OBBBA Update

Parent PLUS Is Now Capped at $20,000/Year, Fill the Gap With LoanAmerica

Under the OBBBA, Parent PLUS loans are capped at $20,000 annually. For families at schools costing $40K-$80K per year, that leaves a massive gap. LoanAmerica's Parent Loan bridges it.

The New Parent PLUS Reality

Before the OBBBA, parents could borrow up to the full cost of attendance through Parent PLUS. Starting July 2026, borrowing is capped at $20,000 per year.

For a family sending a student to a school costing $55,000/year, after scholarships and student loans, the Parent PLUS cap creates a $15,000-$35,000 annual gap that needs to be filled.

The Math: What Families Actually Face

$55,000

Typical Total Cost

$20,000

New Parent PLUS Cap

$35,000

Gap Before Other Aid

How LoanAmerica's Parent Loan Works

The LoanAmerica Parent Loan provides up to $35,000 per year to cover costs beyond the Parent PLUS cap. Unlike PLUS loans, there's no origination fee and funds are disbursed in 72 hours, not 6-8 weeks.

Our Credential Score underwriting model means approval isn't based solely on credit score. We factor in the student's program quality, graduation rates, and employment outcomes.

Cost Breakdown

Item	Cost
Total Cost of AttendanceAverage 4-year private institution	$55,000/yr
Scholarships & Grants	-$12,000
Student Direct Loans	-$5,500
Parent PLUS (New Cap)	-$20,000
Remaining GapLoanAmerica Parent Loan covers this	$17,500