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Student Loans Change: New Rules Impact Borrowing
2 Aug
Summary
- New federal student loan rules took effect July 1, 2026.
- Loan amounts now depend on enrollment level under Loan Schedule Reduction.
- Parent PLUS loans face new annual and lifetime borrowing limits.
Beginning July 1, 2026, new federal student loan regulations are in effect for the 2026-27 academic year and future school years. These changes, part of a broader federal savings package, introduce revised borrowing limits and eligibility requirements for federal student loans.
A key modification is the Loan Schedule Reduction, which means loan amounts will be disbursed proportionally to a student's credit load. Previously, students only needed to be enrolled at least half-time to secure their full loan eligibility.
This adjustment is particularly significant for students balancing education with work and family responsibilities, as many attend college on a less-than-full-time basis. The new rules will require them to plan and finance their education differently.
Furthermore, Parent PLUS loans now have a $20,000 annual limit and a $65,000 lifetime cap per student. These loans, taken out by parents on behalf of students, are crucial for covering costs beyond subsidized and unsubsidized loans, including tuition, books, and living expenses.
