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The new loan limits apply to enrollment periods beginning on or after July 1, 2026, for all students and borrowers.

Direct Subsidized Loans and Direct Unsubsidized Loans have three different types of loan limits:

1. Annual Loan Limit
   1. The maximum loan amount a student can borrow each academic year
2. Aggregate Loan Limit
   1. The maximum amount of unpaid principal balance minus any capitalized interest that a borrower can have outstanding at any point in time on all of their subsidized and unsubsidized loans for undergraduate, graduate, or professional study
3. Lifetime Maximum Loan Limit
   1. The maximum amount a student can receive, regardless of any amount paid or discharged, in any combination of subsidized loans, unsubsidized loans, and Direct PLUS Loans for graduate or professional study

The annual and aggregate limits vary depending on a student’s program of study and, for undergraduate students, how far along they are in their program and whether they are a dependent or an independent student.

The lifetime loan borrowing limit at all loan levels will be $257,500, regardless of any amounts repaid, forgiven, canceled, or otherwise discharged. This amount excludes PLUS Loans.

Undergraduate Students

Annual and aggregate loan limits will not change for undergraduate students. The aggregate limit for dependent undergraduate students is $31,000, and for independent undergraduate students, $57,500.

Graduate Students

Graduate students can borrow up to $20,500 in unsubsidized loan funds annually, with an aggregate borrowing limit of $100,000 (for borrowers who are not and have never been professional students), excluding undergraduate loan borrowing.

Parent PLUS Loan Borrowers

Parent PLUS Loan borrowers may borrow up to $20,000 annually, with an aggregate borrowing limit of $65,000 per dependent student, regardless of any amounts repaid, forgiven, canceled, or otherwise discharged.

Loan Limit Exceptions

If borrowers meet certain requirements, they have a period of time after July 1, 2026, and before the  apply during which they might be eligible for a Direct Loan under the pre-OBBBA limits.

If a borrower qualifies for the exception, they’ll be exempt from certain loan limits and loan eligibility changes for the lesser of:

• three academic years or
• The difference between the published length of the program of study the student (or the student a parent borrows for) is enrolled in and the period of time the student (or your child) has completed in that program.

Graduate Students

Students qualify as an eligible graduate student under the limited exception only if they:

• were enrolled in a program of study at an institution as of June 30, 2026;
• received at least one Direct Loan for such program of study prior to July 1, 2026; and
• are currently enrolled at the same institution in the same program of study and have not ceased to be enrolled in the same program at the same institution at any point on or after July 1, 2026. An approved leave of absence is not considered to be a break in enrollment.

The Graduate PLUS loan program will be eliminated effective July 1, 2026; on that date, new loans will no longer be available to new borrowers.

Starting July 1, 2026, “expected time to credential” refers to how long it should take a student to complete their program. This amount of time is whichever is shorter:

• Three academic years, or
• The remaining length of their program is based on how long the program is and how much of it they’ve already completed.

A graduate student may be eligible to borrow a Direct PLUS Loan under the limited exception for their expected time to credential only if they:

• were enrolled in a program of study at a school as of June 30, 2026;
• borrowed a Direct Loan for that program of study prior to July 1, 2026;
• are currently enrolled at the same school in the same program of study; and
• haven’t had any break in their enrollment in the same program and the same school at any time as of July 1, 2026.
  • An approved leave of absence isn’t considered a break in your enrollment.

Graduate students who ��Dz�’t (or no longer) qualify for this limited exception are not eligible to borrow Direct PLUS Loans.

For each academic year beginning on or after July 1, 2026, the maximum amount of all Direct PLUS Loans that all parents may borrow on behalf of each dependent student may not exceed $20,000. The maximum amount a parent may borrow in Direct PLUS Loans for a dependent student over the course of their undergraduate studies is $65,000 per child, regardless of any amounts repaid, forgiven, or discharged.

Beginning July 1, 2026, undergraduate students enrolling in a new course of study and/or taking out a Direct Loan for the first time for a program in which they’re enrolled won’t be eligible for the limited exception. Parents of these students will be subject to the of $20,000 per student.

The OBBBA provides a limited exception for certain parent borrowers.

A parent borrower who qualifies for the limited exception and is subject to the prior Direct PLUS Loan limits if the dependent undergraduate student on whose behalf they are borrowing the Direct PLUS:

• was enrolled in a program of study at an institution as of June 30, 2026,
• borrowed a Direct Loan for such program of study prior to July 1, 2026, (or the parent borrowed a Direct PLUS Loan on behalf of the dependent student for such program of study),
• is currently enrolled at the same institution in the same program of study, and
• has not stopped their enrollment in the same program at the same institution at any point as of July 1, 2026. An approved leave of absence is not considered to be a break in enrollment.

Credential refers to the degree a student is seeking, for example, a bachelor’s or associate's degree. Students cannot change credential level and maintain eligibility for the exception, but they can change majors within their credential.

Parent borrowers who qualify for this limited exception may borrow up to—but not more than—the amount of their student’s estimated cost of attendance minus the amount of any other financial aid received for that academic year. The school determines the cost of attendance using federal guidelines.

Parent borrowers who do not qualify for the limited exception are subject to the new annual loan limit (the maximum amount that can be borrowed each academic year) and aggregate loan limit (the maximum loan amount that can be borrowed for each dependent student’s undergraduate study).

Tips for Borrowing

For new Parent PLUS Loan borrowers and those who are not eligible for the limited exception, it is important to plan accordingly.

The new aggregate limit of $65,000 means that borrowing the annual maximum for a four-year undergraduate program will cause parents to reach the aggregate limit before the student completes their degree, leaving them without further access to the Parent PLUS Loan.

On the Parent PLUS Loan application, parents should select the maximum amount option only if they intend to borrow the full $20,000 for the year. To ensure adequate Parent PLUS Loan eligibility throughout the student’s undergraduate program, parents should request a lower amount on the application. For example, request $16,250 in total (aggregate) eligibility per year, split equally over a four-year program.

We strongly recommend that students add their parent(s) as  to their TouchNet account. Authorized Users can view , the , anticipated aid, and anticipated refunds.

For information on tuition and fees, billing, and payment options, please visit the following:

• Tuition and Fees
•  
• Pay Your Bill
• Student Accounts FAQs
• Tuition Insurance
• Refund Policy
• Parent Guide

If a Parent PLUS Loan borrower needs more than the annual borrowing limit or reaches the aggregate limit before the student graduates, there are additional funding options, including external scholarships, an interest-free payment plan, and private loans.

Per the OBBBA, students enrolled less than full-time for an academic year will have their loans adjusted downward in proportion to their enrollment level.

Students enrolled below the full-time enrollment thresholds, including part-time graduate students (e.g., those enrolled less than full-time), would be eligible for only a portion of the annual loan limit.

For undergraduates, full-time enrollment is 12 or more credit hours; for graduate students, it is 9 or more credit hours. Department definitions may vary.

The U.S. Department of Education published its final program regulations that will be effective on July 1, 2026. The program is not changing today, and borrowers do not need to take any action.

Public Service Loan Forgiveness (PSLF) Borrower Scenarios

Borrowers who are pursuing PSLF who have all of their Direct Loans disbursed before July 1, 2026, and do not plan to receive new Direct Loans on or after July 1, 2026:

• The current continue to count toward PSLF eligibility, and the will be added to the list of PSLF-qualifying repayment plans.
• For a month to count as qualifying for income-driven repayment (IDR) discharge and PSLF while in the Repayment Assistance Plan, the payment must be both on time and in full. An on-time payment is a payment that is received on or before the current month’s due date and after the previous month’s due date, and that payment can’t have been used to resolve delinquency. To make a payment in full, the amount paid in the month must be equal to or greater than the monthly payment amount. Additionally, the payment must be matched to a month with certified qualifying employment.
• Borrowers seeking to have their loans discharged un the program will have some or all of their 120 monthly payments made under the consolidation , , or repayment plans. Borrowers who have qualifying employment for those same months may continue to qualify for TEPSLF. TEPSLF also requires that the monthly payment amount for the most recent payment and the payment made 12 months before are at least as much as the borrower would’ve paid under an eligible . For purposes of this requirement, the Repayment Assistance Plan is not an eligible IDR plan.

Borrowers who are pursuing PSLF who have all of their Direct Loans disbursed before July 1, 2026, and who plan to receive new Direct Loans on or after July 1, 2026:

• Payments made under a , including the , will count toward PSLF. When your loans that are first disbursed on or after July 1, 2026, enter repayment, all Direct Loans must be in either the or the Repayment Assistance Plan.
• The Tiered Standard Plan doesn’t count as a qualifying payment toward PSLF or Temporary Expanded Public Service Loan Forgiveness (TEPSLF).
• For a month to count as qualifying for PSLF while in the Repayment Assistance Plan, the payment must be both on time and in full. An on-time payment is a payment received on or before the current month’s due date and after the previous month’s due date, and that hasn’t been used to resolve delinquency. To make a payment in full, the amount paid in the month must be greater than or equal to the monthly payment amount. Additionally, the payment must be matched to a month in which you had certified qualifying employment.
• Since Direct Consolidation Loans that include a Direct PLUS Loan for parents are ineligible for the Repayment Assistance Plan, these loans no longer qualify for PSLF, even if they had previously been eligible for PSLF by being enrolled in the IBR or ICR Plans.
• Borrowers who have some or all 120 monthly payments made under the , , or repayment plans, but have qualifying employment for those months, may continue to qualify for TEPSLF if their most recent monthly payment and the payments made 12 months before are at least as much as they would’ve paid under an eligible IDR plan other than the Repayment Assistance Plan.

Borrowers pursuing PSLF who have all of their loans first disbursed on or after July 1, 2026:

• The doesn’t count toward PSLF or Temporary Expanded Public Service Loan Forgiveness (TEPSLF).
• Payments made only under the count toward PSLF, and only if they are made in full and on time. An on-time payment is a payment that is received in full on or before the current month’s due date and after the previous month’s due date.
• Direct PLUS Loans for parents and Direct Consolidation Loans that include a parent PLUS loan are ineligible for the Repayment Assistance Plan.
• Payments made while in repayment under the Tiered Standard Plan are not eligible for consideration under the PSLF program or TEPSLF opportunity.

The bill eliminates the current Income-Driven Repayment (IDR) plans (IBR, ICR, PAYE, and SAVE) and replaces them with a new Repayment Assistance Program (RAP).

If you have any questions about repayment, please contact your .

Student borrowers whose loans were disbursed before July 1, 2026, and ��Dz�’t plan to receive new loans on or after July 1, 2026, will retain access to many of the existing fixed payment repayment plans and income-driven repayment plans. Borrowers whose loans are all first disbursed before July 1, 2026, will have access to the following repayment plans, if they’re eligible:

Borrowers will not have access to the .

Borrowers can switch between any of the plans for which they’re eligible at any time.

The PAYE and ICR Plans will be retired no later than July 1, 2028. The Department of Education is developing a transition plan for borrowers enrolled in either the PAYE or ICR Plan.

Student Borrower Scenarios

The following scenarios apply to new student borrowers: those whose loans will first be disbursed on or after July 1, 2026, or those whose loans were disbursed before July 1, 2026, and ��Dz�’t plan to receive new loans on or after July 1, 2026.

Undergraduate and Graduate Students

• Students who have at least one loan first disbursed on or after July 1, 2026, will be required to repay all of their eligible Direct Loans under the or the .
• Borrowers who have Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans for graduate or professional students, or a Direct Consolidation Loan that doesn’t include a parent PLUS loan are permitted to repay those loans under the Repayment Assistance Plan or the Tiered Standard Plan.
• Borrowers who have parent PLUS loans or a Direct Consolidation Loan that includes a parent PLUS loan are permitted to repay those loans only under the Tiered Standard Plan.

Parent PLUS Loan Borrower Scenarios

Parent PLUS borrowers with all their Direct PLUS Loans for parents are first disbursed before July 1, 2026, and ��Dz�’t plan to receive new parent PLUS loans on or after July 1, 2026, will retain access to many of the existing fixed payment repayment plans, as well as the Income-Based Repayment (IBR) and Income-Contingent Repayment (ICR) Plans (if they take additional steps).

PLUS borrowers whose loans are all first disbursed before July 1, 2026, will have access to the following repayment plans:

• (requires additional steps)
• (requires additional steps)

Parent PLUS loan borrowers must take additional steps before they can access the IBR or ICR Plans. Specifically, they must consolidate their parent PLUS loans into a Direct Consolidation Loan before they can access either the IBR or ICR Plans. After parent PLUS loans have been consolidated, borrowers must make at least one payment under the ICR Plan before they can access the IBR Plan.

Borrowers who take out a PLUS loan for parents and have any type of Direct Loan, including a Direct Consolidation Loan, that is first disbursed on or after July 1, 2026, are restricted to only the Tiered Standard Plan.

Borrowers who want to repay their parent PLUS loans using the IBR or ICR Plans must have their Direct Consolidation Loan disbursed before July 1, 2026.

The Department of Education is not currently experiencing a delay in processing consolidation applications, but does anticipate that a large number of borrowers will apply to consolidate their loans between now and July 1, 2026.

The Department strongly recommends that borrowers who must consolidate their loans in order to access the IBR, ICR, and PAYE Plans apply for their consolidation loan at least three months before July 1, 2026, to ensure that their consolidation loan is disbursed before July 1, 2026.

Borrowers who have a Direct Consolidation Loan that includes a PLUS loan for parents and want to access the IBR or ICR Plans can enroll in either plan at any time, with the following two restrictions:

1. The ICR Plan will be eliminated no later than July 1, 2028. Borrowers who have a Direct Consolidation Loan that includes a PLUS loan for parents and who want to access the IBR Plan must first make a single payment while enrolled in the ICR Plan before the ICR Plan is eliminated no later than July 1, 2028.
2. If at any point a borrower receives any type of Direct Loan (including a Direct Consolidation Loan) first disbursed on or after July 1, 2026, they will have access to only the Tiered Standard Plan, even if they had been enrolled in the IBR or ICR Plans. Borrowers who take all of the required steps to access the IBR or ICR Plans and then take out any type of Direct Loan that is first disbursed on or after July 1, 2026, will have their servicer move their loans already in repayment to the Tiered Standard Plan. They’ll have the option to apply for and enroll in the for their Direct Loans that aren’t parent PLUS loans or Direct Consolidation Loans that ��Dz�’t include parent PLUS loans.

OBBBA eliminates the ICR and PAYE Plans entirely in the future. The Department of Education will publish more information about the ICR enrollment deadlines that borrowers with consolidated parent PLUS loans must meet before the ICR Plan is eliminated, so they can continue to access the IBR Plan.

PLUS loan borrowers whose loans are first disbursed before July 1, 2026, and who plan to receive new loans on or after July 1, 2026, have the following repayment options:

• Borrowers who have parent PLUS loans or a Direct Consolidation Loan that includes a parent PLUS loan, or any other type of Direct Loan, any of which are first disbursed on or after July 1, 2026, are permitted to repay the Direct Consolidation Loan or the parent PLUS loan under only the .
• Borrowers who have other types of Direct Loans that are not a PLUS loan for parents, or a Direct Consolidation Loan that includes a PLUS loan for parents, may repay those other loans under either the or the Tiered Standard Plan.
• Borrowers who have a Direct Consolidation Loan that paid off a Direct Consolidation Loan that paid off a PLUS loan for parents (sometimes referred to as a double consolidation) or any other type of Direct Loan, any of which is first disbursed on or after July 1, 2026, have access to only the Tiered Standard Plan for their Direct Consolidation Loan or parent PLUS loans.