Federal student loans have undergone significant changes. Whether you are a current borrower or planning to take out loans in the future, here is what you need to know now that these changes are in effect.
Undergraduate lending limits
Annual lending limits for undergraduate students will remain unchanged, but soon borrowers will be subject to new lifetime caps. Those will be $57,500 for independent students and $31,000 for dependent students.
Graduate lending limits
Graduate PLUS loans will no longer be available to new borrowers after July 1. Graduate students will now fall into two categories:
- Nonprofessional graduate students may borrow up to $20,500 annually, with a $100,000 lifetime maximum for their graduate studies.
- Professional students in fields like medicine, law, dentistry and pharmacy may borrow up to $50,000 annually, with a $200,000 lifetime cap for graduate loans.
Parent PLUS loans
Parent PLUS loans will still be available, but parents will no longer be able to borrow up to the full cost of attendance. New limits will be $20,000 annually and $65,000 lifetime per student.
The bottom line
Student lending is changing, not disappearing. If you have questions about how these changes affect you, contact your school’s financial aid office for guidance specific to your situation.