A federal law that took effect July 1, 2026 changed how much families can borrow for college. If you are starting school or grad school this year, here is what matters, in plain terms. Undergraduates are the least affected; graduate students and parents are the most.
New graduate and professional students can no longer take Grad PLUS loans. New federal borrowing is now capped at $20,500 per year and $100,000 total for most graduate programs, and $50,000 per year and $200,000 total for professional programs like medicine and law. Returning borrowers who received a federal loan before July 1, 2026 may keep Grad PLUS for up to three more years.
Parent PLUS is limited to $20,000 per student per year and $65,000 per student over a lifetime. If a parent or the student already borrowed federally before July 1, 2026, the older, higher limits keep applying to that same student.
There is now a $257,500 lifetime limit across all of a borrower's federal student loans, undergraduate and graduate combined. Parent PLUS loans are counted separately.
Your annual federal loan limits did not change. The main new thing to know is the lifetime cap above.
If these caps leave you short, do not jump to private loans. Work the free levers first: appeal your award if your situation changed, stack grants and scholarships, and ask about an interest-free payment plan. Our 2026 tuition gap calculator shows what you still owe and lays out the steps in order.
These figures come from the July 1, 2026 federal changes. Always confirm the current details at studentaid.gov, and read our fuller 2026 tuition gap guide.
If your situation changed, you can appeal. We draft it around your school's own policy.
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