Federal Legislation

New Borrowing Limits (Effective July 1, 2026)

• Undergraduate annual borrowing limits: Unchanged.
• Parent PLUS Loan program limits (per dependent student): $20,000 annually; $65,000 lifetime limit
  • Current borrowers (before 7/1/2026) can still borrow up to the Cost of Attendance, and will remain subject to current aggregate limits until they graduate or for three (3) additional academic years, whichever is earlier.
• Graduate students: $20,500 annually; $100,000 lifetime limit
• Grad PLUS program: Eliminated;
  • Current borrowers (before 7/1/2026) can still borrow up to the Cost of Attendance, and will remain subject to current annual and aggregate limits until they graduate or for three (3) additional academic years, whichever is earlier.
• Professional students (law. medicine, and others - TBD): $50,000 annually; $200,000 lifetime limit
• Loan limits for part-time students are reduced for an academic year if the student is enrolled in a program of study on less than a full-time basis during that academic year. This reduction in the annual loan limit will be made in direct proportion to the degree to which the student is not enrolled full-time, rounded to the nearest percentage point.
• Lifetime borrowing limit for all students: $257,500

Repayment Changes (Effective July 1, 2026)

All existing plans will be discontinued for borrowers with new loans. Instead, two new plans will be introduced:

1. Standard Repayment Plan: Payment periods range from 10 to 25 years, depending on the original loan balance
2. Repayment Assistance Plan (RAP): Payments are set at 1% to 10% of income, with the remaining balance forgiven after 30 years. Parent PLUS loans are not eligible for the RAP.

Options for Current Borrowers

Current borrowers with loans made prior to July 1, 2026, can remain on most existing repayment plans so long as they do not borrow additional loans on or after July 1, 2026. If current borrowers borrow additional loans on or after July 1, 2026, all their loans (prior to July 1, 2026, and new loans on or after July 1, 2026) will have the two new repayment options.

Current borrowers on the ICR, PAYE, or SAVE plans, will need to switch to the Income-Based Repayment plan or another existing repayment plan by July 1, 2028; if they do not do so, they will be transitioned to RAP.

Support from Student Financial Services (SFS)

SFS recognizes the stressful, disruptive impact these changes may have on your educational plans, and we will continue to monitor the situation closely, including staying up to date on resources available to students and exploring options with you for bridging the funding gap left by the elimination of Grad PLUS and reduction of Parent PLUS loans, such as Private Educational Loans. We encourage you to bookmark studentaid.gov for updates on these changes to federal financial aid.

SFS remains committed to helping guide you through the financial aid process and ensuring that you understand eligibility requirements and available options. We're here for you. Read this article for more information.