Federal Student Loan System to Undergo Significant Changes in 2026

Major federal student aid reforms, effective July 1, 2026, will introduce new borrowing caps for Parent PLUS and graduate students, eliminate Graduate PLUS loans for new borrowers, and reduce repayment options to two plans: a revised standard plan and a new Repayment Assistance Plan. These changes, part of the "Working Families Tax Cuts Act," will significantly alter the landscape for future student loan borrowers and repayment strategies.