Federal Student Loan Rules Updated with New Borrowing Limits

The U.S. Department of Education has introduced new federal student loan rules, effective July 1, 2026. Key changes include a $257,500 lifetime borrowing cap for students, reduced annual limits for part-time students, and new restrictions on Parent PLUS loans, setting annual and aggregate caps. These regulations will significantly affect families applying for financial aid, potentially altering access to higher education funding.