It used to be that parents and students had the opportunity to finance higher education with almost no limit to the amount they could borrow.

The H.R.1 - One Big Beautiful Bill Act, changes that. It imposes new limits to parent financing and student loans. In particular, capped borrowing for graduate students at $50,000 per year for professional studies and $20,000 for other programs.

With Parent PLUS loans also facing new annual and total caps and credit underwriting criteria, it's even more important for families of high school students to understand these limits, considering they may only have a year or two to plan and establish the funds to cover college.

Private Student Loans: Pros and Cons for Borrowers

While you still have alternative financing options, such as private loans, there's much more of a “math game” to it, because debt-to-income ratios and credit scores become significantly more important.

Understanding New Federal Limits for Loans (for Students and Parents)

(00:01:08) Graduate Student Loans Borrowing Changes

(00:05:38) Parent PLUS Loan Borrowing Limits and Criteria

(00:08:49) Customizable Borrowing Options for Private Student Loans

(00:11:43) Financial Eligibility Based on Debt and Income

(00:17:22) Grad Plus Loan Elimination and Co-signing Risks

(00:21:09) "If you are looking at a school that's $90,000 a year, but you know, realistically, you're not going to get aid for whatever reason, but you don't have the savings to pay $9,000 a year. And now you might not have the ability to borrow $90,000 a year. That school can't be on the list. Right. There's, there's no way it's gonna happen." - Jack Wang

Connect with host, Jack Wang: https://www.linkedin.com/in/thejackwang/

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Navigate college funding with me at www.smartcollegebuyer.com

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