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- The “One Big, Beautiful Bill” law imposes a stricter limit on the amount of Parent PLUS loans that college student families can borrow. It also reduces the amount of supplementary loans and unsubsidized loans that many graduate students can borrow.
- However, these new loan limits will only affect students who are borrowing for the first time in the fall semester of 2026 and beyond.
The new student loan limits are scheduled to take effect for the 2026-27 school year, but their impact will be gradual over the next few years. If you’re thinking about getting a loan, here’s what you need to know.
Many of the new restrictions created by “One Big, Beautiful Bill” will reduce the amount of student loans that families and graduate students can take out. However, a key exception included in the legislation means these restrictions will not affect those who already have student loans.
Why is this important?
Families and students should plan ahead how much they will need to borrow during the full course of college and graduate school. Borrowing too much early on can create financing gaps later, and exhausting federal loan options without sufficient scholarships may force students to rely on more expensive private loans.
Several types of loans are affected by the new restrictions: Parent Plus Loans, which a college student’s parents use to help pay for college; Graduate Loans PLUS, which are intended for graduate students; and unsubsidized loans for graduate students, which accrue interest while the borrower is in school.
However, any student enrolled in a higher education institution who has already taken one of these loans, or obtained a loan on their behalf before 30 June 2026, will not be subject to the new restrictions. It is also worth noting that the limits for subsidized and unsubsidized loans for undergraduate students will remain unchanged.
This means that for the fall 2026 semester, these limits will primarily affect families of college freshmen and first-year graduate students who are taking out a loan for the first time during the upcoming academic year.
Here are the differences that some Parent PLUS borrowers and graduate students will encounter, depending on whether they are existing borrowers or obtaining new loans.
PARENT BORROWERS PLUS
Current parent plus borrower
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An amount can be borrowed up to the cost of attendance at the student’s college, minus the financial aid the student receives, with no total limit.
The new parent plus the borrower
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You can borrow up to $20,000 per year per child, with a total amount of up to $65,000 per child.
Graduate Plus Borrowers
Current Grad PLUS borrower
Borrowers graduating from unsubsidized loans
The current borrower of an unsubsidized loan
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“Non-professional” graduate students and “professional” graduate students have the same loan limits.
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All graduate students can take out up to $20,500 per year in unsubsidized loans.
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They can borrow a total of $138,500 in federal loans during undergraduate and graduate studies.
The new borrower of the unsubsidized loan
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“Non-professional” graduate students, who include nursing, engineering, and social work students, among others, have a minimum. “Professional” students, such as medical and law students, have a higher limit.
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“Non-professional” graduate students can get $20,500 per year, and “professional” students can get $50,000 per year in unsubsidized loans.
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“Non-professional” graduate students can take out $100,000 in total, and “professional” students can borrow a total of $200,000 in unsubsidized loans.
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