New Federal Student Loan Limits Take Effect, Impacting Parent PLUS and Grad PLUS Programs

Significant changes to federal student loan programs, including new caps on Parent PLUS loans ($20,000 annually, $65,000 total per student for new borrowers) and the elimination of Grad PLUS loans for new borrowers, are now in effect as of July 1, 2026. These changes, verified against Department of Education guidance on October 31, 2026, also introduce a new lifetime cap of $257,500 on federal student loans (excluding Parent PLUS).