(WAND) – Under the One Big Beautiful Bill, significant changes were made to federal student loans and aid. One of the biggest areas of change was Parent PLUS loans.

“The Parent PLUS loan that is still going to be available for parents of undergraduate students, but the maximum that a parent can borrow each year is going to be $20,000, where under the current program, they can borrow up to the cost of attendance,” explained Michelle Trame, executive director of student financial aid at the University of Illinois. “And then the other change with the parent plus loan is the parent will only be able to borrow a cumulative total of $65,000 in Parent PLUS loans.”

The maximum is per student, meaning parents with multiple kids in college will be able to borrow $65,000 per student. Students who are currently enrolled and have taken out Parent PLUS loans will follow the old rules, not the new ones. They can stay in their current programs as long as they don’t take a semester off, stay in school for more than four years in an undergraduate program, or break the conditions of the loan.

The Institute of Student Loan Advisors (TISLA) is a nonprofit that provides free assistance for people with questions about paying for college. They’ve seen an increase in people looking for answers about the new federal changes.

“The last time we had such a significant change was in 1993, and that piece of legislation expanded payment options and expanded what people could borrow,” said TISLA President Betsy Mayotte. “This is probably the most significant in the history of the student loan programs as far as adding restrictions instead of adding options.” 

Mayotte said each day, more and more people are contacting TISLA for help. She is worried that the cut in federal aid will make more people turn to private loans for help. 

TISLA is also spreading the word that people with Parent PLUS loans need to follow new federal guidelines quickly, otherwise they could lose eligibility. 

“If they are counting on being able to use a plan based on their income, and or if they’re planning on utilizing the program called Public Service Loan Forgiveness, they have to consolidate their existing Parent PLUS loans like today,” Mayotte said. “H.R. one makes it that for any loan where the consolidation is processed, not applied for, processed, or the borrower takes out a new loan on or after July 1, they’re going to be restricted to just a standard repayment plan on all of their loans, old loans and new loans.”

Both Trame and Mayotte said that if students have questions about their financial aid packages, they should connect with their school’s financial aid office.