Tip of the Week

It’s hard to find an equilibrium.

When it comes to Parent PLUS Loans, the ability of parents to borrow up to the cost of attendance minus any financial aid, meant students could attend any college where they were admitted. But it also meant parents were racking up tens of thousands if not hundreds of thousands of dollars in debt. In some cases, parents could not reasonably repay the debt and were putting their own financial futures at risk.

The new limitations placed on Parent PLUS Loans by the recent federal Budget Reconciliation law will prevent overborrowing in the Parent PLUS Loan program, but it may also restrict access for some students, causing some to question whether the pendulum has swung too far in the other direction.

There’s no question these new limitations will require students and parents to plan ahead, consider what programs are affordable, and determine how the education will be funded through its entirety. To help with this effort, Mapping Your Future has created a “Borrowing Parent Loans – College Financing July 2026 and Beyond” flyer. The flyer provides an update on the new limitations and other important information about parent loans.

As always, when it comes to finding the right college and figuring out how to pay for it, it’s critical that students and parents plan early to find the right balance.

– By Catherine Mueller