: Starting July 1, 2026, Graduate PLUS loans will no longer be available for new borrowers. New Borrowing Caps :
: Limited to $20,500 per year (lifetime cap of $100,000).
: Borrowers can subtract $50 per month from their calculated payment for each dependent child listed on their tax return.
The most significant "interesting" feature appearing in 2026 is the , a streamlined federal income-driven option that officially replaces older, more complex plans like SAVE and PAYE for new borrowers starting July 1, 2026 . Key Features of the New "RAP" Plan
: The plan is designed to shield borrowers from "runaway interest," ensuring that full, on-time payments help reduce the actual principal balance over time.
: Monthly payments are set at 1% to 10% of your annual adjusted gross income.
: Now capped at $20,000 per year per student with a $65,000 lifetime limit.
