Federal student loan limits from July 2026
New annual and aggregate limits for graduate and professional students, the end of Grad PLUS for new borrowers and a cap on Parent PLUS.
Sourced from official pages · Updated September 30, 2026💡 Key takeaways
- From July 2026, new graduate borrowers face annual limits of $20,500 and aggregate limits of $100,000; professional students $50,000 and $200,000.
- Grad PLUS is being eliminated for new borrowers and Parent PLUS capped.
- Students already borrowing may be treated differently under transition rules.
- If federal limits do not cover your costs, plan for scholarships, savings, employer help or private loans.
New limits for new borrowers (from July 2026)
| Student | Annual limit | Aggregate limit |
|---|---|---|
| Graduate | $20,500 | $100,000 |
| Professional | $50,000 | $200,000 |
The Department of Education is also eliminating Grad PLUS for new borrowers and capping Parent PLUS loans. Students already enrolled and borrowing may be treated differently under transition rules.
What it means
Students who need more than the federal limit may turn to scholarships, savings, employer help or private loans. If you use private loans, compare the APR, fees and protections carefully; see federal vs private student loans.
Note
Federal student loan rules changed on July 1, 2026. Which repayment plans and limits apply to you depends on when your loans were first disbursed. Confirm your options on studentaid.gov or with your loan servicer.
How to plan for a gap
- Add up total costs of attendance for the whole program.
- Subtract grants, scholarships and savings.
- Compare the federal limit with the remainder.
- Compare private loan APR, fees and protections carefully; see federal vs private.
Check your status
Whether you are treated as a new borrower depends on when your loans were first disbursed. Confirm on studentaid.gov.
🔤 Key terms
| Term | Meaning |
|---|---|
| Annual limit | The most you can borrow in an academic year |
| Aggregate limit | The most you can borrow in total |
| Grad PLUS | A federal loan for graduate students being eliminated for new borrowers |
| Parent PLUS | A federal loan for parents of undergraduates, being capped |
Options if you hit the limit
- Look for scholarships and assistantships.
- Check employer tuition help.
- Choose a lower-cost program if possible.
- Compare private loans carefully.
⚠️ Common mistakes to avoid
- Assuming the old Grad PLUS option is still available to new borrowers.
- Not budgeting for a funding gap.
- Relying on a private loan without comparing federal protections.
🛠️ Try it yourself
❓ Frequently asked questions
Are the new limits retroactive?
Transition rules may apply to students already borrowing; check studentaid.gov.
What replaced Grad PLUS?
The limits above; see the sources for details.
Do the limits apply to parents?
Parent PLUS loans are being capped; check the ED announcement.
Do limits apply per year or in total?
Both; see the table above.
📚 Sources
This guide is general information, not financial, tax or legal advice. Rules and limits change; confirm with the sources above or a licensed professional.