This page does not determine official eligibility and is not legal, tax, financial, or official program advice. Verify current rules with Federal Student Aid, your servicer, or another qualified source before acting.
Quick Answer
Federal borrowing limits change sharply on July 1, 2026. ED's May 6, 2026 fact sheet says the Working Families Tax Cuts Act eliminates the Grad PLUS program and sets new federal loan limits for graduate students, professional students, and Parent PLUS borrowers. Undergraduate loan limits remain unchanged. New annual limits are $20,500 for graduate students, $50,000 for professional students, and $20,000 per dependent student for Parent PLUS borrowers. Aggregate limits are $100,000 for graduate students, $200,000 for professional students, and $65,000 per dependent student for Parent PLUS.
What Borrowers Should Know
The federal student loan system is about to change for graduate students, professional students, and parents.
On May 6, 2026, the Department of Education released a fact sheet explaining new loan limits scheduled to take effect July 1, 2026. ED says the Working Families Tax Cuts Act eliminates the Grad PLUS program and introduces new caps on graduate-level federal student borrowing. Undergraduate student loan limits are not changed by these rules.
For graduate students who are not classified as professional students, the new annual Direct Unsubsidized Loan limit is $20,500. The new aggregate limit is $100,000. For professional students, the new annual limit is $50,000, and the aggregate limit is $200,000. ED also describes a $257,500 aggregate lifetime limit for borrowers who receive loans made on or after July 1, 2026, with exceptions.
Parent PLUS is changing too. Beginning July 1, 2026, parents may borrow up to $20,000 per year per qualifying dependent student, with an aggregate limit of $65,000 per dependent student. That is a major shift from the prior structure, under which Parent PLUS borrowing could generally reach the cost of attendance minus other aid.
There is an interim exception for some current students. ED says borrowers enrolled in a graduate program before July 1, 2026, who already received a loan for that program may continue under prior terms until they graduate, subject to conditions. Borrowers who cease enrollment or withdraw may lose that exception.
Families should ask colleges direct questions before committing to a program for 2026-27. What is the total cost of attendance after July 1? How much federal borrowing is available under the new rules? Is the student classified as graduate or professional? What happens if the program takes longer than expected? Are institutional grants, assistantships, payment plans, or employer partnerships available?
Parents should be especially cautious about replacing capped Parent PLUS borrowing with private loans without understanding the tradeoffs. Private loans may require credit underwriting, may not offer the same federal repayment options, and may not include federal discharge protections.
Action Checklist
- Log in to StudentAid.gov and confirm loan type, servicer, balance, payment status, and current plan.
- Save screenshots or PDFs before submitting any repayment, consolidation, forgiveness, or complaint form.
- Ask your servicer for written confirmation when the answer affects payment amount, eligibility, or deadlines.
- Recheck official sources on the day you act, especially when rules, dates, or application access may have changed.
What This Guide Covers
- What changes on July 1, 2026
- New annual and aggregate limits
- The interim exception for current students
- How Parent PLUS borrowing changes
- Questions families should ask colleges