Department of Education Implements New Student Loan Limits Affecting Borrowers
The Department of Education has finalized a significant overhaul of the federal student loan system, set to take effect in July 2026. This reform introduces new borrowing limits and repayment structures, following provisions from President Trump's Working Families Tax Cuts Act. The changes impose tighter caps on borrowing for graduate and professional students and introduce restrictions for Parent PLUS loans. Graduate students will face a borrowing limit of $20,500 per year, with a total cap of $100,000, while professional degree students can borrow up to $50,000 annually, capped at $200,000. Parent PLUS loans will be limited to $20,000 per year per dependent, with a total cap of $65,000. The reforms aim to curb excessive borrowing and encourage institutions to reduce costs, though they have faced criticism for potentially limiting access to higher education, especially for low-income students. 
