OBBBA student loan caps take effect, ending Grad PLUS for new borrowers
On July 1, 2026, the most sweeping changes to federal student lending in a generation took effect. Congress buried them in a 940-page budget bill, the One Big Beautiful Bill Act (OBBBA), signed by President Trump on July 4, 2025. As of today, the federal Grad PLUS Loan Program no longer exists for new borrowers. Parent PLUS loans are capped at $20,000 per year per child. Every student faces a $257,500 lifetime ceiling across all federal borrowing combined.
Sourcesgovtrack.usH.R. 1fsapartners.ed.govGEN-25-04 Dear Colleague Letter
- Story date
- 2026-07-01
- Questions
- 10
- Sources
- 8