New student loan limits are coming: Who gets hit, who’s exempt, and what borrowers need to know

New student loan limits will start in the 2026-27 school year, but the rules will be phased in over time. The changes come from a law called the "One Big, Beautiful Bill", which reduces the amount families and graduate students can borrow. Students and families who already have federal student loans before June 30, 2026, will not be affected by the new limits, said Investopedia.

The new limits mainly affect Parent PLUS loans, Graduate PLUS loans, and graduate unsubsidized loans. Undergraduate subsidized and unsubsidized loans are not changing. For the 2026 fall semester, the new rules mainly affect college freshmen and first-year graduate students taking loans for the first time.

Parent PLUS Loans:

• Existing Parent PLUS borrowers can borrow up to the college’s cost of attendance minus any financial aid, with no total cap.
• New Parent PLUS borrowers can borrow up to $20,000 per year per child, and a total of $65,000 per child, as stated by Investopedia.

Graduate PLUS Loans:

• Existing Grad PLUS borrowers can borrow up to the school’s cost of attendance minus any aid.
• New Grad PLUS borrowers cannot take out PLUS loans anymore.

Graduate Unsubsidized Loans:

Existing graduate students

• Annual loan limit: $20,500
• Total limit (undergrad + grad): $138,500

New graduate borrowers:

Non-professional students (like nursing, engineering, social work)

• Annual limit: $20,500
• Total limit: $100,000

Professional students (like medicine, law)

• Annual limit: $50,000
• Total limit: $200,000

Families and students need to plan carefully. If they borrow too much early, they might run out of money later. Then, they may have to take private loans, which usually cost more, said Investopedia. Existing borrowers are mostly safe, while new students and first-time borrowers need to know the lower limits and plan accordingly.

FAQs

Q1. Who will be affected by the new student loan limits in 2026?

New college freshmen and first-year graduate students taking federal loans for the first time will face lower limits.

Q2. Are existing student loan borrowers affected by the 2026 rules?

No, students who already have federal loans before June 30, 2026, will not be affected.