Federal Direct Parent PLUS Loan

Changes Effective July 1, 2026

Do You Qualify For A Legacy Exception?

You may be allowed to follow the old Parent PLUS loan rules if:

• Your student stays continuously enrolled at Luther College and

• Your student received a Direct Loan before July 1, 2026, or you (the parent) borrowed a Parent PLUS Loan for this student in the past.

If you qualify, you can keep borrowing up to the full cost of attendance for up to three more years, as long as your student stays continuously enrolled at Luther College.

If your student graduates or stops attending the new loan limits will apply.

If You Do NOT Qualify For The Exception

• You can borrow up to $20,000 per year in Parent PLUS Loans per student (annual limit).

• You can borrow up to $65,000 total for each student (lifetime limit).
  • Parents will not be able to borrow $20,000 every year for four full years.
  • Please plan ahead so funding lasts for all four years of college.

How To Apply

• Student must complete the FAFSA

• Apply for a Parent PLUS Loan
  • Complete the Master Promissory Note (first time borrowers)

• Request the loan amount you need
  • Most parents will be limited to $20,000 per year and $65,000 total.
  • If you qualify for the Legacy Exception you may still borrow up to the full cost of attendance for a limited time.

You do not need to request the maximum amount. Our staff can help you decide how much you need for the year.

Private Loan Options

Private loans are not federal loans. Luther College provides a preferred lender list to help students compare private loan choices.

If you would like help with this process please contact our office.

Luther College Financial Aid

563-387-1018

finaid@luther.edu