"Beginning July 1, 2026, the Department of Education will begin implementing President Donald Trump's student-loan repayment overhaul, which he signed into law in his "big beautiful" spending legislation. The overhaul includes new income-driven repayment plans and lower borrowing caps - including for the Parent PLUS program, which allowed parents to borrow up to the full cost of attendance for their kids' educations. The department is planning to impose a $65,000 lifetime borrowing limit per dependent student, or $20,000 per year."
"The new borrowing cap would apply to parents taking out new loans in 2026. Existing Parent PLUS borrowers who took out loans before July 1, 2026, can continue borrowing at their existing terms until 2028. Additionally, parents who take out loans after July 1 will only have access to the standard repayment plan and will not be able to enroll in the new Repayment Assistance Plan, which the Department of Education is rolling out to replace existing income-driven repayment plans."
Beginning July 1, 2026, Parent PLUS loans will be subject to a $65,000 lifetime borrowing limit per dependent, capped at $20,000 per year. Existing Parent PLUS borrowers who took loans before July 1, 2026, can continue borrowing under prior terms until 2028. New Parent PLUS loans after July 1 will only qualify for the standard repayment plan and cannot enroll in the new Repayment Assistance Plan that replaces income-driven plans. The changes introduce new income-driven repayment options and lower borrowing caps. The cap could leave some parents without sufficient federal financing for college. A Brookings analysis found 7.7% of undergraduates had Parent PLUS loans averaging $16,272 in 2019–2020.
Read at Business Insider
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