Graduate PLUS Loan Limited Exception

A time-limited exception allows students to continue borrowing Graduate PLUS Loans if they meet the eligibility requirements below.

Eligibility Requirements

Students may qualify if they

  • Remain continuously enrolled in the same program at the same institution as of June 30, 2026, AND 
  • Received a Direct Loan disbursement (Direct Unsubsidized or Graduate PLUS) for that program before July 1, 2026

Maintaining Eligibility

To remain eligible for the limited exception:

  • The student must stay continuously enrolled 
  • Enrollment interruptions (such as withdrawal or stopping attendance outside scheduled breaks) will result in loss of eligibility

Program Length and Limited Exception Eligibility

Students must meet initial eligibility requirements and remain within the standard length of their program to continue qualifying for the limited exception. The standard length is defined as the time it would take to complete the program when attending full-time each term.

A student’s remaining eligible years are calculated by taking the standard length of the program and subtracting the number of years the student has already attended in that program.

The limited exception is available for the lesser of

  • Three academic years, or
  • The remaining time needed to complete the program, based on its standard length

If a student meets or exceeds the standard program length, they are no longer eligible for the limited exception.

  • Graduate PLUS Loan borrowers will no longer be eligible to borrow under the Graduate PLUS program
  • Graduate Direct Unsubsidized Loan borrowers will become subject to the new aggregate and lifetime loan limits

Graduate Student Limited Exception Scenarios

Parent PLUS Loan Changes

Beginning July 1, 2026, new federal limits apply to Parent PLUS Loans:

  • $20,000 annual limit per student 
  • $65,000 aggregate limit per student

Parent PLUS Limited Exception

A time-limited exception allows some families to continue borrowing above the new limits for up to three years, provided eligibility is maintained.

Eligibility Requirements

To qualify:

  • The student must remain continuously enrolled in the same program at the same institution as of June 30, 2026, AND 
  • One of the following must apply: 
    • The parent borrower received a Parent PLUS Loan disbursement for that program before July 1, 2026, OR 
    • The student received a Direct Loan (subsidized or unsubsidized) for that program before July 1, 2026

Maintaining Eligibility

To remain eligible for the limited exception:

  • The student must stay continuously enrolled 
  • Enrollment interruptions (such as withdrawal or stopping attendance outside scheduled breaks) will result in loss of eligibility

When the Parent PLUS Limited Exception Ends

Parent PLUS Loans will be limited to:

  • $20,000 per year per student 
  • $65,000 lifetime limit per student

Limited Exception Parent PLUS Scenarios

What to Do if Additional Funding Is Needed

If borrowing limits are reached, consider exploring other funding options that may be available to support your education: