Tip of the Month | September 2025
Changes to Federal Student Loan Borrowing Limits
Under the New Budget Bill (OBBBA)
Written By: Ryan Rink, CFP®, EA, ChFC®, CLTC®
Effective July 1st, 2026, OBBBA introduces significant changes to federal student loan borrowing limits.
Overall Lifetime Cap:
For the first time, there is a combined lifetime borrowing limit of $257,500 per person across undergraduate, graduate, and professional loans.
Graduate and Professional Loans:
– Graduate (Master’s) Programs: Annual borrowing is capped at $20,500, with a lifetime limit of $100,000.
– Professional Programs (Doctoral, Medical, etc.): Annual borrowing is capped at $50,000, with a lifetime limit of $200,000.
Parent PLUS Loans:
– Now limited to $20,000 per year, per student, with a lifetime cap of $65,000 per student.
– Previously, parents could borrow up to the full cost of attendance (minus other aid), with no set limit.