Changes for New Borrowers

Graduate PLUS Loans

The OBBBA eliminates Direct PLUS Loan program for graduate and professional students for any new period of instruction beginning on or after July 1, 2026.

Parent PLUS Loans

Beginning on July 1, 2026, the total amount of all Direct PLUS Loans that one or more parents may borrow on behalf of each dependent student for any academic year of study may not exceed $20,000. This limit is per student per year; parents may borrow on behalf of more than one dependent student. The total amount of Direct PLUS Loans that all parents may borrow on behalf of each dependent student for enrollment in an eligible program of study may not exceed $65,000. Once this limit is reached, the parent can’t borrow more even if the previous loans are repaid, forgiven, canceled or discharged.

Graduate/ Professional Loan Limits

The OBBBA caps the annual loan limits at $20,500 for graduate students and $50,000 for professional students. The aggregate limit is capped at $100,000 for graduate students and $200,000 for professional students and does not include amounts borrowed as an undergraduate. Borrowers who are both graduate and professional students at some point in their educational careers may only borrow up to $200,000 in total for graduate and professional school.

Lifetime Loan Limits

OBBBA introduces a new $257,500 lifetime borrowing limit on all federal student loans, excluding borrowed Parent PLUS loan amounts (in the case of a dependent student who had Parent PLUS borrowed on their behalf for education expenses). This amount does not change with repayment, forgiveness, cancellation or the loan otherwise discharged.

Loan Proration

Beginning July 1, 2026, annual loan amounts will be adjusted based on the student’s percentage of full-time enrollment.

For example, at ESU, full-time undergraduate enrollment is 12 credits per semester. If a first‑time, dependent freshman takes 12 credits in the fall and 6 in the spring (18 of the standard 24 annual credits), their annual loan eligibility is prorated to 75% of the $5,500 limit, resulting in new annual limit of $4,125.