What's New in Loans?
EFFECTIVE July 1, 2026: The One Big Beautiful Bill (OBBB) has made significant changes in federal student loan programs:
- New PLUS loans will be capped at $20,000 per student per year; existing PLUS borrowers who have borrowed for their Hampshire students before July 1, 2026 are not affected by this change for three more years or until the student's program ends.
- New PLUS borrowers will have a lifetime limit of $65,000 per dependent student.
- Review What New Parent PLUS Loan Borrowers Need to Know
- Review What Current Parent PLUS Loan Borrowers Need to Know
- Students who borrow federal student loans after July 1, 2026 will no longer be eligible to select current income-driven repayment plans (IBR, PAYE, SAVE) and replaces them with a new Repayment Assistance Program (RAP).
- Students who will not borrow any new loans after July 1, 2026 can continue to be eligible to enroll in the current Standard, Income Based (IBR), Graduated, and Extended repayment plans, and could also choose to enroll in the new Repayment Assistance Program (RAP).
EFFECTIVE July 1, 2025: The fixed interest rate on subsidized AND unsubsidized loans made to undergraduate students on or after July 1, 2025 through June 30, 2025 is 6.3 percent (6.39%). The fixed interest rate on Parent PLUS loans made to parents of dependent undergraduate students on or after July 1, 2025 through June 30, 2026 is 8.94 percent (8.94%).
EFFECTIVE July 1, 2024: The fixed interest rate on subsidized AND unsubsidized loans made to undergraduate students on or after July 1, 2024 through June 30, 2025 is 6.533 percent (6.533%). The fixed interest rate on Parent PLUS loans made to parents of dependent undergraduate students on or after July 1, 2024 through June 30, 2025 is 9.083 percent (9.083%).
EFFECTIVE July 1, 2023: The fixed interest rate on subsidized AND unsubsidized loans made to undergraduate students on or after July 1, 2023 through June 30, 2024 is 5.50 percent (5.50%). The fixed interest rate on Parent PLUS loans made to parents of dependent undergraduate students on or after July 1, 2023 through June 30, 2024 is 8.05 percent (8.05%).
EFFECTIVE July 1, 2022: The fixed interest rate on subsidized AND unsubsidized loans made to undergraduate students on or after July 1, 2022 through June 30, 2023 is 4.99 percent (4.99%). The fixed interest rate on Parent PLUS loans made to parents of dependent undergraduate students on or after July 1, 2022 through June 30, 2023 is 7.54 percent (7.54%).
EFFECTIVE July 1, 2021: The fixed interest rate on subsidized AND unsubsidized loans made to undergraduate students on or after July 1, 2021 through June 30, 2022 is 3.73 percent (3.73%). The fixed interest rate on Parent PLUS loans made to parents of dependent undergraduate students on or after July 1, 2021 through June 30, 2022 is 6.28 percent (6.28%).
EFFECTIVE July 1, 2020: The fixed interest rate on subsidized AND unsubsidized loans made to undergraduate students on or after July 1, 2020 through June 30, 2021 is 2.75 percent (2.75%). The fixed interest rate on Parent PLUS loans made to parents of dependent undergraduate students on or after July 1, 2020 through June 30, 2021 is 5.30 percent (5.30%).