Major Changes to Federal Student Loans Take Effect, Impacting Graduate and Parent PLUS Borrowers

The U.S. Department of Education has implemented significant changes to federal student loans, effective July 1, 2026. These changes include the discontinuation of Grad PLUS loans, new annual and lifetime borrowing limits for graduate and professional students ($20,500 per year/$100,000 lifetime for graduate programs, and $50,000 per year/$200,000 lifetime for professional programs), and new limits for Parent PLUS loans ($20,000 per year per dependent student, with a $65,000 aggregate limit). Borrowers taking out new loans after July 1, 2026, will also face a narrower selection of repayment options, primarily a revised standard plan and the new Repayment Assistance Plan (RAP).