Loans

Loan Limits

• There are no changes to the loan limits for you, since you don’t intend to receive more loans. If you do determine that you need more aid or you choose to consolidate your loans, you should carefully review the section below about receiving new loans on or after July 1, 2026.

Repayment Plans

• Because all of your loans were first disbursed before July 1, 2026, you’ll retain access to many of the existing fixed payment repayment plans and income-driven repayment plans.

• If your loans are all first disbursed before July 1, 2026, you’ll have access to the following repayment plans, if you’re eligible:

• • Standard Repayment Plan
  • Graduated Repayment Plan
  • Extended Repayment Plan
  • Income-Based Repayment (IBR) Plan
  • Income-Contingent Repayment (ICR) Plan (through July 1, 2028)
  • Pay As You Earn (PAYE) Plan (through July 1, 2028)
  • Repayment Assistance Plan (RAP)

• The only plan that you won’t have access to is the Tiered Standard Plan.

• You can switch between any of the plans for which you’re eligible at any time. However, if you enroll in RAP, any progress (with one exception*) earned toward discharge while in that plan won’t count toward discharge for the IBR, ICR, or PAYE plans if you switch to any of those plans after being in RAP.

• Progress earned under RAP will count toward PSLF if you then switch to the IBR, ICR, or PAYE plan.

• The PAYE and ICR plans will be retired no later than July 1, 2028. We’re working on a transition plan for borrowers who are enrolled in either the PAYE Plan or ICR Plan.

• Learn about your repayment plan options if you’re a parent PLUS borrower who doesn’t intend to take out new loans after July 1, 2026.

*If the monthly payment amount while under RAP is greater than or equal to the 10-year Standard Repayment Plan monthly payment amount, then the month can count toward the IBR, ICR, and PAYE plans.

Loan Limits

• Your annual and aggregate loan limits remain the same as they were before July 1, 2026.

• Your institution may set a loan limit that is lower than the maximum amount allowed by law, as long as the same limit is applied to all borrowers in the same program of study.

• You have a lifetime maximum loan limit of $257,500, which includes the total amount disbursed on all subsidized loans and unsubsidized loans that you receive for your undergraduate studies. If you continue into graduate or professional studies, then the lifetime maximum loan limit will include the loans that you received for undergraduate studies in addition to any subsidized loans, unsubsidized loans and/or PLUS loans for graduate or professional students that you receive for graduate or professional studies. This means that even if you pay off or receive a discharge on any amount of your loans, you can't borrow more than the lifetime maximum loan limit.

• If you’re enrolled less than full time, then your annual loan limit will be adjusted based on your enrollment level.

• If one or more of your parents receives a Direct PLUS Loan for parents, they’ll have reduced borrowing eligibility starting on July 1, 2026. Dependent undergraduate students may receive up to $20,000 annually by all parents, with an overall aggregate limit of $65,000, which includes any amount paid in full or discharged.*

• If it’s determined that one or more parents have adverse credit and are unable to receive a PLUS loan, then your annual Direct Unsubsidized Loan limit increases. However, your parent(s) reaching the annual or aggregate limit for receiving PLUS loans doesn’t increase your Direct Unsubsidized Loan limit.

*After reaching the limit, parents can’t receive additional Direct PLUS Loans for parents. Learn about receiving a parent PLUS loan after July 1, 2026.

Repayment Plans

• If you have at least one loan first disbursed on or after July 1, 2026, you’ll be required to repay all of your eligible Direct Loans under the Repayment Assistance Plan (RAP) or the Tiered Standard Plan.

• If you have Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans for graduate or professional students, or a Direct Consolidation Loan that doesn’t include a parent PLUS loan, then you’re permitted to repay those loans under RAP or the Tiered Standard Plan.

• If you have parent PLUS loans or a Direct Consolidation Loan that includes a parent PLUS loan, you’re permitted to repay those loans only under the Tiered Standard Plan.

For more scenarios including what happens for graduate and professional students, please see the updates on the Studentaid government website.

Repayment Plans

• Because all of your loans are first disbursed before July 1, 2026, you’ll retain access to many of the existing fixed payment repayment plans, as well as the Income-Based Repayment (IBR) and Income-Contingent Repayment (ICR) plans (if you take additional steps). If you have any type of Direct Loan—including a Direct Consolidation Loan—that is first disbursed on or after July 1, 2026, then your access will be limited to only the Tiered Standard Plan. Learn about receiving a Direct PLUS Loan for parents after July 1, 2026.

• If your loans are all first disbursed before July 1, 2026, you’ll have access to the following repayment plans:

• • Standard Repayment Plan
  • Graduated Repayment Plan
  • Extended Repayment Plan
  • Income-Based Repayment (IBR) Plan (requires additional steps)
  • Income-Contingent Repayment (ICR) Plan (requires additional steps)
  • Pay As You Earn (PAYE) Plan (requires additional steps)

• The OBBBA eliminates the ICR and PAYE plans entirely no later than July 1, 2028. We will publish more information about the ICR enrollment deadlines that borrowers with consolidated parent PLUS loans must meet before the ICR Plan is eliminated in order for borrowers to continue to be able to access the IBR Plan.

• If you have parent PLUS loans, you must take additional steps before you can access the IBR or ICR plans. Specifically, you’re required to consolidate your parent PLUS loans into a Direct Consolidation Loan before you can access either the IBR or ICR plans. After your parent PLUS loans have been consolidated, you’re required to make at least one payment on the ICR Plan before you can access the IBR Plan.

• If you take out a PLUS loan for parents and you have any type of Direct Loan, including a Direct Consolidation Loan, that is first disbursed on or after July 1, 2026, then you’re restricted to only the Tiered Standard Plan. If you want to repay your parent PLUS loans using the IBR or ICR plans, then your Direct Consolidation Loan must be disbursed before July 1, 2026. We are not currently experiencing a delay in processing of consolidation applications. We do anticipate that a large number of borrowers will apply to consolidate their loans between now and July 1, 2026.

• If you have a Direct Consolidation Loan that includes a PLUS loan for parents and you want to access the IBR or ICR plans, you can enroll in either plan at any time, with the following two restrictions:

1. • The ICR Plan will be eliminated no later than July 1, 2028. If you have a Direct Consolidation Loan that includes a PLUS loan for parents and you want to access the IBR Plan, you must first make a single payment while enrolled in the ICR Plan before the ICR Plan is eliminated no later than July 1, 2028.
   • If at any point you receive any type of Direct Loan—including a Direct Consolidation Loan—first disbursed on or after July 1, 2026, then you’ll have access to only the Tiered Standard Plan, even if you’ve been enrolled in the IBR or ICR plans. If you take all of the required steps to access the IBR or ICR plans and then take out any type of Direct Loan that is first disbursed on or after July 1, 2026, your servicer will move your loans already in repayment to the Tiered Standard Plan. You’ll have the option to apply for and enroll in the Repayment Assistance Plan for your Direct Loans that aren’t parent PLUS loans or Direct Consolidation Loans that don’t include parent PLUS loans.

Loan Limits

• Some parent PLUS borrowers who receive a Direct PLUS Loan for parents on or after July 1, 2026, will qualify for what’s called an “interim exception” regarding when the new loan limits for the Federal Direct PLUS Loan Program will apply. If you’re a parent PLUS borrower, your qualification for the interim exception depends on your dependent undergraduate student’s eligibility for the exception.
• If you’re ineligible or no longer eligible for the interim exception based on your dependent undergraduate student’s eligibility for the exception, then the new loan limits will apply to you starting on July 1, 2026. However, if you do qualify for the exception based on that child’s enrollment, then the new loan limits for parent PLUS loans will be enforced no later than the 2029–30 award year (i.e., from July 1, 2029, to June 30, 2030), but they could be enforced earlier if your child takes an action that causes you to lose eligibility for the exception. You can determine whether you qualify for the exception and how to maintain the exception.
• If you do qualify for the interim exception, the maximum annual amount you may borrow is equal to your child’s cost of attendance minus other aid that your child received. If you don’t qualify for the exception (including if your child previously qualified for the exception but takes an action that causes you to lose eligibility for the exception), then you’ll have reduced borrowing eligibility starting on July 1, 2026. A dependent undergraduate student’s parents may borrow a total of up to $20,000 annually on behalf of that child, with an overall aggregate amount of $65,000 per child. After reaching the limit, parents won’t be permitted to receive additional parent PLUS loans.
• The limitations for receiving parent PLUS loans apply to each student for which a parent is receiving a PLUS loan. Practically, this means the following three things:
  • If you have two or more students for whom you’re borrowing, you can borrow up to the cost of attendance minus other aid received, not to exceed $20,000 annually, for each student.
  • If you have two or more students for whom you’re borrowing, you can borrow up to $65,000 for each student.
  • If a student has multiple parents who each would like to receive a PLUS loan on the student’s behalf, the annual and aggregate limitations apply based on the student, not the parents. This means that if two (or more) parents want to receive a PLUS loan for parents, they may not borrow more than $20,000 annually, or $65,000 with all of the parents combined.
• If it’s determined that one or more parents have adverse credit and are unable to receive a PLUS loan, then the limit increases for how much in Direct Unsubsidized Loans a student may borrow annually. However, one or more parents reaching their annual or aggregate limit for receiving PLUS loans doesn’t increase the student’s ability to receive additional Direct Unsubsidized Loans.
• Your student’s institution may set a loan limit that is lower than the maximum amount allowed by law, as long as the same limit is applied to all students in the same program of study.

Repayment Plans

• If you have parent PLUS loans or a Direct Consolidation Loan that includes a parent PLUS loan, or any other type of Direct Loan, any of which are first disbursed on or after July 1, 2026, then you’re permitted to repay the Direct Consolidation Loan or the parent PLUS loan under only the Tiered Standard Plan.
• If you have other types of Direct Loans that are not a PLUS loan for parents or a Direct Consolidation Loan that includes a PLUS loan for parents, then those other loans may be repaid under either the Repayment Assistance Plan or the Tiered Standard Plan.
• If you have a Direct Consolidation Loan that paid off a Direct Consolidation Loan that paid off a PLUS loan for parents (sometimes referred to as a double consolidation) or any other type of Direct Loan, any of which is first disbursed on or after July 1, 2026, then you’ll have access to only the Tiered Standard Plan for your Direct Consolidation Loan or your parent PLUS loans.

No. If you are currently receiving aid or are in repayment, your loans and grants remain under their present terms for now. Most changes apply starting on July 1, 2026.

If you are currently enrolled and participating in student and or parent loan programs at Cochise College, there are no changes to the aid you have already received.

If you or your parent borrowed a student loan for a term that begins before Wednesday, July 1, 2026, you may be eligible to borrow under the previous loan limits. If you are a graduate student, you may borrow additional Graduate PLUS Loans under the previous loan limits to finish your current program of study or for three years, whichever is shorter.

To be eligible for previous loan limits, including Graduate PLUS, you must be continuously enrolled in your current program of study. If you take a leave of absence or go on academic pause, you will be considered a new borrower subject to the new loan limits. You will also be considered a new borrower if you temporarily stop attending your current program of study to enroll in and or complete another program.

 

Starting in 2026–27, your annual federal loan eligibility will be reduced in proportion to how far below full-time you are, based on an ED-issued reduction schedule.