Parent PLUS Loan Limits: Guide to Borrowing Changes in 2026

Parents planning on taking out parent PLUS Loans should expect the terms and limits to change on July 1, 2026.

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Updated Apr 1, 2026

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Parent PLUS loans will face new restrictions, as part of an overhaul of the student loan landscape.

Parent PLUS loans remain an option for biological or adoptive parents of undergraduate students attending college for at least part time. Parent PLUS loans are provided by the U.S. Department of Education (ED), and were created by Congress over four decades ago to help families send their children to college. Historically, parents were able to borrow up to the full cost of college attendance.

New parent PLUS loan limits

Beginning July 1, 2026, there will be a $20,000 annual cap and a $65,000 lifetime cap per dependent for parent PLUS borrowers. Additionally, parents who borrow under the new PLUS plan will be unable to consolidate their loans and pay them back as a percentage of their income. The PLUS caps, in addition to other changes to federal student loans, are part of the Trump administration’s attempt to curb borrowing for college.

A 2025 report from the Postsecondary Education & Economics Research Center shows that 8% of dependent undergraduates in 2020 had parents who took out PLUS loans, and 29% of those parent borrowers took out PLUS loans more than the new capped amount.

“Borrowers often don't realize that the government has extensive power to collect what you owe if you default on federal student loan debt,” said Kyra Taylor, a staff attorney who focuses on student loans at the National Consumer Law Center. “They can garnish your wages, seize a portion of your social security check, and take your tax refund to pay off the debt. And, unlike other forms of debt, there is no statute of limitations. The debt can follow borrowers to the grave.”

Going forward, parents will need to plan accordingly and consider all their options when it comes to borrowing for their student’s education.

“I deeply empathize with the desire to do whatever it takes to send your child to the college of their choice, whatever the cost,” Taylor said. “But, unless you carefully consider whether you can bear the burden of that debt, that choice to take out a parent PLUS loan could haunt you for years and threaten your financial security for decades.”

Comparing parent PLUS and private loans

There are two main loan types available for parents to borrow in order to pay for their child’s school: federal PLUS loans and private loans. Private loans usually have a minimum credit score requirement (typically 600 or higher), whereas PLUS loans have fixed — albeit usually higher — interest rates and minimal fees.

PLUS loans are best for borrowers who can afford payments on the modified standard repayment plans. Parents who can qualify for private loans with lower interest rates or who work in public service and could qualify for Public Service Loan Forgiveness (PSLF) should consider this option.

Parent PLUS Loans	Private Loans
Through the federal government.	From banks or other private lenders.
Fixed interest rates and minimal fees.	Possibly lower or higher interest rates, depending on the borrower.
Eligible for discharge if the parent borrower or dependent student dies.	Minimum credit score required and approval is based on credit history.
Fixed amount you can borrow up to.	You can borrow up to the cost of attendance.
Option for income-driven repayment plan.	Fixed monthly payments and no possibility of loan forgiveness.

» MORE: Best student loans for parents

Next steps for pre-July 2026 parent PLUS borrowers

If you have parent PLUS loans currently and want to keep access to income-driven repayment, you should take the following steps:

Consolidate your existing PLUS loans into a Direct Consolidation Loan.
Enroll in the Income-Contingent Repayment (ICR) plan.
Make at least one payment.
Enroll in the Income-Based Repayment (IBR) plan.

If you do not move your loans to IBR before July 1, 2026, you will likely be unable to switch to an income-driven repayment plan. If you have a parent PLUS loan that has already been consolidated into a direct loan, you could already be eligible for IBR. Any PLUS loans borrowed after July 1, 2026, will operate under the new repayment model.

"It can take 4-6 weeks for a consolidation application to be fully processed, so borrowers must act fast if they want to have their consolidation loan disbursed before the deadline," said Taylor. "Borrowers that need to think seriously about this are folks who are struggling to pay their monthly bills right now, as well as folks that know that their incomes may reduce in the future due to retirement, job insecurity, or another reason."

Another thing to remember is that if you took out a parent PLUS loan prior to the loan limit change, you can continue to borrow up to the cost of attendance for three years or whenever your student finishes school. So, for example, if you borrowed the cost of attendance for your student’s freshman year in the 2024-2025 academic year, you could continue to borrow up to the cost of attendance until they graduate in spring 2028.

If you are not on an income-driven repayment plan, are comfortable with your current parent PLUS loan payments and aren’t worried about future variability to your income, you can remain as you are.

What changes will affect new parent PLUS borrowers?

With the new changes to the student loan landscape, there will be fewer repayment options for future borrowers. PLUS loans borrowed on or after July 1, 2026, will only be able to be repaid with the standard plan, and will no longer be repaid with an income-driven repayment plan or the new Repayment Assistance Plan (RAP). Taking out additional PLUS loans after that date will cause all of your repayment plans to change to the new standard plan.

"Parents should consider what taking out a new parent PLUS loan could do to any other loans they owe," Taylor said. "If they took out parent PLUS loans and consolidated them to enroll them in the IBR or ICR plan before July 1, 2026, taking out a new Parent PLUS loan would then make that the consolidation loan containing old Parent PLUS loans ineligible for any IDR plan as well."

When you borrow a PLUS loan going forward, you will automatically be enrolled in the standard repayment plan. The standard repayment plan has a tiered repayment term of 10 to 25 years depending on how much you borrow. It’s recommended that PLUS loans are only taken out after grants, scholarships and other federal loans have been maxed out. If you choose to take out a PLUS loan, be prepared for high interest rates and few repayment options.

How to apply for a parent PLUS loan

You will need to pass a credit check for a PLUS loan. If you have subpar credit, you can have someone — not your student dependent — with good credit act as an endorser. This means they will pay back the loan if you can’t. You can also provide documentation explaining your circumstance at studentaid.gov, and complete credit counseling, in an effort to borrow a PLUS loan.

According to ED, it will take about 20 minutes to complete an application for a PLUS loan. The application process must be completed in one sitting. To complete the application, you will need:

Parent's verified FSA ID.
The requested loan amount.
Your child’s college’s name.
Information about your child.
Your credit information and other details.
Your employer's information.

If biological or adoptive parents are divorced, each parent can complete an application and take out a PLUS loan for the child. However, the borrowing limit will still apply collectively to both parents.

If you are considering taking out a parent PLUS loan, consider these next steps:

Determine the full cost of your child’s attendance, which can be found on the college’s website.
Confirm all other financial aid sources have been exhausted.
Check your finances and estimate if your income will remain steady for the length of the loan repayment.
Review your credit report and remove any credit freezes.
Confirm you can save for your retirement and pay down other debts while paying off the PLUS loan.
Consider the private loans available to you.
See if you qualify or could qualify for PSLF.
Complete the Free Application for Federal Student Aid (FAFSA). You will need your FSA ID to complete the PLUS loan application.

Parents should seriously consider the benefits and consequences of a parent PLUS loan. A PLUS loan, like any other loan, can affect both your credit and debt-to-income ratio. PLUS loans generally aren’t forgiven. You’ll be on the hook for repayment for the long haul. While your child cannot have the loan transferred to them, they could refinance the loan with a private lender.

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