Parents may borrow $20,000 a year and $65,000 in all per child
What the document says“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 section adds a new paragraph (5) to section 455(a) of the Higher Education Act of 1965 capping, from July 1, 2026, PLUS borrowing by all parents of a dependent student at $20,000 a year and $65,000 in total for that student, without regard to any amount repaid, forgiven, canceled or otherwise discharged.
What the document actually says“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.”
All parents together may borrow up to $20,000 a year. That is for one dependent child.
The total cap for that child is $65,000. Money paid back does not free up room. Nor does money forgiven or canceled.
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