Feds’ New $65K Lifetime Parent PLUS Loan Cap Could Create a New Junior Year Retention Crisis
By Autumn A. Arnett Among the numerous changes to federal financial aid policy that went into effect July 1, was a new cap on Parent PLUS loans. For decades, parents of undergraduate students could rely on the Parent PLUS loan program as the ultimate financial safety net, borrowing up to their child’s full Cost of Attendance (COA) to close any remaining tuition gaps left by scholarships and other grant aid, like Pell grants. Now under new federal frameworks, Parent PLUS loans are now strictly capped at $20,000 per academic year per dependent student, with a hard aggregate lifetime limit of