Parent PLUS Direct Loans
OBBBA introduces a $20,000 per student annual limit on Parent Plus Loans. Previously, the annual limit was determined by subtracting the total of all other aid from the cost of attendance. The act also introduces a $65,000 per student aggregate limit.
The addition of the $65,000 aggregate limit means that parents cannot borrow the full $20,000 annual limit every year for entire length of a four year program.
| Current Limits (before July 1st, 2026) | Changes Effective July 1st, 2026 | |
|---|---|---|
| Annual Limit | Determined by this formula: Cost of Attendance - Other Aid Other Aid includes grants, scholarships, and other loans |
$20,000 per student (combined from all parents) |
| Aggregate Limit | No limit | $65,000 per student |
- Legacy Provision: Students with any existing Direct Loan may continue borrowing for up to 3 years or for the remainder of their expected time to complete the program, within the published length of time to do so, whichever is less.
- New borrowers must seek alternative funding if limits are exceeded.
The $65,000 Cap Includes Loans from All Schools
Example: A parent who borrowed $45,000 in Parent PLUS loans while their child attended a prior institution has only $20,000 in remaining aggregate eligibility for that child — regardless of which school the child now attends.
The $65,000 aggregate limit does not reset as loans are repaid. Once you reach the lifetime cap for a dependent student, no additional Parent PLUS loans are available for that student.
Contact NLU Financial Aid with your complete Parent PLUS borrowing history so we can calculate your remaining eligibility accurately before your award is packaged.
Parent PLUS Is Not Subject to Part-Time Proration
The new part-time enrollment proration rule — which reduces annual loan limits for students who enroll less than full-time — applies to Direct Subsidized and Unsubsidized Loans and Grad PLUS Loans. It does NOT apply to Parent PLUS Loans.
However, the annual Parent PLUS limit is still constrained by cost of attendance minus other financial assistance. If your dependent student enrolls part-time and NLU calculates a lower cost of attendance for part-time enrollment, the amount you can borrow through Parent PLUS may be reduced as a result — even though the proration rule itself does not apply directly.
Frequently Asked Questions
No. A dependent undergraduate student whose parent has reached the $65,000 aggregate limit is not eligible for additional Unsubsidized loans beyond the standard dependent limits. The additional Unsubsidized loan eligibility that applies when a parent cannot obtain a PLUS loan — due to adverse credit, for example — does not apply when the parent has simply exhausted their PLUS borrowing limit.
Yes. All Parent PLUS loans ever borrowed for that dependent student — at any institution — count toward the $65,000 aggregate limit. The cap is per student, not per school. Contact Student Finance with your full borrowing history so we can calculate your remaining eligibility before your aid package is finalized.
If your dependent student qualifies for the interim exception, you may borrow Parent PLUS up to the student's cost of attendance minus other financial assistance — with no annual or aggregate cap — during the student's expected time to credential. Once the student's protected period ends, the new $20,000/$65,000 limits apply.
Legacy Borrowers
A legacy borrower is a parent of a current NLU student who has borrowed any Federal Direct Loan (i.e., Subsidized, Unsubsidized, or Parent PLUS) before July 1, 2026. Borrowing a loan before July 1, 2026, means the loan was disbursed before that date.
Parents are considered legacy borrowers if:
- Their student has previously borrowed a Subsidized or Unsubsidized Direct Loan at NLU, even if the parent has never borrowed from the Federal Parent PLUS Direct Loan program.
- They have borrowed from the Federal Parent PLUS Direct Loan before July 1, 2026.
Effective July 1, 2026, the One Big Beautiful Bill Act changed many of the rules for the new borrowers of the Federal Parent PLUS Direct Loan. To continue borrowing under the current rules, you must be considered a legacy borrower.
Legacy borrowers may continue using this loan program for 3 years or until the student completes their program, whichever is shorter.
Yes. There are a few ways these borrowers can lose eligibility.
Continuous Enrollment Requirement
The student of a legacy borrower for the Parent PLUS Direct Loan must be continuously enrolled. For example, legacy borrowers will lose eligibility to continue using the Parent PLUS Direct Loan under the pre-July 1, 2026 rules if their:
- Student is continuously enrolled in (and has not withdrawn from) a program of study at an institution and received a Direct Loan prior to June 30, 2026, for that program of study, they are eligible for the interim exception during their expected time to credential.
- Student begins enrollment in a term and withdraws from all classes after the add/drop period.
If attendance in the summer term is not required as part of a student's academic degree requirements, then summer is excluded from the continuous enrollment requirement, so a borrower will not lose eligibility for not taking classes in the summer.
Three Years of Eligibility
Legacy borrowers can only retain eligibility for the Parent PLUS Direct Loan for 3 academic years after July 1, 2026, or the remainder of their student's program of study, whichever is shorter.
Changing Programs
Legacy borrowers will NOT lose eligibility if their student changes majors to a different undergraduate program after July 1, 2026. However, changing majors may extend the student's time to complete their degree, exceeding the 3-year maximum allowed for legacy status. If that occurs, parents may lose access to the Federal Parent PLUS Direct Loan program under the pre-July 1, 2026, rules before the student graduates.
The student of a legacy borrower for the Parent PLUS Direct Loan must be continuously enrolled. For example, legacy borrowers will lose eligibility to continue using the Parent PLUS Direct Loan under the pre-July 1, 2026 rules if their:
- Student is continuously enrolled in (and has not withdrawn from) a program of study at an institution and received a Direct Loan prior to June 30, 2026, for that program of study, they are eligible for the interim exception during their expected time to credential.
- Student begins enrollment in a term and withdraws from all classes after the add/drop period.
If attendance in the summer term is not required as part of a student's academic degree requirements, then summer is excluded from the continuous enrollment requirement, so a borrower will not lose eligibility for not taking classes in the summer.
A “year” is an academic year, not a calendar year.
No. Legacy borrower rules require enrollment in the same degree program at the same institution. If they begin enrollment at NLU in a new degree program after July 1, 2026, you will not qualify as a legacy borrower to continue using the Parent PLUS Direct Loans under the pre-July 1, 2026 rules.
Additionally, any amount of Parent PLUS Loans you borrowed at previous institutions before arriving at NLU will count towards your $65,000 lifetime limit for loans in this program, as you will be under the new rules.
For example, if you borrowed $50,000 in Parent PLUS Loans at prior institutions, you will only have $15,000 remaining during your time at NLU ($65,000 - $50,000). If you borrowed $65,000 or more at prior institutions, then you will have no remaining eligibility while enrolled at NLU.
Undergraduate degree programs at NLU have a 4 year published program length. This means the programs are designed to be completed in no more than 4 years on a full-time basis. To calculate your remaining eligibility, JMU must use this as the maximum time allowed to receive Parent PLUS Loans under this status.
Example 1
- The student is in an undergraduate program that has a published program length of 4 years
- The student completes their first year at the end of 2025-26 and is scheduled to return for their second year in 2026-27
- According to the program length, they should be enrolled:
- 2025-26 – Year 1
- 2026-27 – Year 2
- 2027-28 – Year 3
- 2028-29 – Year 4 (graduate)
- Parents borrowed $20,000 in Parent PLUS Loan funds for the 2025-26 year
- 4 year program - 1 year of attendance = 3 years remaining under the current Parent PLUS Loan rules
Example 2
- The student is in an undergraduate program that has a published program length of 4 years
- The student completes their second year at the end of 2025-26 and is scheduled to return for their third year in 2026-27
- According to the program length, he should be enrolled:
- 2024-25 – Year 1
- 2025-26 – Year 2
- 2026-27 – Year 3
- 2027-28 – Year 4 (graduate)
- Parents borrowed $40,000 in Parent PLUS Loan funds by the end of the 2025-26 year
- 4 year program - 2 years of attendance = 2 years remaining under the current Parent PLUS Loan rules
Example 3
- The student is in an undergraduate program that has a published program length of 4 years
- The student completes their third year at the end of 2025-26 and is scheduled to return for their fourth year in 2026-27
- According to the program length, te should be enrolled:
- 2023-24 – Year 1
- 2024-25 – Year 2
- 2025-26 – Year 3
- 2026-27 – Year 4 (graduate)
- Parents borrowed $60,000 in Parent PLUS Loan funds by the end of the 2025-26 year
- 4 year program - 3 years of attendance = 1 year remaining under the current Parent PLUS Loan rules
Example 4
- The student is in an undergraduate program that has a published program length of 4 years
- The student completes their fourth year at the end of 2025-26, but needs to return for a fifth year in 2026-27 to complete their program
- According to the program length, they should be enrolled:
- 2022-23 – Year 1
- 2023-24 – Year 2
- 2024-25 – Year 3
- 2025-26 – Year 4 (should have graduated, but needs to return for one more year)
- 2026-27 – Year 5 (graduate)
- Parents borrowed $80,000 in Parent PLUS Loan funds by the end of the 2025-26 year
- 4 year program - 4 years of attendance = 0 years remaining under the current Parent PLUS Loan rules
- This student will return in 2026-27 with no eligibility for additional Parent PLUS Loans because of already borrowed more than the new $65,000 limit
- If the student had only borrowed $40,000 prior to 2026-27, then the student would return with $25,000 remaining ($65,000 - $40,000) and be capped at borrowing no more than $20,000 in any given academic year
New Borrowers
Effective July 1, 2026, the One Big Beautiful Bill Act changed the annual and aggregate limits for the Federal Parent PLUS Direct Loan program. Even though this is a parent loan and the student has no legal responsibility to repay it, the annual and aggregate limits are based on a student's eligibility, not the parent's.
- Students may receive no more than $20,000 in an award year, which is the summer, fall, and spring terms at NLU (in that order).
- Students may receive no more than $65,000 in total (aggregate) during the time they are pursuing their undergraduate degree.
No. You do not meet the definition of a “legacy borrower.” Refer to the Legacy Borrower FAQs for more information about those requirements.
No. Congress set the limit based on the student, not the parent borrower. A student can have no more than $20,000 per year in Federal Parent PLUS Direct Loan.
