Undergraduate students
Your limit depends on your year in school and whether you are a dependent or independent student. Your FAFSA answers decide which one you are.
| Year in school | Dependent student | Independent student | How much of it can be subsidized |
|---|---|---|---|
| 1st year | $5,500 | $9,500 | $3,500 |
| 2nd year | $6,500 | $10,500 | $4,500 |
| 3rd year and up | $7,500 | $12,500 | $5,500 |
| Total limit | $31,000 | $57,500 | $23,000 |
These are full-time limits. From 2026–27, if you study less than full-time, your yearly limit is lower. Your school can also set lower limits for some programs.
Subsidized means the government pays the interest while you are in school at least half-time. You must show financial need to get it. The government also pays the interest during your grace period. Unsubsidized loans build interest from day one.
Graduate and professional students
| Student type | Yearly limit | Total limit (grad school) |
|---|---|---|
| Graduate (master’s, most doctoral) | $20,500 | $100,000 |
| Professional (programs on the federal list) | $50,000 | $200,000 |
“Professional” is being decided in court. After a June 2026 court order, the Department of Education’s interim list has 29 program types. It includes medicine, law, dentistry and pharmacy, and for now also physician assistant, physical therapy, occupational therapy and many nursing programs (such as MSN and DNP). MBA programs are not on the list. The list may change. Ask your school how your program is classified.
Before July 1, 2026, grad students could add Grad PLUS loans up to the full cost of school. That option is gone for new borrowers. There is one exception. If you got a federal Direct Loan for your program before July 1, 2026, you may keep the old rules while you stay in the same program at the same school. This lasts up to three academic years or until you finish, whichever comes first. Ask your school’s financial aid office.
Parent PLUS loans
- $20,000 a year per student (all parents combined)
- $65,000 in total per student
- Rate for 2026–27: 9.07% fixed, plus a 4.228% fee
- Parent PLUS loans made on or after July 1, 2026 can use only the standard repayment plan. They cannot use RAP. Most schools and borrower groups say these payments will not count toward Public Service Loan Forgiveness.
- Parents with older Parent PLUS loans: ask your servicer how a new Parent PLUS loan affects your old ones before you borrow.
- A similar exception to the new caps applies if a parent already borrowed for the same student before July 1, 2026. Ask the school.
The lifetime cap
There is now a lifetime cap of $257,500 on all federal student loans. Parent PLUS loans do not count toward it.
What this means for you
- Undergrads: the dollar limits did not change, unless you study part-time. But federal loans rarely cover the full cost of a four-year school.
- Grad students: many programs cost more than $20,500 a year. Plan how to cover the gap before you enroll.
- Parents: $20,000 a year may not cover a private college. Compare a Parent PLUS loan with private parent loans.
To cover a gap, look first at scholarships, grants, employer tuition help and cheaper schools. Private student loans come last.
Repayment for new loans
Loans first paid out on or after July 1, 2026 have two repayment choices:
- Standard plan: fixed payments over 10 to 25 years, based on how much you owe.
- Repayment Assistance Plan (RAP): payments of 1% to 10% of your income, at least $10 a month. Payments drop by $50 a month for each dependent. Any balance left is forgiven after 30 years of payments.
Read more in our student loan guide.
Sources
- Congressional Research Service: Direct Loan Program Student Loans: Terms and Conditions
- States Newsroom: What’s a professional graduate degree? (court order and interim list, July 2026)
- Congressional Research Service: The Repayment Assistance Plan (RAP)
- Federal Student Aid: One Big Beautiful Bill Act updates
- Federal Student Aid: Loan fees for loans first disbursed Oct 1, 2026 – Sept 30, 2027
- Federal Student Aid: 2026–27 interest rates
Last checked: November 6, 2026. Always confirm with studentaid.gov or your school.
