A Department of Education sign outside the Federal Student Aid Office on May 18, 2025 in Washington, DC.
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The National Association of Student Financial Aid Administrators says the U.S. Department of Education has provided conflicting information regarding federal student loan borrowing limits scheduled to go into effect this summer.
A provision of President Donald Trump’s “Big and Beautiful Act,” passed last year, set a new lifetime borrowing limit for federal student loan borrowers at $257,500 starting July 1, 2026.
But the Department of Education has issued contradictory statements about whether certain loans taken out by graduate students (Grad PLUS loans) will count toward the new borrowing limit, NASFAA, an organization representing university financial aid administrators, said in a statement this week.
“This approach is irresponsible and unfair to students and financial aid professionals who are working in good faith to make informed decisions amid inconsistent and incomplete information,” NASFAA President and CEO Melanie Storey said in a statement.
Ellen Keast, the U.S. Department of Education’s higher education spokeswoman, said the department is finalizing the regulatory process for new loan limits and will soon address these concerns.
But uncertainty about borrowing limits comes at a time when students are deciding whether and which school to attend graduate school in the fall.
“The lack of clear guidance makes it difficult for students to plan how to pay for their college education,” said higher education expert Mark Kantrowitz.
The One Big Beautiful Bill Act completely eliminates the Grad PLUS loan program starting July 1st. However, those who already have a loan may be able to borrow less in the future if that debt is used in the calculation. Kantrowitz said the lifetime limit will likely include all previous borrowings, even if the student has paid them off.
Grad PLUS borrowers who are currently enrolled in school “have graduated and can continue to borrow without aggregate limits for the remainder of their educational program or three years, whichever comes first,” he added.
