On July 4, 2025, President Donald Trump signed the H.R.1 bill (One Big Beautiful Bill Act) into law. Significant provisions in the bill that impact parent borrowers of federal loans took effect on July 1, 2026. Please visit our Federal Updates page for additional information.
On this page:
New limits for Parent PLUS Loans
What are the new loan limits for the Parent PLUS Loans program?
Under the new federal law, new Parent PLUS borrowers are subject to firm loan limits. These annual and aggregate caps on Parent PLUS Loans will limit the amount of federal loans that qualifying parents can take out to help pay for their child’s education.
- Annual limit: $20,000 per dependent student, per year.
- Aggregate limit: $65,000 per dependent student, in total.*
The new aggregate limit of $65,000 means that parents will not be able to borrow the full annual amount each year for all four years of a four-year undergraduate program. By the fourth year, parents who borrowed the full amount each previous year will only have $5,000 of the aggregate limit still available to borrow.
*Aggregate limit is without regard to amounts forgiven, repaid, canceled, or discharged.
How much should parents borrow if they want the same loan amount for four years?
On the Parent PLUS Loan application, you have the option to request a reduced loan for the year in order to split the total aggregate loan equally for a four-year program. Note: On the application, only select the “maximum amount” option if you wish to borrow the full $20,000 for the year.
If you borrow equally across four years (for one dependent student):
- Year 1: Borrow $16,250
- Year 2: Borrow $16,250
- Year 3: Borrow $16,250
- Year 4: Borrow $16,250
If you borrow the annual maximum amount (for one dependent student):
- Year 1: Borrow $20,000
- Year 2: Borrow $20,000
- Year 3: Borrow $20,000
- Year 4: Can only borrow $5,000 for the year
For information about how to borrow a Federal Direct Parent PLUS Loan, visit PLUS Loan Application.
Are there any exceptions to the new Parent PLUS Loan limits?
There is a limited exception for borrowers who already had a loan disbursed before July 1, 2026. Parents are not subject to the new PLUS loan limits (for up to three academic years or the remainder of the student’s expected time to credential,* whichever is less) if:
- The student remains 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 had a Parent PLUS Loan disbursed for that same program before July 1, 2026, or the student had a Direct Loan (subsidized or unsubsidized) disbursed for that same program before July 1, 2026.
*The expected time to credential is based on the school’s official published program length for full-time study, rather than an individual student’s expected completion date.
Parent PLUS Loan repayment plans
What are the new repayment options for borrowers of Parent PLUS Loans?
Any federal Parent PLUS Loans borrowed on or after July 1, 2026 can only be repaid under a single new, tiered fixed repayment plan: a fixed monthly payment over 10 to 25 years, based on the outstanding balance of the loan(s). Repayment plan changes apply to all parent borrowers and to federal consolidation loans that include Parent PLUS Loans.
Repayment for current borrowers who borrow a new Parent PLUS Loan on or after July 1, 2026: All Parent PLUS Loans must be repaid under the same repayment plan, so taking out a new loan after June 30, 2026 will move any and all existing Parent PLUS Loans to the new repayment plan.
Repayment for current borrowers who do NOT borrow a new loan on or after July 1, 2026: Current parent borrowers who do not borrow new Parent PLUS Loans after the cutoff date may repay their loans under an approved list of legacy repayment plans until their loans are fully repaid.