New Federal Student Loan Caps Take Effect for 2026-2027

New federal student loan limits, enacted by the 'One Big Beautiful Bill Act' in July 2025, are now active for the 2026-2027 academic year. Graduate students face a $20,500 annual cap or $100,000 per degree, while undergraduate limits remain unchanged. Parent PLUS Loans are capped at $20,000 annually and $65,000 per degree. Borrowers under the Federal Direct Loan Program before July 1, 2026, may access expiring limits for up to three more years.