00;00;03;17 - 00;00;27;01
Speaker 1
Important changes are coming to the federal Parent Plus direct loan program changes that will affect all new borrowers across the country, including families here at JMU. Let's walk through what's new and what parents need to know before borrowing. The One Big Beautiful Bill act, signed into law on July 4th, 2025, made major updates to the Parent Plus loan program.

00;00;27;03 - 00;00;51;20
Speaker 1
These new rules apply to all new borrowers after July 1st, 2026, which includes parents borrowing for students who begin college. As of that date, and parents of current students who have not already borrowed a federal direct loan. Even if the parent has borrowed Parent Plus loans for other children in prior years. Under the updated rules, the borrowing limit is associated with each student, not each parent.

00;00;51;22 - 00;01;17;23
Speaker 1
That means for a student's education, the amount borrowed can be up to $20,000 per year and no more than $65,000 for total lifetime in parent plus loans. Regardless of how many parents want to borrow on the student's behalf, here's something important. Parents of first year students who borrow the full $20,000 each year will only have $5,000 left for the student's fourth year.

00;01;17;26 - 00;01;44;01
Speaker 1
This has the potential to create real financial strain near the end of a student's degree. If the goal of a first year parent is to borrow the full $65,000 but spread it evenly. Borrowing no more than $16,250 per year allows for four years of consistent funding. Just remember, in this example of the first year student, once that fourth year is done, parent plus eligibility for that student ends.

00;01;44;06 - 00;02;13;02
Speaker 1
So staying on track to graduate in four years is essential to help families avoid running out of eligibility. JMU will typically include no more than $16,250 in the initial parent plus loan amount on financial aid offers. Depending on the student's overall aid, the amount offered may be lower when it's time to borrow. Parents will complete the Direct Plus loan application from the Federal Direct Loan Program.

00;02;13;05 - 00;02;48;29
Speaker 1
JMU will send instructions to parents via email when it's time to apply. The application gives parents two choices. One. Request the maximum loan, or two enter a specific amount to borrow. Here's the key thing to understand if a parent selects maximum, JMU is required to process the full $20,000 as long as the student is eligible. Even if the financial aid offer shows $16,250, this means parents who select the maximum amount may use up all loan eligibility before the student completes their program of study.

00;02;49;02 - 00;03;09;17
Speaker 1
To keep borrowing steady across all four years, parents of first year students should enter a specific amount, such as $16,250 or less. These new rules make it more important than ever to borrow carefully. If you have questions, JMU was here to help you understand your options and make the best financial decisions for your students college journey.