What We Know As of January 2026
The new limits apply to enrollment periods beginning on or after July 1, 2026, for all students and borrowers.
Undergraduate Students
Annual and aggregate loan limits will not change for undergraduate students. The aggregate limit for dependent undergraduate students is $31,000, and for independent undergraduate students, $57,500.
Graduate Students
Graduate students can borrow up to $20,500 in unsubsidized loan funds annually, with an aggregate borrowing limit of $100,000, excluding undergraduate loan borrowing. Existing borrowers can access unsubsidized loans under current limits until they complete their current degree, or for three additional years, whichever is shorter.
The lifetime loan borrowing limit at all loan levels will be $257,500, regardless of any amounts repaid, forgiven, canceled, or otherwise discharged. This amount excludes PLUS Loans.
Parent PLUS Loan Borrowers
Parent PLUS Loan borrowers may borrow up to $20,000 annually, with an aggregate borrowing limit of $65,000 per dependent student, regardless of any amounts repaid, forgiven, canceled, or otherwise discharged.
The Graduate PLUS loan program will be eliminated effective July 1, 2026; on that date, new loans will no longer be available to new borrowers.
Some continuing eligibility will be available to existing Graduate PLUS borrowers as they complete their current degree. Current indications are that a student who borrows any Direct Loan or Graduate PLUS before July 1, 2026, will remain eligible to borrow a Graduate PLUS loan for a 3-year window or until program completion, so long as that student remains in the same program at the same school for which they borrowed the pre-July 1, 2026 loan.
Beginning July 1, 2026, Parent PLUS Loan borrowers may borrow up to $20,000 annually, with an aggregate borrowing limit of $65,000 per dependent student, regardless of any amounts repaid, forgiven, canceled, or otherwise discharged.
If a Parent PLUS Loan borrower needs more than the annual borrowing limit or reaches the aggregate limit before the student graduates, there are additional funding options, including external scholarships, an interest-free payment plan, and private loans.
Current Parent PLUS Loan Borrowers
New federal borrowing limits cap the Parent PLUS Loan at $20,000 per year and $65,000 in total, but the law allows a time-limited exception to those limits for currently enrolled students.
For Parent PLUS Loan borrowers not to 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 during scheduled 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 new 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.
What Happens When Students No Longer Qualify For the Limited Exception?
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.
New Parent PLUS Loan Borrowers
Importance of Planning Accordingly
The new aggregate limit of $65,000 means that borrowing the annual maximum for a four-year undergraduate program will cause parents to reach the aggregate limit before the student completes their degree, leaving them without further access to the Parent PLUS Loan.
Planning Annual PLUS Borrowing To Ensure Continued Access
On the Parent PLUS Loan application, parents should select the maximum amount option only if they intend to borrow the full $20,000 for the year. To ensure adequate Parent PLUS Loan eligibility throughout the student’s undergraduate program, parents should request a lower amount on the application. For example, request $16,250 in total (aggregate) eligibility per year, split equally over a four-year program.
Tips for Borrowing
We strongly recommend that students add their parent(s) as to their TouchNet account. Authorized Users can view , the , anticipated aid, and anticipated refunds.
For information on tuition and fees, billing, and payment options, please visit the following:
The bill includes a provision to prorate the annual loan limits based on enrollment.
For undergraduates, full-time enrollment is 12 or more credit hours; for graduate students, it is 9 or more credit hours. Department definitions may vary.
Based on the proposed changes, students enrolled below the full-time enrollment thresholds, including part-time graduate students (e.g., those enrolled less than full-time), would be eligible for only a portion of the annual loan limit.
We are awaiting clarification from ED on how this will apply to both graduate and undergraduate students.
There are no changes to PSLF provisions for direct loan borrowers, although new eligibility limitations have been proposed separately from the OBBB through other regulatory action.
Parent PLUS Loans and Public Service Loan Forgiveness (PSLF)
The new tiered standard repayment plan is not a qualifying repayment plan for PSLF. As a result, borrowing a new Parent PLUS Loan on or after July 1, 2026, prevents borrowers from receiving PSLF, even if they have already made qualifying payments, because all Parent PLUS loans must be repaid under the new tiered standard repayment plan.
Parents planning to borrow a Parent PLUS Loan on or after July 1, 2026, but who want to preserve their eligibility for PSLF, may want to carefully consider other ways to help finance their dependent student’s education.
Direct Loan Borrowers
The bill eliminates the current Income-Driven Repayment (IDR) plans (IBR, ICR, PAYE, and SAVE) and replaces them with a new Repayment Assistance Program (RAP).
Borrowers with no new loans made on or after July 1, 2026, remain eligible to enroll in the current Standard, Graduated, Extended, ICR, PAYE, and IBR repayment plans. Borrowers may opt in to the new RAP or the new tiered standard plans once those plans are available.
Current borrowers enrolled in ICR, PAYE, or SAVE plans must transition to a new repayment plan by July 1, 2028. If no selection is made by that date, they will be moved into RAP. Borrowers may switch between, enter, or remain on existing IDR plans until July 1, 2028. Only Income-Based Repayment (IBR) will remain among the current IDR plans.
Borrowers with new loans disbursed on or after July 1, 2026, will have only two repayment options: the Standard 10-25 fixed repayment plan (Tiered Standard) or the Repayment Assistance Program (RAP). All loans must be repaid under the same repayment plan.
As of July 1, 2028, the SAVE, ICR, and PAYE plans will be eliminated. More information on updates to repayment plans will be forthcoming.
Parent PLUS Loan Borrowers
Any federal Parent PLUS Loans borrowed 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.
For Parent PLUS Loans taken out on or after July 1, 2026, the only repayment plan available will be a new tiered standard repayment plan. The tiered standard repayment plan offers a fixed monthly payment over 10 to 25 years, based on the outstanding balance of the loan(s).
The new rule also applies to parent borrowers with existing Parent PLUS Loans who take out a new loan on or after July 1, 2026, because the law requires that all Parent PLUS Loans be repaid under the same repayment plan. Parents who currently have Parent PLUS loans in repayment and who borrow a Parent PLUS loan on or after July 1, 2026, will have all their Parent PLUS loans moved to the tiered standard repayment plan, which may change their monthly payments.
Current Parent PLUS Loan borrowers may repay their loans under the following repayment plans until their loans are fully repaid, provided they do not borrow new Parent PLUS Loans on or after July 1, 2026:
- 10-year standard repayment plan
- Extended repayment plan
- Graduated repayment plan
Parent PLUS Loan borrowers who consolidated their Parent PLUS Loans into a Direct Consolidation Loan before July 1, 2026, may repay their loans under the income-contingent repayment (ICR) plan through June 30, 2028. At that point, the ICR plan will sunset, and Parent PLUS Loan borrowers repaying under ICR will be moved to the income-based repayment (IBR) plan.
Parents who want access to an income-driven repayment plan and/or loan forgiveness for their Parent PLUS Loans must:
- Have consolidated their Parent PLUS Loans into a Direct Consolidation Loan and enrolled in the income-contingent repayment (ICR) plan prior to July 1, 2026, AND
- Not have borrowed a new Parent PLUS Loan on or after July 1, 2026.