Federal Direct Parent PLUS Loan Changes

Interim Exception

If you meet certain requirements, you’ll have a period of time after July 1, 2026, and before the new limits apply during which you might be eligible for a Direct Loan under the pre-OBBBA limits. This is called the “interim exception.”

Prior Borrowers

Current borrowers may be eligible for “interim exception” and be exempted from the new regulations based on the following:

  • The student remains continuously enrolled in the same program at URI AND
  • The parent has borrowed a Parent PLUS Loan for the student at URI prior to July 1, 2026 OR
  • The student has borrowed a Federal Direct Student Loan at URI prior to July 1, 2026

If these conditions are met the student may continue to borrow under previous Parent PLUS Loan rules. The parent may borrow up to the student’s Cost of Attendance (COA) for:

  • Up to three academic years OR
  • The remainder of the student’s expected time to complete the program, whichever comes first.

New Borrowers and Prior Borrowers Who Exhausted Eligibility

New borrowers are parents who have never borrowed a Federal Direct Parent PLUS Loan OR the student has not borrowed a Federal Direct Student Loan prior to July 1, 2026. Parents who are new borrowers are subject to the new $20,000 annual loan limit.

  • Annual borrowing limit: $20,000 per academic year per dependent student
  • Lifetime borrowing limit: $65,000 per dependent student

Disclaimer: While the U.S. Department of Education has not yet released final implementation guidance, the University of Rhode Island is monitoring federal updates closely and will revise this page as additional information becomes available. Details below are based on current rules and may change based on federal guidance.

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