Big changes to federal student loan limits
Taking classes in the fall? A new law will mean lower federal loan limits for some students and parents who help pay.
Changes from the One Big Beautiful Bill Act take effect on July 1, 2026, and could impact your ability to pay most of your bill with federal loans.ÌýÌý
Legacy provisions
If you previously borrowed a Federal Direct Loan while enrolled in your degree program at ¶¶ÒõÂÃÐÐÉä Boulder, your borrowing limit shouldn’t change in July. Federal Direct Loans include subsidized, unsubsidized, Parent PLUS and Graduate PLUS loans.Ìý
New borrowers:
- Students borrowing a federal loan after July 1
- Not eligible for legacy loan provisions
Continuing borrowers:Ìý
- Previously borrowed a federal loan while enrolled in their program of study at ¶¶ÒõÂÃÐÐÉä Boulder before July 1
- Eligible for legacy loan provisionsÌý
ÌýÌýEnrollment changes
If you enroll less than full time, your federal loan limit will adjust in coordination with your credit hours. Parent PLUS loans for undergraduates, are exempt.ÌýÌý
ÌýÌýChanging majorsÌý
- Graduate & Law: changing majors after July 1 could mean losing access to your grad PLUS loan and current unsubsidized loan limits
- Undergraduates: no change to loan limits from changing majors after July 1 while enrolled at ¶¶ÒõÂÃÐÐÉä BoulderÌý
ÌýÌýGraduate students
Starting a grad program in the fall? Lower federal loan limits will take effect soon for new borrowers.
Effective July 1, unsubsidized loans capped at:
- $20,500 annually
- $100,000 lifetime borrowing limit
The grad PLUS program, which lets students borrow up to the cost of their education, will end for new borrowers on July 1, 2026.Ìý If this causes a gap in funding, review our other ways to pay at the bottom of this article for additional resources to help you pay your bill.Ìý
ÌýÌýLaw students
Starting Law School at ¶¶ÒõÂÃÐÐÉä Boulder in the fall? Most of our Law School majors are classified as professional degree programs and will have different borrowing limits for new borrowers.
Effective July 1, unsubsidized loans capped at:
- $50,000 annually
- $200,000 lifetime borrowing limit
Law students may not receive Title IV aid as an undergraduate student for the same period of enrollment. Title IV aid includes the Pell Grant, work-study and Federal Direct Loans.ÌýÌý
ÌýÌýParents of undergraduates
Parents planning to use Parent PLUS loans to help their students pay for fall classes may encounter the following loan limits for new borrowers.Ìý
Effective July 1, PLUS loans capped at:
- $20,000 annually
- $65,000 total per child
ÌýÌýLifetime loan limits
The new law caps lifetime borrowing at $257,500 for all federal student loans combined taken after July 1, 2026, excluding Parent PLUS Loans.
ÌýÌýPrivate loansmay be an option for students with a gap in funding.
ÌýÌýPayment plans help break your bill into multiple payments over the semester.
ÌýÌýWork-study is need-based financial aid where students earn money through part-time employment.
This information could change as additional information becomes available from the Dept. of Education. We'll continue to update this article as we learn more from the federal government.