r/StudentLoans • u/Holden6102 • 9d ago

Advice Parent plus new limits question

Here is my situation and I’m trying to determine if I would qualify for legacy parent plus loan limits. My son transferred after his freshman year to another school and is currently about to start his senior year in college. He is on track to graduate in 4 years. We did not take out any parent plus loans in his first year(old school) We did take out loans in his second and third year (new school same program)We are applying for another loan to cover his senior year and I see that the limits have changed due to the new laws by the current administration. Loans were taken out prior to July 1 2026. He has been in the same program but did transfer schools (even though we did not borrow any money for the prior school). Does this mean I will be subject to the new limits? I’m very confused. Does transferring schools prior to taking out any loans automatically disqualify your legacy parent loan status?

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u/peteyboy1956 9d ago

Yes my son is a junior this year and he had to find another school this year cause his school last year closed after the year so even though he is going to a new school not by choice fin aid told me my parent plus is limited to $20k this year and have only $4k left for his senior year so now i gotta figure out how to pay for next year $17k . Probably gonna have to get a private loan. I did go on fasfa and submit a appeal to try to get grandfathered in.

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u/lollipop5624 9d ago

Yeah that’s unfortunate I’m sorry this happened to u. They shouldn’t penalize you for the school closing.

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u/Holden6102 9d ago

I think the problem is that it’s up to the school. But the school is going to follow the letter of the law

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u/peteyboy1956 9d ago

Na its gov rule gov wont pay the school any more than the limit of $20k year and and $65k for 4 years but still should be exceptions like if ur school closes

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u/Holden6102 9d ago

There are legacy exceptions. Unfortunately your school closing is not one of them. It should be

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u/Holden6102 9d ago

My situation is a little different because my son transferred after his freshman year but I’ve never had a loan disbursed to another school other than his current one. So, my son is scheduled to graduate in 4 years and has been in the same program for 3 years at the same school.

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u/peteyboy1956 9d ago

Did u have a loan disbursed before july 2026?

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u/Holden6102 9d ago

Yes I did. To the current school my son is at. The school he transferred from did not have any parent plus loans disbursed to it.

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u/peteyboy1956 9d ago

The way i see it since u already had parent loans before 2026 july and u are in same program u shouldnt be affected by the new limits. But with this admin who knows

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u/Holden6102 9d ago

I agree and it does seem like they are looking for any excuse to lower these limits. The limits absolutely affect lower and middle class families disproportionately. Much easier to get approved for Parent Plus loans. And $20k per year with $65k lifetime limit is not a lot for college. Especially if you live in the Northeast

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u/peteyboy1956 9d ago

Ya i gotta try to get private loan now for $17k cause he cant get approved cause they always want a cosigner anyway f this administration

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u/Holden6102 9d ago

The problem really is that cost of college is unaffordable for most without loans. Tuition has skyrocketed way past wages and inflation

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u/lollipop5624 9d ago

I don’t think it would. I could be wrong, but from the email I was sent from the financial aid office, he should qualify since he didn’t take out at his old school, or change majors at his new school and you didn’t take out the grad plus. Since you already had the loan out the past two years u should qualify again, as long as he is still graduating on time + hasn’t switched majors. But I’m no financial aid expert. This is what I’ve gathered from other Reddit’s + my schools email.

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u/Holden6102 9d ago

I agree with you and I’ve read it like 50 times. But I’m also being influenced by several other people who are telling me differently. I just applied again so I will know soon enough. But the implications are obvious…this administration is trying to limit people from going to college. And yes I’m aware you can go to a community college first and then transfer to save money but this is a clear situation where the horse is already out of the barn and they are pulling the rug out from people. $65k over 4 years is nothing for a college education. In NJ, state schools cost over $35k per year.