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Paying for college as a parent: what changed in 2026

Starting July 1, 2026, federal Parent PLUS loans have limits: $20,000 a year and $65,000 total for each child. See what that means for your family in about five minutes.

Plan your Parent PLUS borrowing

What changed

The new limits

For school years starting on or after July 1, 2026, all parents together can borrow up to $20,000 a year in Parent PLUS for each dependent student, and $65,000 in total for that student.

Parent PLUS borrowed before July 1, 2026 counts toward the $65,000. Loans you have already repaid still count too.

Parent PLUS also can never be more than the cost of attendance minus other aid.

As of · Source: 34 CFR 685.203; Final rule, 91 FR 23768 (May 1, 2026); FSA Electronic Announcement LOANS-26-05 (April 24, 2026, updated May 7, 2026)

If your student was already enrolled

The new limits may not apply for a while if your student was enrolled in their program on June 30, 2026 and you or your student got a federal Direct Loan for that program before July 1, 2026.

That window lasts up to 3 school years, or less if the program ends sooner. It ends if your student withdraws or leaves the program, and a transfer to another school (including from a 2-year to a 4-year school) does not keep it. Your school's financial aid office decides.

As of · Source: 34 CFR 685.203; Final rule, 91 FR 23768 (May 1, 2026)

Repayment is different now

If your first federal Direct Loan is a Parent PLUS loan made on or after July 1, 2026, you repay it on the Tiered Standard plan: fixed payments over 10 to 25 years, depending on how much you owe in total. There is no income-driven option, and it does not count toward Public Service Loan Forgiveness.

If you already have Parent PLUS loans, taking any new federal Direct Loan on or after July 1, 2026 moves all of your Parent PLUS loans to the Tiered Standard plan. Talk to your loan servicer first.

As of · Source: Final rule, 91 FR 23768 (May 1, 2026); 34 CFR 685.208

Next steps

Questions parents ask

Does the $20,000 limit apply to each parent?

No. The limit is per student, not per parent. All parents together can borrow up to $20,000 a year and $65,000 in total in Parent PLUS for each dependent student, for school years starting on or after July 1, 2026.

What if my student is already in college?

The limits may not apply yet. If your student was enrolled in their program on June 30, 2026, and you or your student got a federal Direct Loan for that program before July 1, 2026, the limits can be set aside for up to 3 school years, or until the program ends if that is sooner. The window ends if your student withdraws or transfers. Parent PLUS you borrow during that time still counts toward the $65,000 total afterward. Your school's financial aid office decides whether this applies.

What are the Parent PLUS interest rate and fee for 2026-27?

For loans first paid out from July 1, 2026 through June 30, 2027, the rate is 9.07%, fixed for the life of the loan. There is also an origination fee of 4.228%, taken out of each payment to the school, so the school receives a little less than you borrow. Rates for later school years are not set yet.

What if I am denied a Parent PLUS loan?

A Parent PLUS loan needs a credit check for an adverse credit history, such as serious late payments, a defaulted federal loan, or a recent bankruptcy. If you are turned down, you may still be able to borrow with an endorser (someone who agrees to repay if you do not), or by documenting extenuating circumstances, and you would need to complete PLUS counseling. If you are denied, your student may be able to borrow more in federal loans in their own name, and the financial aid office decides how much. Choosing not to borrow does not count as being denied, and neither does reaching the lifetime limit.

Can I still get an income-driven repayment plan?

Not for new Parent PLUS borrowing. If your first federal Direct Loan is a Parent PLUS loan made on or after July 1, 2026, you repay on the Tiered Standard plan, which has fixed payments and no income-driven option, and does not count toward Public Service Loan Forgiveness. If you already have Parent PLUS loans and take any new federal Direct Loan on or after July 1, 2026, all of your Parent PLUS loans move to that plan. If your Parent PLUS loans were consolidated before July 1, 2026, making at least one income-contingent payment by July 1, 2028 keeps a path to Income-Based Repayment and Public Service Loan Forgiveness. Talk to your loan servicer before you borrow.

What are my options beyond Parent PLUS?

Start with the options that cost the least: ask the financial aid office to review your aid offer, use a school payment plan and savings, and compare schools by net price, which is what families actually pay after grants. Then look at your student's own options, such as scholarships and work-study. Private loans exist too, but they usually come with fewer protections than federal loans, so compare carefully and consider them last.

Rates are for loans first paid out July 1, 2026 through June 30, 2027. Rules can change, so check studentaid.gov and your school's financial aid office.

Sources

How we calculate: the planner applies the yearly and total limits, the origination fee and the Tiered Standard repayment term from the sources above. It is an estimate, not a loan offer, and your school's financial aid office decides what you can borrow.