Federal Student Loan Limits for 2026-27: Annual, Aggregate and Lifetime
For 2026-27, an undergraduate can borrow $5,500 to $12,500 a year in Direct Loans, depending on year in school and dependency status, and the 2025 reconciliation act (Pub. L. 119-21) did not change those undergraduate figures. From July 1, 2026, graduate students can borrow up to $20,500 a year ($100,000 in total) and professional students up to $50,000 a year ($200,000 in total). Grad PLUS is not available for periods of instruction beginning on or after July 1, 2026, unless you qualify for the interim exception. Parents can borrow up to $20,000 a year and $65,000 per dependent student, and a new $257,500 lifetime maximum applies to most students. Use the calculator below to see your own limit.
Maintained by Archie Chang · Rules checked against the statute, regulations and FSA guidance on October 28, 2026 · Methodology & sources
Your situation
Your estimated limits for 2026-27
- Most you can borrow this year in Direct Subsidized and Unsubsidized loans
- $5,500
- Maximum subsidized (financial need; undergraduates only)
- $3,500
- Maximum unsubsidized if you take the full subsidized amount
- $2,000
- Remaining under your aggregate limit (of $31,000)
- $31,000
- Lifetime maximum remaining (of $257,500)
- $257,500
- Parent PLUS you can still borrow this year
- $20,000
- Grad PLUS available
- Not applicable
Limited by the annual limit.
$20,000 left of the $20,000 annual limit, $65,000 left of the $65,000 total.
- Cost of attendance minus your other financial aid also limits the amount. No Direct Loan may exceed it, and a subsidized loan is also limited by your expected family contribution.
- Your school may set a lower limit for your program of study for the academic year, if it applies the limit consistently to all students in that program.
- The calculator does not model programs shorter than an academic year (34 CFR 685.203(a)(1)(ii)-(iii)) or students who already hold a degree required for admission to a non-graduate program (34 CFR 685.203(a)(4)).
Undergraduate loan limits
The undergraduate Direct Loan limits are in 34 CFR 685.203. Pub. L. 119-21, section 81001, adds new paragraphs for graduate, professional and parent borrowers to HEA section 455(a) and does not change the undergraduate figures, so they are unchanged for 2026-27. The subsidized amount by year of study:
“In the case of an undergraduate student who has not successfully completed the first year of a program of undergraduate education, the total amount the student may borrow for any academic year of study under the Direct Subsidized Loan Program may not exceed the following: (i) $3,500 for a program of study of at least a full academic year in length.”
“(i) $4,500 for a program of study of at least a full academic year in length.”
“(i) $5,500 for a program of study of at least an academic year in length.”
A dependent undergraduate can add unsubsidized loans on top of the subsidized amounts:
“In the case of a dependent undergraduate student, except as provided in paragraph (c)(3) of this section, the total amount a student may borrow for any academic year of study under the Direct Unsubsidized Loan Program is the same as the amount determined under paragraph (a) of this section, less any amount received under the Direct Subsidized Loan Program, plus— (i) $2,000 for a program of study of at least a full academic year in length.”
An independent undergraduate, and a dependent undergraduate whose parent cannot borrow a PLUS loan, can borrow more unsubsidized:
“In the case of a student who has not successfully completed the first year of a program of undergraduate education— (A) $6,000 for a program of study of at least a full academic year in length.”
“In the case of a student who has successfully completed the second year of a program of undergraduate education but has not completed the remainder of the program of study— (A) $7,000 for a program of study of at least a full academic year in length.”
| Year in school | Subsidized (maximum, within the total) | Total, dependent student | Total, independent student or dependent whose parent cannot get PLUS |
|---|---|---|---|
| First year | $3,500 | $5,500 ($3,500 + $2,000) | $9,500 ($3,500 + $6,000) |
| Second year | $4,500 | $6,500 ($4,500 + $2,000) | $10,500 ($4,500 + $6,000) |
| Third year and beyond | $5,500 | $7,500 ($5,500 + $2,000) | $12,500 ($5,500 + $7,000) |
| Aggregate, all years | $23,000 | $31,000 | $57,500 |
The aggregate limits come from 34 CFR 685.203(d) and (e):
“$23,000 in the case of any student who has not successfully completed a program of study at the undergraduate level.”
“For a dependent undergraduate student, $31,000 minus any Direct Subsidized Loan and Subsidized Federal Stafford Loan amounts, unless the student qualifies under paragraph (c) of this section for additional eligibility or qualified for that additional eligibility under the Federal SLS Program.”
“For an independent undergraduate or a dependent undergraduate who qualifies for additional eligibility under paragraph (c) of this section or qualified for this additional eligibility under the Federal SLS Program, $57,500 minus any Direct Subsidized Loan and Subsidized Federal Stafford Loan amounts.”
When a parent is denied PLUS. A dependent student gets the higher independent amounts only if the school decides the parent likely cannot borrow because of exceptional circumstances. The regulation says:
“In order for a dependent undergraduate student to receive this additional loan amount, the financial aid administrator must determine that the student's parent likely will be precluded by exceptional circumstances from borrowing under the Direct PLUS Loan Program and the student's family is otherwise unable to provide the student's expected family contribution.”
“A parent's refusal to borrow a Direct PLUS Loan does not constitute “exceptional circumstances.””
The Department adds, for parents who have used up their Parent PLUS aggregate:
“A dependent student whose parent borrower(s) has reached the Parent PLUS aggregate limit will not be eligible to receive additional unsubsidized loans beyond the dependent annual limit.”
“Dependent students will still be eligible to receive additional unsubsidized loan amounts when a Direct PLUS Loan for parent borrowers is denied due to adverse credit.”
The calculator does not model programs shorter than an academic year (34 CFR 685.203(a)(1)(ii)-(iii)) or students who already hold an associate or baccalaureate degree required for admission to their program and are not graduate or professional students (34 CFR 685.203(a)(4)); those limits differ.
Undergraduate loans still count toward the lifetime maximum below. For how repayment and interest work on these loans, see the student loan calculator.
Graduate and professional loan limits
For loans from July 1, 2026, graduate and professional students can borrow only Direct Unsubsidized loans. The statute ended subsidized loans for them years ago:
“for any period of instruction beginning on or after July 1, 2012, a graduate or professional student shall not be eligible to receive a Federal Direct Stafford loan under this part;”
The new annual limits are in HEA 455(a)(4)(A):
“a graduate student, who is not a professional student, may borrow in any academic year or its equivalent shall be $20,500;”
“a professional student may borrow in any academic year or its equivalent shall be $50,000.”
And the aggregate limits, in addition to the amount borrowed for undergraduate education, are:
“who is not (and has not been) a professional student, may borrow for programs of study described in subparagraph (C)(i) shall be $100,000;”
“who is not (and has not been) a graduate student, may borrow for programs of study described in subparagraph (C)(ii) shall be $200,000;”
| Limit | Graduate student (not professional) | Professional student |
|---|---|---|
| Annual | $20,500 | $50,000 |
| Aggregate, graduate or professional study | $100,000 | $200,000 |
| If you are or were the other type | $200,000 minus what you borrowed for professional programs | $200,000 minus what you borrowed for graduate programs |
Undergraduate loans are not part of the graduate and professional aggregates:
“Undergraduate subsidized and unsubsidized loans will not be included in the calculation of the new graduate or professional aggregate limits.”
Who is a professional student
The statute defines the two groups this way:
“a student enrolled in a program of study that awards a graduate credential (other than a professional degree) upon completion of the program.”
“a student enrolled in a program of study that awards a professional degree, as defined under section 668.2 of title 34, Code of Federal Regulations (as in effect on the date of enactment of this paragraph), upon completion of the program.”
The Department’s regulation adds that a student in a program that awards both a graduate and a professional degree is a professional student only when most of the program is professional:
“For the purposes of this section, if a student is enrolled in a program that awards both a graduate degree and professional degree, the student shall be considered a professional student if more than 50 percent of the credit hours in that program count toward the professional degree.”
Court stay. Which degrees count as professional is being litigated. The Department says:
“On June 24, 2026, the U.S. District Court for the District of Columbia, in consolidated cases Nos. 26-1780, 26-1941, preliminarily stayed part of the U.S. Department of Education’s (the Department’s) professional degree definition contained in the Reimagining and Improving Student Education (RISE) Final Rule published in the Federal Register on May 1, 2026.”
Status. As of October 28, 2026, the latest FSA guidance found is GENERAL-26-42 (updated July 10, 2026); the case is pending.
While the stay lasts, the Department says how it treats programs:
“Such programs must award the degree in parentheses to qualify for this designation.”
The interim list in GENERAL-26-42, with each program’s CIP code and the degree it must award:
- 01.8001 Veterinary Medicine (D.V.M.)
- 22.0101 Law (L.L.B.; J.D.)
- 39.0602 Divinity/Ministry (M.Div.)
- 39.0605 Rabbinical Studies (M.H.L.)
- 42.2801 Clinical Psychology (Ph.D.; Psy.D.)
- 42.2803 Counseling Psychology (Psy.D.)
- 42.2805 School Psychology (Psy.D.)
- 42.2807 Clinical Child Psychology (Psy.D.)
- 42.2810 Health/Medical Psychology (Psy.D.)
- 42.2811 Family Psychology (Psy.D.)
- 42.2812 Forensic Psychology (Psy.D.)
- 42.2899 Clinical, Counseling and Applied Psychology, Other (Psy.D.)
- 51.0101 Chiropractic (D.C.; D.C.M.)
- 51.0202 Audiology/Audiologist (AuD)
- 51.0203 Speech-Language Pathology/Pathologist (SLP)
- 51.0401 Dentistry (D.D.S.; D.M.D.)
- 51.0809 Anesthesiologist Assistant (CAA)
- 51.0912 Physician Associate/Assistant (MSPA; PA)
- 51.0913 Athletic Training/Trainer (MSAT; MAT)
- 51.1201 Medicine (M.D.)
- 51.1202 Osteopathic Medicine (D.O.)
- 51.1203 Podiatry (D.P.M.; D.P.; Pod.D.)
- 51.1701 Optometry (O.D.)
- 51.2001 Pharmacy (Pharm.D.)
- 51.2306 Occupational Therapy/Therapist (OT; MSOT; OTD)
- 51.2308 Physical Therapy/Therapist (PT; DPT)
- 51.3801 Registered Nursing/Registered Nurse (MSN)*
- 51.3804 Nurse Anesthetist (DNAP)
- 51.3818 Nursing Practice (DNP)*
The asterisk in the announcement means:
“Includes any program within the same four-digit CIP code, as assigned by the institution or determined by the Secretary, provided it awards the same credential.”
The announcement also lists programs it does not treat as professional during the stay, for example theology and theological studies (39.0601). It says:
“These interim administrative designations are provided solely to facilitate implementation of the Court’s order and may change as litigation in the case proceeds.”
Check with your school’s financial aid office which limit applies to your program, because the answer can change if the case does.
The $257,500 lifetime maximum
HEA 455(a)(6) sets one cap across all of a student’s federal loans:
“the maximum aggregate amount of loans made, insured, or guaranteed under this title that a student may borrow (other than a Federal Direct PLUS loan, or loan under section 428B, made to the student as a parent borrower on behalf of a dependent student) shall be $257,500, without regard to any amounts repaid, forgiven, canceled, or otherwise discharged on any such loan.”
The Department explains what it counts:
“This limit includes loans received as an undergraduate, graduate, or professional student and includes both Direct Loans and Federal Family Education Loan (FFEL) Program loans.”
“The limit does not include PLUS loans for parent borrowers, consolidation loans (underlying loans are included), or Health Education Assistance Loan (HEAL) Program/health profession program loans.”
“PLUS loans for graduate or professional students (both Direct and FFEL) will be included in the lifetime maximum aggregate loan limit.”
Only federal loans count. The statute’s phrase is loans “made, insured, or guaranteed under this title”, so private loans do not count toward the $257,500.
It also does not give the room back when you repay:
“Once a borrower reaches the $257,500 lifetime maximum aggregate loan limit, the borrower will no longer be eligible to receive additional Title IV loans, even if the borrower’s loans have been repaid, forgiven, or discharged.”
So Parent PLUS borrowed for a child does not count toward your own $257,500, but your own undergraduate, graduate and professional loans, including Grad PLUS, do. The lifetime cap does not apply to a borrower in the interim exception:
“The limitation for lifetime maximum aggregate loan limits described in paragraph (j)(2) of this section shall not be applicable to student borrowers during the period of the student's expected time to credential, if— (i) The student is enrolled in a program of study at an institution as of June 30, 2026; and (ii) A Direct Loan was made for such program of study prior to July 1, 2026.”
Parent PLUS loan limits
Before July 1, 2026 a Parent PLUS loan could cover cost of attendance minus other aid. HEA 455(a)(5) now sets limits per dependent student:
“for each dependent student, the total maximum annual amount of Federal Direct PLUS loans that may be borrowed on behalf of that dependent student by all parents of that dependent student shall be $20,000.”
“the total maximum aggregate amount of Federal Direct PLUS loans that may be borrowed on behalf of that dependent student by all parents of that dependent student shall be $65,000, without regard to any amounts repaid, forgiven, canceled, or otherwise discharged on any such loan.”
The Department confirms the limits are per student, not per parent:
“Beginning with the 2026–27 award year, the Parent PLUS aggregate loan limit will be $65,000 and apply per dependent student, not per parent borrower.”
- The limit is shared by all parents of that dependent student, so two parents borrowing for one child share $20,000 a year.
- Two children means two separate $65,000 limits.
- Amounts repaid, forgiven, canceled or discharged still count toward the $65,000.
- Parent PLUS is not reduced for a student’s part-time enrollment, and it is not part of the student’s lifetime maximum.
Parents of a student in the interim exception are not held to these two limits during the student’s expected time to credential. The Department’s slides say:
“Same applies if a parent borrowed on the student’s behalf.”
The SAI calculator shows how the Student Aid Index feeds cost of attendance and aid, and the student loan calculator shows what a PLUS balance costs to repay.
Grad PLUS is ending: who keeps access
The statute closes Grad PLUS to graduate and professional students for periods of instruction beginning on or after July 1, 2026:
“Subject to paragraph (8) and notwithstanding any provision of this part or part B, for any period of instruction beginning on or after July 1, 2026, a graduate or professional student shall not be eligible to receive a Federal Direct PLUS Loan under this part.”
The regulation repeats it:
“Beginning on July 1, 2026, a graduate student or professional student may not borrow a Direct PLUS Loan.”
Students already in a program. Paragraph (8) of HEA 455(a) is the “interim exception” the sentence above refers to. It switches off the new limits and the Grad PLUS ban for a student who meets two conditions on June 30, 2026:
“Paragraphs (3)(C), (4), (5), and (6) shall not apply, and paragraph (3)(A)(ii) shall apply as such paragraph was in effect for periods of instruction ending before June 30, 2026, during the expected time to credential described in subparagraph (B), with respect to an individual who, as of June 30, 2026-- (i) is enrolled in a program of study at an institution of higher education; and (ii) has received a loan (or on whose behalf a loan was made) under this part for such program of study.”
The regulation applies it to Grad PLUS this way:
“The limitation for making new Federal Direct PLUS Loan awards described in paragraph (b)(2)(i) of this section shall not be applicable to student borrowers during the period of the student's expected time to credential, if— (A) the student is enrolled in a program of study at an institution as of June 30, 2026; and (B) a Direct Loan was made for such program of study prior to July 1, 2026.”
How long it lasts:
“the expected time to credential of an individual shall be equal to the lesser of-- (i) three academic years; or (ii) the period determined by calculating the difference between-- (I) the program length for the program of study in which the individual is enrolled; and (II) the period of such program of study that such individual has completed as of the date of the determination under this subparagraph.”
In plain terms: you get at most three more academic years, or the time left in your program if that is shorter. A program with 2 years left gives you 2 years. A program with 5 years left still gives you 3. The Department’s slides and the regulations add conditions:
“Both enrollment and institutional eligibility must be maintained to qualify.”
“Once grandfathering is broken, student or parent is subject to new loan limits.”
“If the student withdraws in accordance with § 668.22 or otherwise ceases to be enrolled in the program of study at any point after receiving the exception under paragraph (j)(3) of this section, the limitations under paragraph (j)(2) of this section shall apply.”
“For the purposes of this paragraph (g), a student who changes majors within the same degree or certificate shall be considered to be enrolled in the same program of study.”
What the exception does. During the exception the pre-July 2026 rules apply instead of the new ones. For graduate and professional students that means the old aggregate limit, which the Department describes this way:
“For a graduate or professional student for periods of enrollment beginning before July 1, 2026, $138,500, including any loans for undergraduate study, minus any Direct Subsidized Loan, Subsidized Federal Stafford Loan, and Federal SLS Program loan amounts.”
The Department’s NSLDS announcement states it as $138,500, or $224,000 for borrowers in eligible health profession programs, and says the new limits apply when the exception ends:
“After the exception period ends or the borrower is no longer eligible for the exception, the revised limits will apply.”
The old annual unsubsidized limit for graduate and professional students was $8,500 plus an additional $12,000, or $20,500, from these two paragraphs of 34 CFR 685.203:
“In the case of a graduate or professional student for a period of enrollment beginning on or after July 1, 2012, and ending on or before June 30, 2026, the total amount the student may borrow for any academic year of study under the Direct Unsubsidized Loan Program may not exceed $8,500.”
“In the case of a graduate or professional student for a period of enrollment through June 30, 2026, $12,000.”
The calculator uses $20,500 and $138,500 for a grandfathered graduate or professional student. Some health profession programs had higher annual limits before July 2026. This page does not list them, so check with your school.
Subsidized vs unsubsidized loans
| Direct Subsidized | Direct Unsubsidized | |
|---|---|---|
| Who can get it | Undergraduates with financial need. Not available to graduate or professional students for periods beginning on or after July 1, 2012. | Undergraduate, graduate and professional students. No financial need requirement. |
| Interest while in school (at least half time) | Not obligated to pay it | Responsible for it |
| Interest during the grace period | Not obligated to pay it, with an exception for loans first disbursed from July 1, 2012 to before July 1, 2014 | Responsible for it |
| Grace period | Six months after you stop being enrolled at least half time | Six months after you stop being enrolled at least half time |
| Annual limit, first-year dependent | $3,500 | Up to $2,000 on top of the subsidized amount, or $5,500 in total |
Eligibility for the subsidized loan is based on need:
“A Direct Subsidized Loan borrower must demonstrate financial need in accordance with title IV, part F of the Act.”
Interest in school:
“A borrower is not obligated to pay interest on a Direct Subsidized Loan during periods when the borrower is enrolled at an eligible school on at least a half-time basis unless the borrower is required to make payments on the loan during those periods under paragraph (b)(1) of this section.”
“A borrower is responsible for the interest that accrues on a Direct Unsubsidized Loan during in-school and grace periods.”
The grace period and interest after school:
“When a borrower ceases to be enrolled at an eligible school on at least a half-time basis, a six-month grace period begins, unless the grace period has been previously exhausted.”
“Except as provided in paragraph (b)(3)(iii) of this section, a borrower is not obligated to pay interest on a Direct Subsidized Loan during grace periods.”
When you qualify for both, you are not obligated to pay the interest on the subsidized loan during the periods above; on the unsubsidized loan you are. The calculator shows both amounts. This page does not list 2026-27 interest rates.
What changed on July 1, 2026
| Item | Before July 1, 2026 | From July 1, 2026 |
|---|---|---|
| Undergraduate annual and aggregate | $3,500 / $4,500 / $5,500 subsidized by year; $31,000 and $57,500 aggregates | Unchanged |
| Graduate and professional annual (unsubsidized) | $8,500 plus $12,000 additional, $20,500 (higher for some health professions) | Graduate $20,500; professional $50,000 |
| Graduate and professional aggregate | $138,500, including undergraduate loans ($224,000 for eligible health profession programs per FSA) | Graduate $100,000; professional $200,000; undergraduate loans not included |
| Grad PLUS | Up to cost of attendance minus other aid | Not available for periods of instruction beginning on or after July 1, 2026, unless you qualify for the interim exception |
| Parent PLUS annual, per dependent student | Cost of attendance minus other aid | $20,000 |
| Parent PLUS aggregate, per dependent student | Cost of attendance minus other aid for the entire period of enrollment | $65,000 |
| Lifetime maximum | None (the lifetime limit is new) | $257,500, not counting Parent PLUS |
| Less than full-time enrollment | Not part of the limits | Annual amount reduced in direct proportion, except for non-term programs (34 CFR 685.203(m)(1)); no Direct Subsidized or Unsubsidized loan below half time |
| School-set limits | Not part of the limits | Allowed by program, applied to all students in it |
| Currently enrolled students | Not applicable | Interim exception for up to three academic years |
The Department confirms that most of this took effect on the date even with the court order on the professional degree definition:
“The vast majority of the RISE Final Rule is unaffected by the Court order and will take effect on July 1, 2026, including the elimination of the Grad PLUS program, the establishment of new annual and aggregate loan limits for graduate and professional students, and the creation of two new repayment plans: the Repayment Assistance Plan and the Tiered Standard Repayment Plan.”
Less than full-time enrollment
The statute says:
“Notwithstanding any provision of this part or part B, in any case in which a student is enrolled in a program of study of an institution of higher education on less than a full-time basis during any academic year, the amount of a loan that student may borrow for an academic year or its equivalent shall be reduced in direct proportion to the degree to which that student is not so enrolled on a full-time basis, rounded to the nearest whole percentage point, as provided in a schedule of reductions published by the Secretary computed for purposes of this subparagraph.”
The Department’s slides say which loans it covers:
“Direct subsidized (sub), direct unsubsidized (unsub), and grad PLUS loans are reduced.”
“Institutions must reduce a student’s loan amounts in direct proportion to the amount the student is not enrolled full-time (except for non-term programs).”
Direct Subsidized and Unsubsidized loans also need at least half-time enrollment, so below half time the amount is $0. The regulation says:
“The student is enrolled, or accepted for enrollment, on at least a half-time basis in a school that participates in the Direct Loan Program.”
“Parent PLUS loans are not reduced.”
Cost of attendance and school limits
Your loan can never exceed what you need to attend. The regulation says:
“In no case may a Direct Subsidized, Direct Unsubsidized, or Direct PLUS Loan amount exceed the student's estimated cost of attendance for the period of enrollment for which the loan is intended, less— (i) The student's other financial assistance for that period; and (ii) In the case of a Direct Subsidized Loan, the borrower's expected family contribution for that period.”
A school can also lower the limit for a program:
“Notwithstanding the annual loan limits established under this section and, for undergraduate students, under this part and part B, beginning on July 1, 2026, an institution of higher education (at the discretion of a financial aid administrator at the institution) may limit the total amount of loans made under this part for a program of study for an academic year that a student may borrow, and that a parent may borrow on behalf of such student, as long as any such limit is applied consistently to all students enrolled in such program of study.”
After a federal loan, repayment is the next question. The new Repayment Assistance Plan is covered in the Repayment Assistance Plan calculator.
Federal student loan limit questions
What are the federal student loan limits for 2026-27?
Undergraduates can borrow $5,500 to $7,500 a year if they are dependent students ($3,500 to $5,500 of it subsidized) and $9,500 to $12,500 a year if they are independent, with aggregate limits of $31,000 (dependent) and $57,500 (independent). Graduate students can borrow up to $20,500 a year and $100,000 in total, and professional students up to $50,000 a year and $200,000 in total. A new $257,500 lifetime maximum applies to most students, and Parent PLUS is capped at $20,000 a year and $65,000 per dependent student.
Did the 2025 law change undergraduate loan limits?
No. Pub. L. 119-21, section 81001, adds graduate, professional, Parent PLUS, lifetime and other rules to HEA section 455(a). It does not change the undergraduate annual and aggregate figures, which are still $3,500, $4,500 and $5,500 subsidized by year, plus $2,000 unsubsidized for dependent students and $6,000 to $7,000 for independent students. The lifetime maximum and the less-than-full-time reduction do apply to undergraduates.
Is Grad PLUS gone, and who can still get it?
Grad PLUS is not available for periods of instruction beginning on or after July 1, 2026, unless you qualify for the interim exception. A graduate or professional student who was enrolled in a program of study on June 30, 2026 and already had a Direct Loan made for that program keeps the old rules during the expected time to credential, which is the lesser of three academic years and the time left in the program. The exception ends if the student withdraws or stops being enrolled in the program. A change of major within the same degree or certificate counts as the same program.
How much can parents borrow with a Parent PLUS loan now?
For loans in 2026-27 and later, all parents together can borrow up to $20,000 a year and $65,000 in total for each dependent student. Amounts repaid, forgiven or discharged still count toward the $65,000. Parents of a student who was enrolled on June 30, 2026 and had a Direct Loan made for the program (to the student or a parent) are not subject to those two limits during the student’s expected time to credential.
Does Parent PLUS count toward the $257,500 lifetime limit?
No. The statute excludes a Federal Direct PLUS loan made to a student as a parent borrower on behalf of a dependent student. The lifetime maximum counts loans taken as an undergraduate, graduate or professional student, including Grad PLUS, and it counts amounts later repaid, forgiven or discharged. Consolidation loans count through their underlying loans.
What is the difference between subsidized and unsubsidized loans?
A Direct Subsidized Loan requires financial need and is available only to undergraduates, because graduate and professional students lost subsidized loans for periods beginning on or after July 1, 2012. You are not obligated to pay interest on a subsidized loan while you are enrolled at least half time or during the six-month grace period. On an unsubsidized loan you are responsible for the interest that accrues during in-school and grace periods.
Does part-time enrollment lower my loan limit?
Yes, for Direct Subsidized, Unsubsidized and Grad PLUS loans. The annual amount is reduced in direct proportion to how far below full time you are enrolled, rounded to the nearest whole percentage point, and the school applies it when it disburses. A student at 50% of full time gets about half of the annual limit. Programs with no terms (non-term programs) are not reduced this way; 34 CFR 685.203(m)(1) applies the reduction to an eligible program “except for a non-term program”. Below half time there is no Direct Subsidized or Unsubsidized loan: 34 CFR 685.200(a)(1)(i) requires the student to be enrolled, or accepted for enrollment, “on at least a half-time basis”. Parent PLUS loans are not reduced. Your school may also set a lower limit for your program, and cost of attendance minus other aid still caps the loan.
Sources (checked October 28, 2026): Pub. L. 119-21, sec. 81001 (HEA 455(a), 20 U.S.C. 1087e(a)), govinfo · 34 CFR 685.203, Loan limits (eCFR) · 34 CFR 685.200, Borrower eligibility (eCFR) · 34 CFR 685.207, Obligation to repay (eCFR) · FSA electronic announcement LOANS-26-05: One Big Beautiful Bill Act NSLDS eligibility processing updates · FSA electronic announcement GENERAL-26-42: update to the list of professional degree programs due to court order · 2026 FSA Training Conference: Loan Changes, Loan Limits and Exceptions, Part 1