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Current Parent PLUS Loan Borrowers

Beginning July 1, 2026, changes to the law affect how much parents can borrow from the Parent PLUS Loan program for their children’s college education and the available repayment options for those loans. There are no changes to how much undergraduate students can borrow.

Exceptions for Continuing Borrowers

New federal borrowing limits cap the Parent PLUS Loan at $20,000 per year and $65,000 in total, but the law allows for a time-limited exception to new loan limits for currently enrolled students:

In order for Parent PLUS Loan borrowers to not be subject to the new loan limits:

• The student must remain continuously enrolled in the same program of study at the same institution as they were enrolled as of June 30, 2026, AND
• Either
• The parent borrower must have had a Parent PLUS Loan disbursed for that same program before July 1, 2026, OR
• The student must have had a Direct Loan (subsidized or unsubsidized) disbursed for that same program before July 1, 2026.
• If the above requirements are met, the new Parent PLUS Loan limits do not apply while the student is completing their program, for up to 3 years, provided the student remains continuously enrolled (i.e., does not withdraw or otherwise cease enrollment outside of schedule breaks or non-required terms, such as summer).

Parents of current students who do not currently meet these criteria can still qualify for this limited exception to the loan limits if:

• The parent borrows a Parent PLUS Loan prior to July 1, 2026, OR
• The student borrows a Direct Loan (subsidized or unsubsidized) prior to July 1, 2026.

After three academic years, or earlier if the student withdraws or otherwise ceases enrollment from their current school or completes their program of study, Parent PLUS Loan borrowers become subject to the new $20,000 annual and $65,000 aggregate loan limits.

Repayment Plan Changes

For Parent PLUS Loans taken out on or after July 1, 2026 (including federal consolidation loans that include Parent PLUS Loans) can only be repaid under a single new, fixed repayment plan. This applies to parent borrowers with existing Parent PLUS Loans as well if they borrow a new loan on or after July 1, 2026.

More Information for Current Parents is available here from NASFAA:

New Parent PLUS Loan Borrowers

Borrowing Limits

There are new loan limits for the Parent PLUS Loan program. Parents are limited to borrowing $20,000 per dependent student, per academic year (annual limit) and $65,000 per dependent student, in total (aggregate limit). This amount is specifically per dependent student and not per parent--a student can only receive up to $20,000 in Parent PLUS Loans annually. 

Repayment Plan Changes

For Parent PLUS Loans taken out on or after July 1, 2026 (including federal consolidation loans that include Parent PLUS Loans) can only be repaid under a single new, fixed repayment plan. This applies to parent borrowers with existing Parent PLUS Loans as well if they borrow a new loan on or after July 1, 2026.

More Information for New Parents is available here from NASFAA:

Changes for Health Professions Students

What’s Changing

Starting July 1, 2026, the Graduate PLUS loan program will be eliminated unless students qualify for a limited exception.

There are also new Direct Unsubsidized Loan annual and total (aggregate) limits, based on whether students are considered graduate or professional students, and a new lifetime borrowing limit. Some health professions students will see higher annual and aggregate Direct Unsubsidized Loan eligibility, while others will qualify for lower amounts.

More information for Health Professions Students is available here through NASFAA:

Changes for Professional Students

What’s Changing

Starting July 1, 2026, the Graduate PLUS loan program will be eliminated unless students qualify for a limited exception.

The new annual Direct Unsubsidized Loan limit is $50,000. The new aggregate limit is $200,000 for a professional degree program, and a new lifetime federal loan limit of $257,500 for all Federal Direct student loans (excluding Graduate or Parent PLUS Loans) borrowed for all levels of study.

Students who qualify for the limited exception will also be exempt from the new Direct Unsubsidized annual, aggregate, and lifetime limits.

Limited Exception

Students may qualify for the limited exception for a maximum of three years, if:

• They remain continuously enrolled in the same program of study at the same institution as they were enrolled as of June 30, 2026, AND
• They had a Direct Loan disbursed (Direct Unsubsidized or Graduate PLUS) for that same program before July 1, 2026.

The limited exception also maintains the current annual limit of $20,500 for Direct Unsubsidized Loans, and is not subject to the new annual limit.

New Rules for Less Than Full-Time Enrollment

If students enroll part-time in 2026-27 or future years, their federal Direct Unsubsidized and/or Graduate PLUS Loans (if they qualify to borrow under the limited exception describe above) must be prorated in accordance with changes to the law.

Students thinking of enrolling part-time or dropping a class should talk to the financial aid office first to understand the implications.

Repayment Plan Changes

Students who borrow a new federal Direct Loan on or after July 1, 2026 will be eligible for limited repayment plan options. This applies to borrowers with existing loans in repayment if they borrow a new loan on or after July 1, 2026.

More Information for Professional Students can be found here from NASFAA: