In July, the U.S. government passed legislation that has changed the loan landscape by adding limits to the amount of government-funded loans that students can take out.
Federal student loans will now have a total lifetime cap of $257.5K for all undergraduate and graduate school loans, including caps of $20,500 per year with a $100K total limit for graduate programs and $50K per year with a $200K total limit for professional programs (such as law, medical, and business school). There will also be a lifetime cap of $65K per child for Parent PLUS loans. Previously, students used Grad PLUS loans if they needed to borrow beyond the prior cap of $138.5K, however, Grad PLUS loans will be eliminated with the new rules that will take effect on July 1, 2026.
We recognize that this may cause you concern and want to share resources and alternative options available to you. Visit this page with federal loan updates to read more about these changes and resources.
