Parent PLUS loan limit 2026: $65,000 per student

New Parent PLUS borrowing is capped at $20,000 a year and $65,000 in total per student, counting every parent who borrows for that child. Before July 1, 2026, parents could borrow up to the cost of attendance minus other aid, with no lifetime limit. Source · StudentAid.gov, OBBBA definitions

Families already borrowing for a student at the same school can keep the old limits for a while. For everyone else, the cap means a four-year degree can no longer run entirely on Parent PLUS.

The cap counts both parents, per child

The $65,000 limit is per student, not per parent. StudentAid.gov’s example: if one parent borrows $50,000 for a child and the other borrows $15,000 for the same child, they’ve hit $65,000 between them and can’t borrow more for that child. They can borrow up to another $65,000 for a second child. Source · StudentAid.gov, OBBBA definitions

The cap runs out in year four

At $20,000 a year, the $65,000 limit runs out partway through year four. Add the student’s own Direct Loans at the dependent-student limits and here’s the most federal loan money available.

Dependent students can borrow up to $31,000 in Direct Loans as undergraduates. If a parent applies for PLUS and is turned down for adverse credit, the student can borrow at the higher independent-student limits instead. Source · StudentAid.gov, OBBBA definitions

Borrowing the full cap: the fee and the payment

Parent PLUS carries a 9.07% interest rate for 2026-27 and a 4.228% origination fee taken from each disbursement. So borrowing the full $65,000 puts about $62,252 toward school.

New Parent PLUS loans can’t be repaid under the Repayment Assistance Plan (RAP), the new income-driven plan. They’re repaid on the Tiered Standard Plan, with a term set by the balance. Source · StudentAid.gov, OBBBA definitions

This example treats the full balance as borrowed at once at this year’s rate. Real loans are borrowed year by year, each at the rate set for that year, and interest builds while the student is in school unless you pay it.

Who keeps the old limits

The interim exception lets some families keep borrowing under the pre-July 2026 rules. The student qualifies if they: Source · StudentAid.gov, OBBBA definitions

• were enrolled in a program at a school as of June 30, 2026;
• had at least one Direct Loan, or a parent had a Parent PLUS loan for them, for that program before July 1, 2026; and
• stay enrolled at the same school, seeking the same credential, with no break (an approved leave of absence doesn’t count as one).

The exception lasts for the lesser of three academic years or the time left in the program. Changing majors keeps it; changing credential level or schools generally ends it. Families who qualify can’t opt out of it.

1. File the FAFSA and see the grants

   Pell and state grants reduce what anyone has to borrow.

2. Ask the school about the interim exception

   If your student borrowed before July 1, 2026, the aid office can tell you how long the old limits last.

3. Plan all four years before year one

   At the full $20,000 a year, the cap leaves $5,000 for year four.

4. Price the payment

   See the monthly payment in the loan repayment calculator before you sign.

Frequently asked questions

Does each child get a separate cap?

Yes. The limit is per student, so parents can borrow up to $65,000 for each child, counting both parents’ loans for that child together.

Can my child borrow more if we hit the cap?

Not because of the cap alone. The higher independent limits apply when a parent is denied PLUS for adverse credit, not when the cap is reached. Past the cap, grants, savings or a private loan cover the rest, so count the grants first.

Is the cap per year or for the whole degree?

Both: $20,000 a year and $65,000 in total per student.

Your next step is the grant total

Every grant dollar is a dollar no one borrows at 9.07%. The aid check shows 2026-27 Pell, state grants and loan limits in about two minutes.