New federal student loan limits and the RAP plan: what changed on July 1, 2026
Federal student loan rules changed for loans first disbursed on or after July 1, 2026. If you are borrowing for the 2026-27 or 2027-28 school year, these are the numbers that matter.
New borrowing limits
- Graduate students: up to $20,500 a year and $100,000 in total. The Grad PLUS loan is no longer available to new borrowers.
- Professional students (for example law or medicine): up to $50,000 a year and $200,000 in total.
- Parent PLUS: up to $20,000 a year per dependent student, with a $65,000 lifetime cap.
- Overall cap: $257,500 in federal student loans across everything a borrower takes out.
Students already enrolled in the same program at the same school before July 1, 2026 may qualify for an exception to the new limits.
New repayment options
New loans repay through either a tiered standard plan with fixed payments or the income-based Repayment Assistance Plan (RAP). Parent PLUS loans cannot use RAP.
Borrowers with older loans can stay on their current plans as long as they do not take out new loans or consolidate on or after July 1, 2026. The ICR and PAYE plans are being phased out by July 1, 2028.
What to do
If the new caps leave a funding gap, compare grants and scholarships first, then private student loans. Our guide to paying for school explains the order most families use.
