Federal Parent PLUS Loan Changes

Federal Parent PLUS Loan Changes: (As of May 1, 2026)

What New Parent Borrowers Need to Know

Beginning July 1, 2026, changes to the law affect how much parents can borrow from the Parent PLUS Loan program for their children’s college education and the available repayment options for those loans. There are no changes to how much undergraduate students can borrow.

This document is written for Parent PLUS Loan borrowers and explains what’s changing, when the changes take effect, and how those changes may affect them. We encourage parents who are unsure how any of this applies to make an appointment or call the CCNY Financial Aid Office. 

Borrowing Limits

What is changing and when?

There are new loan limits for the Parent PLUS Loan program.

• $20,000 per dependent student, per year (annual limit).
• $65,000 per dependent student, in total (aggregate limit).

Importance of planning accordingly

• The new aggregate limit of $65,000 means that borrowing the annual maximum for a four-year undergraduate program will cause parents to reach the aggregate limit before the student completes their degree, leaving them without further access to the Parent PLUS Loan.

Planning annual PLUS borrowing to ensure continued access

On the Parent PLUS Loan application, parents should only select the “maximum amount” option if they wish to borrow the full $20,000 for the year. To ensure adequate Parent PLUS Loan eligibility for the duration of the student’s undergraduate program, parents should request a lesser amount on the application. For example, request $16,250 per year for total (aggregate) eligibility to be split equally for a four-year program.

What if a Parent PLUS Loan borrower needs more than the annual borrowing limit, or reaches the aggregate limit before the student graduates?

Discuss other financing options with the financial aid office, such as external scholarships, payment plans, institutional loans, or private loans.

Repayment Plan Changes Apply to All Parent Borrowers

Any federal Parent PLUS Loans borrowed on or after July 1, 2026 (including federal consolidation loans that include Parent PLUS Loans) can only be repaid under a single new, fixed repayment plan.

What is changing?

• For Parent PLUS Loans taken out on or after July 1, 2026, the only repayment plan option available will be a new tiered standard repayment plan
  • The tiered standard repayment plan offers a fixed monthly payment over 10 to 25 years, based on the outstanding balance of the loan(s).
• This applies to parent borrowers with existing Parent PLUS Loans who borrow a new loan on or after July 1, 2026, as well, because the law requires that all Parent PLUS Loans be repaid under the same repayment plan.

• Parents who currently have Parent PLUS loans in repayment and borrow a Parent PLUS Loan on or after July 1, 2026, will have all of their Parent PLUS Loans moved to the tiered standard repayment plan, potentially changing the monthly payment amount.
• Current Parent PLUS Loan borrowers may repay their loans under the following repayment plans until their loans are fully repaid, but only if they do not borrow new Parent PLUS Loans on or after July 1, 2026:
  • 10-year standard repayment plan
  • Extended repayment plan
  • Graduated repayment plan
• Parent PLUS Loan borrowers who consolidated their Parent PLUS Loans into a Direct Consolidation Loan before July 1, 2026, may repay their loans under the income-contingent repayment (ICR) plan through June 30, 2028, at which point that plan will sunset, and Parent PLUS Loan borrowers repaying under ICR will be moved to the income-based repayment (IBR) plan.

The Department of Education (ED) released the Reimagining and Improving Student Education (RISE) final regulations in the May 1, 2026, Federal Register. In the preamble to the Final Rules, ED indicates that additional subregulatory guidance will be issued to support implementation of certain provisions. All information provided here reflects NASFAA’s current understanding of how to apply the May 1 rules based on the regulatory text and preamble discussion. Because ED has indicated that further guidance is forthcoming, this interpretation may be subject to change.

PLUS Loan Request start by completing a PLUS loan form using Proverifier+

Student must start the request to get the PLUS loan Form

https://proone.proed.org/esign/proDocDocumentRequest/?formId=10407 

DOCUMENT SUBMISSION INSTRUCTIONS

1. Download and complete the required loan form.
2. Print the form and sign it using a wet (handwritten) signature in ink.
3. Scan the completed and signed document.
4. Attach the form to the Loan Request Form link above.

IMPORTANT INFORMATION

• Please use your CCNY student email address ( FirstName.LastName##@stu-mail.ccny.cuny.edu ).
• Your EMPLID can be found next to your name in CUNYfirst.
• Digital or electronic signatures will not be accepted.

Incomplete or unsigned forms will not be processed