As students prepare for the fall semester, new federal limits on Parent PLUS loans are changing how some families finance college, imposing annual and lifetime borrowing caps for the first time and potentially leaving funding gaps for those who previously relied on the program to cover remaining tuition costs.
Previously, Parent PLUS borrowers could generally borrow up to the full cost of attendance, minus other financial aid. New borrowers are now limited to $20,000 per year and $65,000 over a student’s lifetime. Undergraduate federal Direct Loan limits remain unchanged, but colleges nationwide are adjusting financial aid strategies as families weigh how the new restrictions could affect college affordability.
“I feel like it doesn’t make sense that we lowered it in the first place,” said Mackenzie Bizub, an incoming first-year photography major. “College gets more expensive every year. The loans should be increasing, if anything.”
At Columbia College Chicago, the policy’s impact has yet to fully emerge. Many students at the college’s New Student Orientation said the new borrowing limits were not expected to affect their plans, often because scholarships, grants or other financial aid covered much of their costs.
Others said they were unaware the rules had changed.
“I won’t be paying much,” said incoming first-year acting for stage and screen student Michal Laczak. “My tuition is covered by scholarships, so I won’t be paying anything.”
Transfer student Jennifer Aguilera, who is majoring in performance and songwriting, said her financial aid covers her education, but she’s worried about classmates who may not be in the same position.
“Personally, my student loan was covered,” Aguilera said. “But I know that it’s going to be difficult for a lot of people”
She pointed to the reality many students already face balancing work, housing and tuition.
“Being a student, you have to work and pay your rent and all that stuff,” she said. “Obviously, that’s a huge thing to think about.”
The new borrowing caps add another financial consideration for colleges like Columbia as they work to recruit and retain students. Columbia reported 3,958 enrolled students in Spring 2026, marking the first time in more than two decades that enrollment fell below 4,000 students.
Families who cannot cover remaining costs through scholarships, payment plans or other resources may need to consider private loans or other options to finance a degree.
Columbia administrators say they are already helping students navigate the changes.
“At Columbia College Chicago, our priority remains ensuring that finances do not become an unnecessary barrier to student success,” said Emmanuel Lalande, senior vice president of enrollment strategy and student success.
Lalande said Student Financial Services will work individually with students to maximize grants and scholarships, establish payment plans and connect families with additional institutional and outside financial resources. The college is also working with its development office to expand scholarship funding.
Lalande emphasized that the new policy does not affect every student equally because undergraduate federal Direct Loan limits remain unchanged, while the largest changes apply to new Parent PLUS borrowers.
As students and families prepare for the academic year under the new borrowing rules, Lalande said early conversations with financial aid offices will be essential to understanding what options remain available.
“My advice to students and families is simple: don’t wait,” Lalande said. “If you are concerned about how these changes affect your ability to enroll or return this fall, contact your financial aid office as early as possible. The earlier we have those conversations, the more options we have to build a workable financial plan.”
Copy edited by Katie Peters
