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Updated August 31, 2026

The 2026 federal loan changes—and the gaps they may create.

New limits took effect July 1, 2026. The rules can be individual, and transition exceptions may apply.

Limits for affected new borrowers

Graduate student$20,500

annual Direct Unsubsidized limit

$100,000 aggregate
Professional student$50,000

annual federal limit

$200,000 aggregate
Parent PLUS$20,000

annual, per dependent student

$65,000 aggregate

Grad PLUS was eliminated for new graduate and professional borrowers subject to the new rules. Undergraduate Direct Loan limits did not change. Certain health-profession programs and borrowers eligible for the interim exception can be treated differently.

The interim exception matters

Federal Student Aid guidance describes a legacy or interim-exception path for a student who was enrolled in the program by June 30, 2026 and received a Direct Loan for that program before July 1, 2026. The exception applies only for the student’s expected time to credential, subject to the federal rules.

What to do next

  1. Complete or update the FAFSA.
  2. Ask the financial-aid office which rules and exceptions apply.
  3. Confirm the school-certified cost of attendance and remaining gap.
  4. Model likely total borrowing through program completion.
  5. Compare private options only after the federal protections are understood.

Primary source

Federal Student Aid — Frequently Asked Questions: Loan Limits, May 20, 2026