This table compares distinct federal student loan rules before and on or after July 1, 2026. Information included here highlights borrowing limits as well as loan availability for students and parents.
| Borrower Type or Rule | Before July 1, 2026 | On of After July 1, 2026 |
|---|---|---|
| Undergraduate Students | Direct Subsidized and Unsubsidized Loans available | No change to undergraduate Direct Loan limits Loan amounts will be prorated if not full time each semester |
| Parent PLUS Loans | Parents could borrow up to the full Cost of Attendance with no set cap | Annual limit: $20,000 per student Lifetime limit: $65,000 per student |
| Graduate PLUS Loans | Available and allowed borrowing up to full Cost of Attendance | Eliminated for new borrowers |
| Graduate Direct Unsubsidized Loans | Annual limit: $20,500 Lifetime limit: $138,500 (included undergraduate loans) | Annual limit: $20,500 (unchanged) Lifetime limit: $100,000 (undergraduate loans excluded) |
| Lifetime Federal Loan Cap (Students) | No single lifetime borrowing cap | $257,500 lifetime cap on all federal student loans (Parent PLUS excluded) |
| Enrollment Impact | Full annual loan eligibility if enrolled at least half‑time | Loan amounts now reduced for those enrolled less than full time |
| School Authority | Institutions generally could not limit federal loans by program | Schools may set lower loan limits by program in limited circumstances |
Questions?
Find answers to questions that will help you understand what’s new and how these changes may affect your borrowing and financial planning.
What are the Federal Loan Program lifetime loan limits?
All students may borrow up to $257,500 total in federal student loans over their lifetime. This total does not include Parent PLUS loans that a parent borrowed on behalf of an undergraduate student. Only loans taken out in the student’s own name count toward the limit.
What does it mean to be a “Legacy” borrower?
Some existing federal PLUS loan borrowers may qualify under the prior rules (no lifetime limit, grandfathered repayment plan options,etc.), now called “Legacy.” To qualify for Legacy status, students must meet specific criteria, including being on track to complete their program within the standard program length.
- Standard Program Length means undergraduate students in a 4-year bachelor’s degree program have 4 years to complete the degree.
- Graduate students in a 2-year master’s degree program have 2 years to complete the degree.
The academic year includes standard semesters of fall and spring, whether enrolled full or part time. If a student has not completed the degree within that period and is enrolled for more than the standard program length, they are considered “non-Legacy” and are no longer eligible for a PLUS loan.
What are loan reductions?
The One Big Beautiful Bill Act includes a mandated formula called Schedule of Reduction (SOR). Institutions are required to prorate annual loan amounts in direct proportion to the percent of credit hours in which the student is enrolled.
Do I still get my full loan if I am enrolled at least half time?
Not any longer. Students must still be enrolled at least half time to be eligible for their loans; however, the loan amount is tied to the student’s actual enrollment status.
- Undergraduate
- Half time = 6 credit hours
- Full time = 12 credit hours
- Graduate
- Half time = 5 credit hours
- Full time = 9 credit hours
Are there changes to the Subsidized and Unsubsidized Loan Program?
There are no changes to the subsidized or unsubsidized loan programs.