Tuesday, July 15, 2025

NEW GOV'T STUDENT-LOAN RESTRICTIONS EXPLAINED---EVERYTHING YOU NEED TO KNOW ABOUT THE CHANGES

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Borrowing limits

Federal loans taken out by parents for their children under the Parent PLUS program will be capped at $20,000 annually, with a total cap of $65,000 per child.

Those changes begin July 1, 2026.

That is a massive change from the previous Parent PLUS program, which allowed parents to take out federal loans covering the complete cost of their child’s tuition.

The changes also affect graduate student Grad PLUS loans, which beginning July 2026 will be limited to $20,500 annually for students applying for them and $100,000 total for those seeking general master’s degrees, according to CBS News.

For career-path degrees such as medicine or law, annual caps will be $50,000 annually and $200,000 total. READ MORE AT New gov’t student-loan restrictions explained: Everything you need to know about the changes

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