Loan Limits
Loans are borrowed money you must PAY BACK to the federal government. Be smart, borrow what you can afford to repay. Failure to make payments and defaulting on your student loan can be the most damaging mark on your credit report, worse than bankruptcy.
- You cannot discharge a student loan in bankruptcy. You can file bankruptcy but not get rid of a student loan in bankruptcy court. You will be required to repay your student loan.
- Loans can build credit if you have no credit
- Loans can rebuild credit if you have bad credit by making your payments
- BUT loans can ruin your credit if you failed to make your payments
Students attending a 2-year community college may borrow up to "Second Year" annual loan limits.
Annual (single year) and Lifetime Aggregate (maximum overall for undergraduate) Loan Limits a student may borrow up to:
| Year | Dependent | Independent |
| First Year (0 to 29.9 units) |
$5,500 No more than $3,500 of this amount may be in subsidized loans. |
$9,500 No more than $3,500 of this amount may be in subsidized loans. |
| Second Year (30 or more units) |
$6,500 No more than $4,500 of this amount may be in subsidized loans. |
$10,500 No more than $4,500 of this amount may be in subsidized loans. |
| Lifetime Limits | $31,000 No more than $23,000 of this amount may be in subsidized loans. |
$57,500 No more than $23,000 of this amount may be in subsidized loans. |
The annual loan limit amounts are the maximum yearly amounts you can borrow in both subsidized and unsubsidized loans. You can have one ype or a combination of both. You cannot borrow more than your cost of attendance minus any other financial aid you have been awarded.