Parent PLUS Loan Updates
Parent PLUS Loans are for parents of dependent undergraduate students.
The One Big Beautiful Bill Act (H.R.1), signed into law by President Trump on July 4, 2025, changes some rules related to Federal Aid (Title IV) programs. Some of those changes impact Federal Direct Parent PLUS Loans available to undergraduate students. As of the development of this webpage, these changes are scheduled to go into effect with the 2026–27 Free Application for Federal Student Aid (FAFSA).
| Loan Component | Current Limits (Prior to the 2026–27 Academic Year) | Changes Effective for 2026–27 Academic Year |
|---|---|---|
| Annual Limit | Determined by the formula of “Cost of Attendance – Other Aid (i.e., grants, scholarships, other loans)” | $20,000 per student (combined from all parents) |
| Aggregate Limit | No limit | $65,000 per student |
| Eligibility & Legacy Rules | Eligibility is based on student enrollment and a minimal credit check of the parent applicant. | Legacy Provision: Students who attended Houston Christian University prior to the 2026–27 academic year and borrowed a Direct Loan (Subsidized, Unsubsidized, or Parent PLUS) may continue borrowing under the previous loan limits for up to three years, or for the remainder of the student’s expected time to complete the program within the published program length, whichever is shorter. Students who change degree programs will no longer qualify for the legacy provision. |
| Alternative Funding | N/A | New Borrowers: Must seek alternative funding if limits are exceeded. |
Important: If you take out the maximum amount each year ($20,000), then in Year 4 you will only have $5,000 left in eligibility for the Parent PLUS Loan. We recommend that you request $16,250 per year so that you will remain eligible through Year 4.
Planning annual PLUS borrowing to ensure continued access 
On the Parent PLUS Loan application, parents should only select the “maximum amount” option if they wish to borrow the full $20,000 for the year. To ensure adequate Parent PLUS Loan eligibility for the duration of the student’s undergraduate program, parents should request a lesser amount on the application. For example, request $16,250 per year for total (aggregate) eligibility to be split equally for a four-year program.
Planning Ahead
For families that may still need additional funds beyond the new OB3 limits, consider investigating the following options:
Information included in this publication is subject to change. Contact the Office of Financial Aid with any questions you may have about this information.