Financing the cost of a high-quality education like the one he will receive at Wabash requires commitment, sacrifice, and careful planning. The Wabash College Financial Aid Office stands ready to help you determine what financing options might work best for you and your family.
If you intend to utilize a parent loan to help finance your son’s Wabash education, read on for some important changes to the Federal Parent PLUS Loan program.
Beginning July 1, 2026, changes to the law (One Big Beautiful Bill Act) affect how much parents can borrow from the Federal Parent PLUS Loan program for their child’s education. There are no changes to how much undergraduates may borrow.
What’s changing?
There are new loan limits for the Federal Parent PLUS Loan program.
- $20,000 per dependent student, per year (annual loan limit)
- $65,000 per dependent student, in total (aggregate limit)
Importance of planning accordingly
The new aggregate limit of $65,000 means that borrowing the annual maximum ($20,000) for a four-year program will cause the parent borrower to reach the aggregate limit before the student completes their degree. PLUS loan availability would be significantly limited in the student’s senior year.
Borrowing the maximum amount each year
- $20,000 freshman year
- $20,000 sophomore year
- $20,000 junior year
- $5,000 senior year
- Total borrowing = $65,000
Planning annual PLUS borrowing to ensure continued success
To ensure adequate Parent PLUS Loan eligibility for the duration of your son’s four years at Wabash, parents should request a lesser amount on the PLUS Loan application each year. For example, request $16,250 per year for the total (aggregate) eligibility to be split equally for a four-year program.
Borrowing evenly over four years
- $16,250 freshman year
- $16,250 sophomore year
- $16,250 junior year
- $16,250 senior year
- Total borrowing = $65,000
What if you, the parent, need to borrow more?
Private education loans for parents are available. While we are prohibited from recommending a specific lender, we provide a couple of comparison tools at https://www.wabash.edu/admissions/finances/loans to help you find a lender. You may discover that a private parent educational loan has more favorable rates and repayment options than the Federal Parent PLUS Loan. Regardless, we strongly encourage you to be informed borrowers and consider your options carefully.
Need help making a loan decision?
We get it; this decision can be daunting. If you need assistance, please schedule an appointment to speak with a Financial Aid team member. We can help you review & compare your options. You can schedule an appointment at https://apply.wabash.edu/portal/financing.