High School Seniors Enter a New Student Loan Era in 2026

Core Insights - High school seniors entering college in fall 2026 will encounter a transformed federal student loan landscape due to the 'One Big Beautiful Bill' which implements significant changes effective July 1, 2026 [1][2] Loan Limits - Stricter loan limits will be imposed on Parent PLUS loans, allowing families to borrow only up to $20,000 per year with an aggregate limit of $65,000 per child, contrasting with the current system that has no aggregate limit [4][5] - Nearly 30% of Parent PLUS loan borrowers will be impacted by these new limits, primarily affecting middle-to-higher income families not eligible for Pell Grants [5][6] Repayment System Changes - A new repayment system will be introduced for college students taking loans after July 1, 2026, which will differ significantly from current options [7][9] - Borrowers will be placed in a standard repayment plan based on their loan size, with repayment periods ranging from 10 to 25 years [11][12] - The new Repayment Assistance Plan (RAP) will replace two existing income-driven repayment plans by 2028, potentially increasing monthly payments for lower-income borrowers compared to current plans [13][14]