Credible takeaways
- Borrowing more money through student loans mid-semester is possible in some situations.
- You can't take out more federal loans if you have hit the borrowing limits.
- It may be easier to take out private student loans than federal student loans during the semester due to their flexibility and higher maximum loan amounts.
College is expensive, and costs are continuing to rise. A study by The Ohio State University found that almost 60% of students fear they might not have enough money to pay for college. If you find that you need to borrow more student loans during the semester, you do have options.
This guide will explain how to access more funding, and what your options are for doing so.
Can you take out more student loans during the semester?
In some cases, it's possible to take out more student loans once school is underway. However, it depends both on what type of loans you have, and whether you've hit your loan limits.
Federal student loans
There are annual and lifetime loan limits for federal Direct Subsidized and Unsubsidized Loans. Once you hit these limits, you're unable to take out any more of these loans. The limits vary by loan type, your year in school, your dependency status, and whether you're an undergraduate or graduate student. For example, first-year dependent undergraduates can borrow up to $5,500 per year, but only $3,500 can be in Direct Subsidized Loans. Graduate students can borrow $20,500 annually, in unsubsidized loans only. The aggregate loan limit is $31,000 for dependent undergraduate students, and $138,500 for graduate students.
If you submitted your Free Application for Federal Student Aid (FAFSA) by the deadline and didn't accept all the aid available, your school's financial aid office can help you borrow more mid-semester, up to the loan limits. If you weren't offered as much financial aid as you need, you can request an aid adjustment by contacting your school's financial aid office. You may need to provide documentation proving your financial circumstances.
Private student loans
Private student loans typically have much higher loan limits - many allow you to borrow up to the school-certified cost of attendance. You can also apply for private student loans at any time, so they offer more flexibility.
Unfortunately, private student loans don't have the borrower benefits that federal loans offer, including income-driven repayment plans and potential loan forgiveness. You should always exhaust federal student loans before turning to private loans, so check with your school's financial aid office about getting more federal funds before taking out private student loans.
Reasons for requesting more student loans mid-semester
Ideally, you'll get the student loans you need at the start of the school year and can budget accordingly so you don't run short on money.
Unfortunately, that's not always the case. There are many reasons why you might need to request more student loans in the middle of the semester, including:
- Changes in financial need: Your financial circumstances can change over the months you're in school. You or your parents might lose a job, for example, or you might experience an expensive medical emergency that leaves you with less money to pay for school.
- Unexpected educational or living expenses: Surprise expenses are a fact of life, even for students. Surprises like health issues, a landlord increasing rent, or textbooks that cost more than you expect could all lead to a need for more financial aid.
- Tuition increases or additional fees: If your school increases tuition or fees, you may need to borrow more money to cover these costs.
Federal vs. private student loans during the semester
Federal and private student loans have different application processes and different loan limits.
Federal student loans require you to complete the FAFSA. Information from it is then sent to your school, which puts together a financial aid package for you if you're accepted. This package may allow you to borrow up to the annual limit for Direct Subsidized and Unsubsidized Loans, depending on your financial need and other aid you're offered, such as scholarships and grants.
Your school likely has a FAFSA deadline and a deadline for accepting your financial aid package. However, there may be options available to access more aid later if you were approved for more funding than you initially accepted. Your school's financial aid office will help you determine how to receive those extra funds.
Private student loans, on the other hand, have online applications that you can complete anytime during the school year. Private loans also typically allow you to borrow up to the school-certified cost of attendance, so more money may be available to you if you need it.
Alternatives to taking out more loans mid-semester
Although you may be able to take out more loans during the semester, there are other options if you find yourself in need of some extra money. Here are a few potential alternatives:
- Emergency financial aid: Many colleges offer emergency financial support if you're struggling. However, you're often limited to borrowing a small amount, such as $1,000.
- Scholarships and grants: Scholarships and grants don't have to be repaid, making them an ideal option to pay for school. While some require you to have completed the FAFSA, many don't. You should be able to find and apply for scholarships online, but be sure you don't miss any deadlines set by the scholarship program.
- Work-study and part-time employment: You may be offered a federal work-study position as part of your overall financial aid package if you have financial need. This program offers students part-time jobs on and off campus to help fund their education. If you don't qualify for work-study, you can seek your own part-time employment to help pay for your degree.
FAQ
Can I increase my federal student loans mid-semester?
You may be able to increase federal student loans mid-semester if you haven't already hit your loan limits. Check with your school's financial aid office to find out about its process.
How do I apply for more private student loans during the semester?
You can apply for more private student loans at any time during the semester, as long as you are not borrowing more than the lender's maximum loan limit. You generally need sufficient proof of income and strong credit to qualify or will have to apply with a cosigner.
What are the risks of taking out more student loans mid-semester?
Borrowing more money means you'll have more to repay and your debt will be a bigger burden after graduation.
Can my financial aid be increased due to an emergency?
Some schools offer emergency student aid to students if they face financial hardship. In some cases, it may also be possible to increase your federal or private student loan amount, depending on the situation.
What should I do if I've reached my student loan limit?
There is a student loan limit for federal Direct Subsidized and Direct Unsubsidized Loans. Parents of undergrads, as well as grad students, are also eligible for Direct PLUS Loans, which can cover up to the school-certified cost of attendance. Additionally, borrowers have the option of taking out private student loans, or they can apply for scholarships and grants that don't require repayment.
