Until now, you could borrow whatever your child's school cost. Starting July 2026, parent borrowing is limited to $20,000 a year and $65,000 total per child.
Starting July 2026, parent borrowing gets a hard annual cap for the first time. Here's what that means.
Until now, parents could borrow up to the full cost of attendance through Parent PLUS. Starting July 2026, you're limited to $20,000 a year.
The total you can borrow for any one child tops out at $65,000. At $20,000 a year, that runs out partway through junior year.
If your child is already enrolled, you may get up to 3 years under the old rules. New students starting fall 2026 face the caps immediately.
| School | Annual COA | Federal Cap | Annual Gap |
|---|---|---|---|
| NYU | $86,400 | $20,000 | −$66,400 |
| Columbia | $84,200 | $20,000 | −$64,200 |
| USC | $82,800 | $20,000 | −$62,800 |
| Georgetown | $78,600 | $20,000 | −$58,600 |
| Boston University | $74,200 | $20,000 | −$54,200 |
| Tulane | $68,400 | $20,000 | −$48,400 |
| SMU | $62,800 | $20,000 | −$42,800 |
| U Michigan (OOS) | $58,400 | $20,000 | −$38,400 |
Source: The 2026 Graduate Education Funding Crisis: A Data Report. Full methodology →
Federal student loans, 529 withdrawals, private parent loans, and payment plans your family can use.
Read guide →DATALook up any college: annual cost, new parent cap, and how much your family would need to cover.
Calculate yours →GUIDEWhich lenders offer parent loans, what rates look like, and how repayment compares to PLUS.
Read guide →TOOLEnter your child's school, their aid package, and your savings to see the gap.
Calculate →Private parent loan options, 529 changes, and policy updates for families.
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