Federal Student Loan Rules Cap Parent PLUS at $20,000 as Grad PLUS Ends July 1
Updated
Updated · KSL.com · Jun 8
Federal Student Loan Rules Cap Parent PLUS at $20,000 as Grad PLUS Ends July 1
3 articles · Updated · KSL.com · Jun 8
Summary
July 1 marks a major reset for federal student loans, with new caps hitting Parent PLUS and graduate borrowing while some repayment choices narrow.
Parent PLUS loans, once available up to full attendance costs, will be limited to $20,000 a year and $65,000 total per student; new lifetime borrowing is generally capped at $257,000.
Grad PLUS will be eliminated entirely, replaced by limits of $20,500 annually and $100,000 total for graduate students, and $50,000 annually and $200,000 total for professional students.
Part-time enrollment will now reduce loan eligibility proportionally, and borrowers taking loans before July 1 can keep current plans, though Pay As You Earn and Income-Contingent Repayment expire in 2028.
University of Utah aid director Anthony Jones said schools got only two months to implement the changes and urged borrowers to contact servicers and keep detailed records of every communication.