Federal student loan changes include $20,000 annual and $65,000 lifetime caps for Parent PLUS loans starting July 1.
The most sweeping federal student loan overhaul in decades begins July 1, introducing new borrowing limits and repayment options. Parent PLUS loans will be capped at $20,000 annually and $65,000 in total for new borrowers, unless exceptions apply for students enrolled before June 30, 2026.
Existing borrowers may need to consolidate loans or select new repayment plans to avoid involuntary placement in plans misaligned with their budgets. New borrowers will face only two repayment options, while Parent PLUS borrowers will be limited to a tiered standard repayment plan with fixed payments over 10 to 25 years.
Exceptions allow uncapped loans for three academic years if conditions are met, according to financial aid administrators. Current Parent PLUS loans remain under existing plans unless new loans are taken after July 1.