The Digester

Education Department's RISE proposal would cap Grad and Parent PLUS loans and could raise payments

Mar 9th 2026

The Education Department's RISE proposal would change repayment rules, cap Graduate and Parent PLUS borrowing, and stop new Graduate PLUS loans after July 1, 2026, potentially raising payments for some borrowers.

  • The department is proposing the Reimagining and Improving Student Education rule, or RISE, to change repayment rules for federal student loans.
  • The proposal could increase monthly payments for some borrowers by changing repayment options.
  • No new Graduate PLUS loans would be issued after July 1, 2026 under the proposal.
  • Graduate PLUS borrowing could be limited to about $50,000 per year under the plan.
  • Parent PLUS loans would face new annual limits and an overall cap of around $65,000.
  • More than 440,000 students used Graduate or Parent PLUS style loans in 2023-2024, so many families may need private loans, scholarships, or tighter budgets if borrowing shrinks.

Sources

abcnews4.com