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1 correction found
The government's biggest student loan program is capped at $31,000
The $31,000 aggregate cap is not the general federal student-loan limit; it applies only to dependent undergraduates in Direct Subsidized/Unsubsidized Loans, while other borrowers can borrow much more.
Full reasoning
This statement overstates a narrow borrowing limit as if it were the overall cap for the main federal student-loan system.
According to Federal Student Aid, the aggregate limit of $31,000 applies to dependent undergraduate students in the Direct Subsidized/Unsubsidized Loan program. The same official guidance says independent undergraduates can borrow up to $57,500, and graduate or professional students can borrow up to $138,500 in Direct Unsubsidized Loans. In addition, federal Direct PLUS Loans can cover the remaining cost of attendance after other aid, rather than stopping at $31,000.
So the article's wording is incorrect as written: $31,000 is a specific cap for one borrower category, not a general cap for "the government's biggest student loan program" or federal student lending overall.
2 sources
- Federal Student Aid: Subsidized and Unsubsidized Loans
The maximum amount you can borrow each academic year depends on your grade level and dependency status... The aggregate loan limit for dependent undergraduate students is $31,000; for independent undergraduates $57,500; and for graduate or professional students $138,500.
- Federal Student Aid: Direct PLUS Loans for Parents
A parent can borrow up to the cost of attendance minus other financial assistance the student receives.