Significant adjustments to federal student loan programs, stemming from legislation known as the One Big Beautiful Bill, are now in effect for borrowers enrolling in courses after Wednesday. These changes introduce stricter annual and lifetime borrowing limits for graduate students and parents of undergraduate students.
Under the revised terms, graduate students utilizing the Grad PLUS loan program will face a new annual cap of $20,500. The total lifetime borrowing limit for this group has also been reduced to $100,000. Previously, graduate students could borrow up to the full cost of attendance.
Professional students enrolled in specific programs will also see their borrowing capped at $50,000 per year, with a lifetime maximum of $200,000. This also represents a reduction from the previous provision allowing loans up to the cost of attendance.
For parents seeking to finance their children's education through the Parent PLUS loan program, new annual and total borrowing limits have been established. Parents will now be capped at $20,000 per year in loans for a student, with a cumulative limit of $65,000 per student. Previously, Parent PLUS loans could cover the full cost of attendance.
These changes aim to modify the landscape of student financial aid, affecting how current and future students can finance their higher education.