LAS VEGAS (FOX5) — Changes to student loan borrowing and repayment are coming this summer, primarily affecting graduate students.
The changes are part of the One Big Beautiful Bill Act that was signed into law last year. Graduate PLUS loans are being eliminated for students starting new programs.
The law also created caps on federal borrowing, a new total lifetime limit across all direct loans, a new standard repayment plan, and a new income-based repayment plan.
“It means now that students will have to be more intentional,” Nora Carroll, director of financial aid and scholarships at UNLV, said. “Yes, I think now students will have to be more intentional about their entire education.”
Graduate PLUS loans eliminated
Graduate PLUS loans are being eliminated for new borrowers. Current borrowers can continue for up to three years or the remainder of their program, whichever is less. They must stay in the same program to remain eligible. Students who take a leave of absence or withdraw on or after July 1, 2026, lose legacy borrowing protections.
New borrowing caps
Graduate students will be limited to $20,500 per year and $100,000 aggregate. Professional students will be limited to $50,000 per year and $200,000 aggregate.
The new total lifetime limit across all direct loans is $257,500, excluding Graduate PLUS loans and Parent PLUS loans borrowed on a student’s behalf.
Parent PLUS loans are being capped at $20,000 per year per child and $65,000 lifetime per child, instead of the cost of attendance.
Families who previously borrowed will be grandfathered.
“Undergraduate students do rely on Parent PLUS loans,” Carroll said. “I think with those being capped, you’re going to see some folks just not being able to maybe attend where they wanted to attend or where they’ve been accepted. They might have to reconfigure where they’re going, maybe stay in state, start at a community college.”
Additional changes
The Department of Education will prorate loans for students enrolled in less-than-full-time status.
The law created a new income-based repayment plan. Some existing student loan repayment plans will be eliminated on July 1, 2028.
Carroll said students need to budget intentionally, knowing where they are applying, what the cost of attendance at those schools is, and what that means over the course of their upcoming careers.
Most changes will take effect starting July 1. They will be in place for the 2026-27 academic year.
Undergraduate borrowing limits remain unchanged.
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