Statement on Department of Education’s Reversal on Grad PLUS Guidance
FOR IMMEDIATE RELEASE
Contact: Allie Arcese
Sr. Director, Strategic Communications
[email protected]
WASHINGTON, D.C., APRIL 21, 2026 — The Department of Education (ED) on Monday revised its previous guidance, now stating that Graduate PLUS loans will be included in the new $257,500 lifetime borrowing limit established through the One Big Beautiful Bill Act (OBBBA), NASFAA has learned. The new limit will apply as of July 1, 2026, to all borrowers except those who qualify for the limited exception to the new loan limits.
This revision in guidance is a follow-up to an April 17 webinar on legacy loan limits, during which ED provided conflicting answers to the question of whether Grad PLUS loans would not count in the lifetime borrowing limit.
While ED’s proposed Reimagining and Improving Student Education (RISE) regulations stated that Graduate PLUS loans would not be included in the lifetime limit, it has now revised its position to note that these loans will, in fact, be included in that limit. This is based on a new interpretation of the statute. Parent PLUS loans continue to be exempt from the lifetime limit.
In response to this news, NASFAA President & CEO Melanie Storey released the following statement:
“The Department of Education’s latest reversal to include Graduate PLUS loans under the new $257,500 lifetime borrowing limit only adds to an already confusing and rapidly shifting policy landscape. With many schools preparing to issue financial aid offers in the coming weeks — and some doing so this month — this approach is both irresponsible and unfair to students and financial aid professionals who are working in good faith to make informed decisions amid inconsistent and incomplete information.
When significant policy changes are rolled out without clear, formal, and widely distributed guidance, there are severe consequences that directly affect students who need definitive answers now in order to make plans to pay for college.
Equally concerning is the method of communication. Informal updates shared through limited channels do not meet the Department’s obligation to provide transparent, consistent guidance to all Title IV institutions. We urge the Department to immediately issue clear, formal guidance and to prioritize timely, transparent communication moving forward. The successful implementation of these changes requires nothing less. Students and institutions alike deserve certainty — not confusion — when navigating changes of this scale.”
NASFAA policy experts are available to speak to members of the media about policy changes being implemented as a result of the One Big Beautiful Bill Act. To set up an interview, please email [email protected].
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About NASFAA
The National Association of Student Financial Aid Administrators (NASFAA) is a nonprofit membership organization that represents more than 29,000 financial aid professionals at approximately 3,000 colleges, universities, and career schools across the country. NASFAA member institutions serve nine out of every 10 undergraduates in the U.S. Based in Washington, D.C., NASFAA is the only national association with a primary focus on student aid legislation, regulatory analysis, and training for financial aid administrators.
Publication Date: 4/21/2026
