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New Student Loan Caps Impact Families Starting 2026

1/2/2026

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Story summary
  • Starting July 1, 2026, federal student loan changes will affect new borrowers and families of high school seniors.
  • The One Big Beautiful Bill caps annual Parent PLUS borrowing at $20,000 and total per child at $65,000.
  • The measure may hinder middle-to-higher income families who do not qualify for Pell Grants.
  • Parent PLUS borrowers must consolidate loans to keep access to income-driven repayment plans, which will be eliminated for non-consolidated loans.