Parent PLUS Loans: What’s Changing for 2026
- Isaiah Ellis
- Jul 5
- 2 min read
For decades, Parent PLUS loans have served as a financial bridge for families striving to afford a child’s college education. These federal loans have offered parents the ability to borrow up to the full cost of attendance, filling gaps that scholarships, grants, and student loans left behind. But if H.R. 1—informally dubbed the Big Beautiful Bill—becomes law, this longstanding safety net is about to change in significant ways.
H.R. 1, promises one of the most sweeping overhauls of federal student aid in recent history. While much attention has focused on the bill’s changes to Pell Grants and student loan repayment, parents who might rely on PLUS loans should take notice. The bill sets strict new limits on how much parents can borrow and eliminates repayment flexibility that many families have counted on.
A New Cap on Borrowing
Until now, Parent PLUS loans had no set dollar limit; parents could borrow enough to cover the full cost of attendance at a college, minus any other aid. This sometimes led to parents taking on large amounts of debt—especially as tuition rose.
H.R. 1 changes this dramatically. If signed into law, it will cap annual borrowing at $20,000 per student per year and lifetime borrowing at $65,000 per student. These limits apply to new loans disbursed on or after July 1, 2026.
"For families who once saw Parent PLUS loans as a last-resort safety valve to make up large gaps in college costs, this shift means planning ahead is more important than ever."
Repayment: No More Income-Driven Plans
Current Parent PLUS loans can sometimes qualify for income-contingent repayment, offering a way for parents to lower monthly payments based on income and family size. H.R. 1 eliminates that option for new loans issued from July 2026 forward.
Instead, parents will have to follow a fixed repayment plan usually over 10 to 30 years, depending on how much they owe. For families facing job loss, medical expenses, or other financial hardships, the loss of income-driven repayment may make it harder to stay current on loans.
What This Means for Families
On one hand, these changes aim to prevent overborrowing that could burden parents well into retirement. On the other, they may leave families especially those from modest or middle-income backgrounds scrambling for other ways to cover college costs.
It is a call to action for parents of future college students to begin financial planning early. Families will need to make the most of scholarships, grants, work-study opportunities, and savings, rather than leaning heavily on Parent PLUS loans.
How Parents Can Prepare
H.R. 1 hasn’t yet become law, but its passage seems likely. Here’s what parents can do:
Explore scholarships and grants now—especially local, institutional, and identity-based programs that often go overlooked.
Understand current loan options if your child will start college before 2026, while existing rules still apply.
Estimate future college costs and create a plan that doesn’t rely solely on loans.
Stay informed about the final regulations and guidance from the Department of Education.
Resources for Parents Here are resources that may help:
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