released on private student loans after a certain period of time and upon certain requirements being met.

How to Get Student Loans Mid Semester

As long as you have not surpassed your borrowing limit (either for the semester or your maximum student loan limit) and you have completed your FAFSA on time, you can take out federal student loans mid-semester. However, if your FAFSA was not completed by the deadline or you’ve reached your student loan limit, then you can still apply for private student loans during the year.

In general, private student loans are a good option if you need more flexibility when you apply for student loans. Private lenders are indifferent when it comes to federal deadlines and limitations, making it easier to apply for them mid-semester. Make your dreams attainable, apply now for a private student loan.

The answer to the question “Can I take out more student loans during the semester?” is a resounding yes. You can take out as much money as you need, but you do have to be careful about how much of your aid package is coming from federal loans. The Department of Education does not allow students to borrow more than they are eligible for in federally-funded grants and scholarships.

If you find yourself running out of money at any point during the semester, it’s worth it to talk with someone in your university’s financial aid office. They will be able to help you determine what options are available and explain how much money you should be borrowing each semester.