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Undergraduate Programs:

• $31,000 limit for dependent students (no change)
• $57,500 limit for independent students (no change)
• Updated to Parent PLUS Loans below

Graduate Programs:

• $20,500 a year for graduate students (no change)

• The aggregate limit is capped at $100,000 for graduate students

  • $100,000 limit applies to graduate loans only (does not include loans from undergraduate program)

  • This increases the amount a graduate student can take overall. The old limit for graduate students was $138,500 combined total (undergraduate and graduate programs). Meaning if a student took the full $57,500 as an undergraduate, they would only have $81,000 left for their graduate program

  • $100,000 is a little more than 4.5 years of loans in a graduate program

• Updates to Graduate PLUS Loans below

Professional Degree Programs:

Students enrolled in professional programs (PsyD) have a new annual limit of $50,000 and an aggregate limit of $200,000.

Lifetime Borrowing Limit:

$257,500 borrowing cap on all federal student loans, excluding borrowed Parent PLUS loan amounts and limited exceptions

Schedule of Reductions (SOR)

Institutions are required to prorate (reduce) annual loan amounts in direct proportion to the percentage of full-time status in which the student is enrolled for the undergraduate, graduate, and doctoral programs; with 12 units being considered full-time status for the undergraduate program. This applies to the Direct Subsidized Loan, Direct Unsubsidized Loan, and Graduate PLUS Loan programs. This does not apply to Parent PLUS Loan program.

The formula used to determine the adjusted annual loan limit is as follows:

Adjusted Loan Limit = (24 Units/Actual Units of Enrollment​) × Full-Time Annual Loan Limit

For more information on this calculation please visit our loan page under that Calculation of Loan Eligibility section.

New Borrowing Caps:

For loans borrowed on or after July 1, 2026

• $20,000 per year cap per student
• $65,000 aggregate limit per student 
• Legacy provisions for existing parents of students

Legacy Provisions

Legacy Exceptions for Current Borrowers:

Parents of currently enrolled students can bypass the new $20,000/$65,000 limits and continue borrowing under the legacy rules that allow for yearly borrowing up to the Cost of Attendance with no lifetime limit if they meet legacy criteria.

Eligibility for Legacy Borrowing:

The student must remain continuously enrolled in the same program of study at the same institution as they were enrolled in as of June 30, 2026; AND

either the parent must have had a Parent PLUS Loan disbursed for that specific program, OR the student must have had a Direct Subsidized/Unsubsidized Loan disbursed for that same program prior to July 1, 2026.

Duration of Legacy Exception:

The lesser of:

• Three (3) additional academic years; OR
• The remainder of the student's expected time to complete their current program.

Important: If a student changes their program of study or has a break in enrollment, the legacy status is forfeited, and any future Parent PLUS borrowing will be subject to the new $20,000 and $65,000 limits.

Moving from Legacy to the New Rules

Once a student reaches the maximum time limit and if the student has not reached the new Parent PLUS lifetime loan limit of $65,000 they may be eligible to borrow under the new PLUS Loan program which has a yearly limit of $20,000.

• To see if you are under the new $65,000 limit please log into and view your prior Parent PLUS Loan amounts. 

Program Elimination:

The Federal Graduate PLUS Loan program is officially eliminated effective July 1, 2026. Graduate students can no longer use this program to fill funding gaps up to the cost of attendance unless they meet a legacy exception.

Legacy Provisions

Legacy Exceptions for Current Borrowers:

A student can continue to access the legacy Graduate PLUS loans and remain exempt from the new $100,000 graduate aggregate limit and $257,500 lifetime caps if they meet the legacy criteria.

Eligibility for Legacy Borrowing:

• The student must remain continuously enrolled in the same program of study at the same institution as they were enrolled in as of June 30, 2026; AND
• have had a federal Direct Loan (Subsidized, Unsubsidized, or Graduate PLUS) disbursed for that exact graduate program before July 1, 2026.

Duration of Graduate Exception:

The lesser of:

• Three (3) additional academic years; OR
• The remainder of the student's expected time to complete their current program.

Moving from Legacy to the New Rules

Once a student reaches the maximum time limit they will no longer be eligible for a Graduate PLUS Loan AND the new loan limits go into effect.

• If a Graduate student has borrowed beyond the $100,000 graduate aggregate limit or $257,500 lifetime cap they will not be eligible for a direct unsubsidized loan.

For Future Borrowers (New Loans on/after July 1, 2026):

The Tiered Standard Plan:

• Replaces the traditional standard plan for new loans. Monthly payments are determined by a fixed timeline based on your total accumulated debt:
  • Less than $25,000: 10-year repayment term
  • $25,000 to $49,999: 15-year repayment term
  • $50,000 to $99,999: 20-year repayment term
  • $100,000 or more: 25-year repayment term

Repayment Assistance Plan (RAP):

This is the new income-driven plan. It features loan forgiveness after 30 years (360 payments), waives unpaid interest, matches principal payments up to $50/month, and monthly payments are based on total adjusted gross income.

• Please Note: Parent PLUS borrowers cannot use the RAP plan under any circumstances.

For Current Borrowers (No New Loans after June 30, 2026):

Fixed-Payment Plans

Current borrowers retain access to traditional Standard (10-year), Graduated, Extended, and Income-Based Repayment (IBR) plans.

Income-Based Repayment (IBR):

Retains its dual-track structure:

• Old IBR (Loans before July 2014): 15% of discretionary income; 25-year forgiveness.
• New IBR (Loans on/after July 2014): 10% of discretionary income; 20-year forgiveness.
• Monthly payments remain capped at what the 10-year Standard payment would have been when entering the plan.
  

Sunset of SAVE, PAYE, and ICR:

The law officially sunsets the PAYE and ICR tracks. Borrowers currently utilizing ICR or PAYE must proactively switch to another eligible plan before July 1, 2028, or they will automatically be transitioned into RAP (or into IBR for specific legacy Parent PLUS consolidations). 

Limits on Deferments and Forbearance

For new loans originating after July 1, 2027, traditional Economic Hardship and Unemployment Deferments will terminate. Additionally, operational forbearances will be restricted to a maximum cap of 9 months within any rolling 24-month window.

• What happens if I fail to select a plan when entering repayment?

  • If your loans are eligible for income-driven tracks, you will automatically be assigned to the Repayment Assistance Plan (RAP). If your loans are ineligible for RAP (such as certain Parent PLUS frameworks), you will defaulted into Income-Based Repayment (IBR).

• Can I still apply for a Graduate PLUS Loan?

  • Only if you explicitly qualify for the limited legacy exception by having continuous enrollment and a matching prior loan disbursement from before July 1, 2026. New graduate students entering higher education after June 30, 2026, cannot apply.

• Are undergraduate student borrowing limits changing?

  • No. The One Big Beautiful Bill Act makes no alterations to annual or aggregate loan maximums for undergraduate dependent or independent students.

 

 

The information provided on this page reflects our current financial aid operational understanding and interpretation of the federal One Big Beautiful Bill Act based on the Department of Education's Reimagining and Improving Student Education (RISE) regulatory publications.

Because the Department of Education continues to issue rolling guidance, these interpretations remain subject to change. This page is intended to serve as a general resource and should not be considered official or final. We encourage students and families to regularly check for updates and consult directly with our Financial Aid Office for the most current information regarding their specific situation.