• Maximum Pell Grant remains $7395.
• Students with an SAI of $14,790 or higher are not eligible for Pell.
• Family-owned businesses and farms where the family lives are no longer counted as FAFSA assets.
• Foreign earned income exclusions will now be considered when determining Pell eligibility.
• All students seeking federal aid must complete the 2026-2027 FAFSA.

Beginning July 1, 2026, new federal borrowing limits apply to Parent PLUS Loans.

Parents may borrow:

• Up to $20,000 per academic year for each dependent student; and
• Up to $65,000 total for each dependent student.

These limits apply to all parents combined. Regardless of whether one parent or multiple parents borrow on behalf of a student, the annual and aggregate limits remain the same.

Parent PLUS Legacy Provision (interim exception)

Parents of continuing students may continue to borrow Parent PLUS loans under the previous rules, which allows loans up the to full cost of attendance, minus other financial assistance, if the student:

• *Enrollment in a program of study as of June 30, 2026.
• Receipt of a Direct Loan (or Parent PLUS Loan) for that program prior to July 1, 2026.
• Continuous enrollment at the same institution and pursuit of the same credential level without a break in enrollment.

*The term “program of study” for undergraduate students is defined by the institution’s credential level and OPEID, allowing for changes in major as long as the credential level remains the same.

Students may qualify for the interim exception during their expected time to degree. Beginning July 1, 2026, a student’s expected time to degree is defined as the lesser of the following:

• Three academic years (or the equivalent); or
• The remaining length of the student’s degree program, calculated by subtracting the portion of the program already completed from the program’s published length.

For this calculation:

• The program length is the minimum amount of time required for a full-time student to complete the degree program, as stated in the institution’s catalog, marketing materials, or other official publications.
• The portion completed is the amount of the degree program the student has finished as of the date the determination is made.

A withdrawal, break in enrollment, or change in program or degree level may end eligibility under this provision.

What Current Parent Borrowers Need to Know 

What New Parent Borrowers Need to Know 

Beginning July 1, 2026, the Federal Direct Graduate PLUS Loan Program will no longer be available to new borrowers.

Students who have not received a Direct Unsubsidized Loan disbursement before July 1, 2026, will be subject to the following borrowing limits.

Graduate Students

• Annual limit: $20,500
• Aggregate graduate limit: $100,000
• Overall federal student loan lifetime limit: $257,500

Professional Students

• Annual limit: $50,000
• Aggregate professional limit: $200,000
• Overall federal student loan lifetime limit: $257,500

Students who borrow as both graduate and professional students are subject to a combined aggregate borrowing limit of $200,000.

Graduate and Professional Legacy Provision (interim exception)

Continuing graduate students may continue to borrow Grad PLUS loans under the previous rules, which allows loans up to the full cost of attendance, minus other financial assistance, if the student:

• was enrolled in a degree program at a school as of June 30, 2026;
• received at least one Direct Loan for such degree program, before July 1, 2026; and
• are enrolled at the same school and are seeking the same degree after July 1, 2026, and have not ceased to be enrolled seeking the same degree at the same school at any point on or after July 1, 2026.

Students may qualify for the interim exception during their expected time to degree. Beginning July 1, 2026, a student’s expected time to degree is defined as the lesser of the following:

• Three academic years (or the equivalent); or
• The remaining length of the student’s degree program, calculated by subtracting the portion of the program already completed from the program’s published length.

For this calculation:

• The program length is the minimum amount of time required for a full-time student to complete the degree program, as stated in the institution’s catalog, marketing materials, or other official publications.
• The portion completed is the amount of the degree program the student has finished as of the date the
• A withdrawal, break in enrollment, or change in program or degree level may end eligibility under this provision.All borrowers remain subject to the federal lifetime borrowing limit.

Loan Limit Flowchart for Grads and Professionals 

What Graduate Students Need to Know 

The $257,500 lifetime limit includes all federal student loans borrowed by the student, including:

• Undergraduate loans,
• Graduate loans,
• Graduate PLUS Loans,
• Professional student loans, and
• Applicable consolidation loans.

Loans that have been canceled, discharged, forgiven, or paid by the student continue to count toward the lifetime limit.

Parent PLUS Loans borrowed by a parent on behalf of a dependent student do not count toward the student’s lifetime limit.

Beginning July 1, 2026, annual federal loan eligibility for new borrowers enrolled less than full-time will be adjusted based on enrollment status.

For example, a student enrolled three-quarter time during the fall and spring semesters would receive 75% of the standard annual loan limit.

This requirement applies to:

• Undergraduate students (excluding Parent PLUS Loans),
• Graduate students,
• Professional students, and
• Students using legacy loan limits.

Enrollment will be reviewed before each loan disbursement. If enrollment changes after a disbursement has been made, future disbursements may be reduced.

Half-Time Enrollment Requirement

The minimum enrollment requirement for federal student loans has not changed.

Students must still be enrolled at least half-time to be eligible for federal student loans. Half-time enrollment requirements vary by academic program.