If you’ve already received a financial aid package and it doesn’t cover your full cost of attendance, you have several options for borrowing more. The path depends on whether you’ve maxed out your federal loan limits, what year you’re in, and whether you’re an undergraduate or graduate student. Start by confirming exactly where you stand with federal loans before turning to other sources, since federal loans almost always offer better terms than private alternatives.
Check Your Remaining Federal Loan Eligibility
Federal Direct Loans have annual and aggregate (lifetime) caps that vary based on your year in school, whether you’re classified as a dependent or independent student, and your enrollment status. Many students don’t realize they haven’t actually hit their limit. Your annual cap increases as you progress from freshman to sophomore to junior year, so the amount you were offered last year may be lower than what you can borrow this year.
If your parents applied for a Direct PLUS Loan and were denied due to adverse credit history, you may qualify for additional unsubsidized loan funds beyond the standard dependent student limits. This is a commonly overlooked route that can free up thousands of dollars in extra federal borrowing without requiring you to take on a private loan.
To see exactly how much you’ve borrowed and how much room remains under your aggregate limit, log in to your account at StudentAid.gov. Your loan servicer dashboard shows your total federal loan balance broken down by loan type. Compare that number against your aggregate cap to see whether you have room to borrow more in future years.
File a Financial Aid Appeal
If your family’s financial situation has changed since you filed the FAFSA, your school’s financial aid office has the authority to adjust your aid package. This process is called “professional judgment,” and it allows an aid administrator to modify the data elements on your FAFSA that determine your Student Aid Index (the number used to calculate your need). A lower index can qualify you for more grants, subsidized loans, or institutional aid.
Circumstances that commonly justify an appeal include job loss or reduced income, divorce or separation, unusually high medical expenses, death of a parent or spouse, or loss of untaxed income like child support. You’ll need documentation: termination letters, pay stubs showing reduced hours, medical bills, divorce decrees, or similar paperwork that proves the change.
Contact your financial aid office directly and ask about their special circumstances or professional judgment process. Each school handles appeals differently, and there’s no universal form. Be specific about what changed, provide clear documentation, and submit everything as early as possible. The federal government does not override a school’s professional judgment decision, so the financial aid office has final say.
Apply for a Direct PLUS Loan
PLUS Loans are federal loans designed to cover costs that other financial aid doesn’t reach. Parents of dependent undergraduates can borrow through the Parent PLUS Loan, and graduate or professional students can borrow through the Grad PLUS Loan. Unlike standard Direct Loans, PLUS Loans let you borrow up to the full cost of attendance minus any other financial aid received, so there’s no fixed dollar cap.
Applying requires a completed FAFSA and a credit check. The credit standard is different from private lending: the government checks for “adverse credit history,” which includes things like current delinquencies of 90 or more days, bankruptcy discharge, foreclosure, or wage garnishment within a set lookback period. It’s not a credit score threshold. If the credit check reveals adverse history, the borrower can still qualify by obtaining an endorser (similar to a cosigner) or by documenting extenuating circumstances to the Department of Education.
Most schools require you to start the PLUS application online at StudentAid.gov, though some have their own process. Check with your financial aid office first. One important change on the horizon: beginning July 1, 2026, graduate and professional students who are enrolling in a new program, a new school, or taking out a Direct Loan for the first time for their current program will no longer be eligible for Grad PLUS Loans. If you’re a graduate student planning future borrowing, this timeline matters.
Consider Private Student Loans
Private loans from banks, credit unions, and online lenders can fill the gap when federal options are exhausted. Unlike federal loans, private loans are credit-based, and their interest rates, repayment terms, and borrower protections vary widely from lender to lender. Treat these as a last resort after you’ve used all available federal aid, because private loans typically lack income-driven repayment plans, forgiveness programs, and the flexible deferment options that federal loans offer.
Most private lenders look for a credit score in the mid-600s or higher, along with a minimum income that can be as low as $24,000 at some lenders. They also calculate your debt-to-income ratio to assess how much of your monthly income already goes toward existing debt. Because most students don’t have an established credit history or steady income, many lenders require a cosigner. Your cosigner’s credit profile often matters more than yours in determining approval and interest rate. Keep in mind that a cosigner takes on full legal responsibility: if you default, both your credit and your cosigner’s credit take the hit.
When shopping for private loans, compare the annual percentage rate (the total yearly cost of borrowing, including fees), whether the rate is fixed or variable, the repayment term length, and whether the lender offers cosigner release after a period of on-time payments. Some lenders let you release your cosigner after 24 to 48 consecutive payments, which can be a meaningful factor if a family member is helping you qualify.
Reduce the Gap Before Borrowing More
Before taking on additional debt, it’s worth checking whether you can shrink the amount you need. Ask your school about institutional scholarships, departmental grants, or tuition payment plans that break your balance into monthly installments without interest. Search for outside scholarships through professional associations, community foundations, and employer tuition assistance programs. Even a few hundred dollars in scholarships reduces what you need to borrow, and unlike loans, that money never needs to be repaid.
If you’re an undergraduate, look into work-study or part-time campus employment. If you’re a graduate student, assistantship positions often include tuition waivers or stipends that directly offset your cost of attendance. These won’t always close the full gap, but combining multiple smaller funding sources can significantly reduce the loan amount you carry after graduation.