Paying for college often involves a mix of scholarships, grants, savings, and loans. For many families, federal student and parent loans play a major role in that plan.
Beginning July 1, 2026, federal borrowing rules are changing in ways that may affect how much some families can borrow. If you rely on loans to help cover educational costs, now is a good time to understand what is changing and start talking with your parents or supporters about your long-term plan.
Your Federal Student Loan Amount Can Change From Year to Year
Many students assume their federal student loan offer will stay the same throughout college. In reality, your eligibility will change each year based on your academic progress and enrollment.
Your federal student loan amount may be impacted by:
- Your year in school: Loan limits increase as you complete more credits.
- Your enrollment level: Enrolling less than full-time will reduce your eligibility.
- Your remaining time in your program: Students nearing graduation may receive reduced loan amounts for their final term.
- Other financial aid received: Your total aid cannot exceed your cost of attendance.
Understanding how these factors affect your eligibility can help you better anticipate future borrowing needs.
Parent PLUS Loans Will Have New Borrowing Limits
Parent PLUS Loans are federal loans parents can use to help cover a dependent student’s educational costs. Beginning July 1, 2026, many Parent PLUS borrowers will be subject to new federal borrowing caps:
| Limit | Amount |
|---|---|
| Annual Limit | $20,000 per dependent student |
| Aggregate Limit | $65,000 per dependent student |
Previously, eligible parents could often borrow up to the student’s full cost of attendance minus other financial aid.
Some Families May Qualify for a Temporary Exception
Current Parent PLUS borrowers may continue under the previous borrowing rules for the same student if either of the following occurred before July 1, 2026:
- A parent previously borrowed a Parent PLUS Loan for that student.
- The student previously borrowed a federal Direct Subsidized or Unsubsidized Loan.
This exception applies only to that same student.
If your family has another dependent student who first borrows after July 1, 2026, the new Parent PLUS limits will apply to that student.
Talk With Your Family Now
These changes may affect how your family plans to pay for future semesters.
We encourage students to start the conversation now with their parents or supporters about:
- How much your family plans to borrow each year
- Whether Parent PLUS limits may affect your funding strategy
- How enrollment decisions could impact borrowing eligibility
- Whether additional financing options may be needed
Private Loans May Help Fill Funding Gaps
If federal loans and other financial aid do not fully cover your educational costs, some students choose to explore private loans.
Private loans differ from federal loans in several important ways:
- Approval is typically based on credit history
- A co-signer may be required
- Interest rates and repayment terms vary by lender
- Borrower protections may differ from federal loan programs
Because private loans are credit-based, building and maintaining healthy credit may improve borrowing options and help borrowers qualify for better terms. We provide a preferred lender list to help students compare private loan options. You are not required to use lenders on this list and may choose any lender that meets your needs.
Have Questions?
Borrowing for college is a long-term financial decision. Understanding your options now can help you avoid surprises later. If you have questions about how these changes may affect your aid eligibility, contact the Office of Student Financial Aid.