Federal Student Loan Changes: What Students and Families Need to Know
If you’ve been following the news, you’ve probably seen headlines about upcoming changes to federal student loans. Beginning with loans first disbursed on or after July 1, 2026, several federal borrowing and repayment rules are changing.
While these updates won’t affect every borrower, they could impact how much some students and parents can borrow to help pay for college. Understanding your options now can help you prepare and avoid unexpected funding gaps.
What’s Changing?
Parent PLUS Loans Will Have New Borrowing Limits
Parent PLUS Loans have traditionally allowed parents to borrow up to the remaining cost of attendance after scholarships, grants, and other financial aid were applied.
Beginning July 1, 2026, new limits will apply:
- Up to $20,000 per academic year
- $65,000 lifetime limit per student
For some families, these limits may not fully cover the remaining cost of college, making it even more important to explore all available funding options.
Graduate Student Borrowing Is Changing
Graduate students will also see significant changes.
Beginning July 1, 2026:
- Grad PLUS Loans will no longer be available to new borrowers.
- Graduate students may instead qualify for Direct Unsubsidized Loans, which include annual and lifetime borrowing limits.
- Students enrolled in certain professional degree programs, such as law or medicine, may qualify for higher federal borrowing limits.
Depending on your program and school costs, you may need additional financing beyond available federal aid.
Federal Repayment Options Are Being Simplified
The federal government is also restructuring repayment options for new borrowers.
Over the next several years:
- Several existing income-driven repayment plans will be phased out for new borrowers.
- New borrowers will generally have fewer repayment plan options.
- Repayment programs will be designed to provide a more straightforward borrowing experience.
Borrowers with existing federal loans should review their current repayment options before any future changes take effect.
Deferment and Forbearance Rules Are Also Changing
Beginning in 2027, some deferment and forbearance options available to new federal student loan borrowers will become more limited.
If you’re planning to borrow for college, understanding these changes before you need them can help you make informed financial decisions.
What This Means for Students and Families
The biggest takeaway is simple: Federal student loans may not cover as much of your education as they have in the past.
If scholarships, grants, savings, and federal loans don’t cover your total cost of attendance, you may need to consider additional financing to bridge the gap.
That’s why it’s more important than ever to create a funding plan before the school year begins.
How COPFCU Can Help
At COPFCU, we’re committed to helping members invest in their future with confidence.
Through our partnership with Student Choice®, we offer private education loans designed to help eligible students and families pay for qualified education expenses when federal financial aid isn’t enough.
Benefits include:
- Competitive interest rates
- One application for your entire degree through a flexible line of credit*
- No origination fees
- Multiple repayment options
- Local service and support from a financial institution you know and trust
Whether you’re attending college for the first time, returning to school, or helping your child pay for their education, we’re here to help you understand your options.
Planning Ahead Can Make All the Difference
College is one of the biggest investments you’ll ever make. Taking time to understand how financial aid works, and how recent federal changes may affect your borrowing options, can help you make smarter decisions for your future.
If you have questions about paying for college or want to learn more about private student loan options, COPFCU is here to help every step of the way.