Americans owe $1.87 trillion in student loan debt as of the first quarter of 2026, with lawmakers intensifying calls for relief ahead of sweeping federal changes taking effect July 1. The debt total represents a 3.3 percent increase from the same period a year earlier, underscoring the persistent burden on millions of borrowers even as Congress debates reform measures.
Quick Facts
- Total student loan debt reached $1.87 trillion as of Q1 2026, up from $1.805 trillion in Q1 2025
- Graduate PLUS loans will be eliminated for new borrowers starting July 1, 2026
- Parent PLUS loans will be capped at $20,000 per child annually and $65,000 lifetime, effective July 1, 2026
- 44.6 million borrowers hold federal student debt as of Q3 2025
The July 1 changes stem from the One Big Beautiful Bill Act, which Congress enacted to reshape federal student lending. Under the new rules, graduate students will no longer have access to Grad PLUS loans unless they qualify for limited exceptions. Parent PLUS borrowers will face stricter annual and lifetime caps, a significant shift from the previous system that allowed borrowing up to the full cost of attendance.
The delinquency rate on student loans has worsened recently. As of Q1 2026, 10.34 percent of federal student loans were 90 days or more delinquent, up sharply from 7.74 percent a year earlier. This trend has prompted lawmakers to push for additional relief measures before the July deadline.
In February 2026, U.S. Representatives Dan Goldman and Sara Jacobs introduced the Generating Relief for Academic Debt Using Assisted Repayment Act, proposing expanded assistance for borrowers. More recently, Congressional Democrats filed a resolution seeking to rescind aspects of the Education Department’s implementation of the One Big Beautiful Bill, signaling ongoing debate over how the new rules will affect college access and affordability.
The July 1 student loan changes affecting Parent PLUS and Grad loans will reshape how families finance higher education. Students and parents who need to borrow should act before the deadline to lock in grandfathered status under older, more flexible rules if eligible.
Sources
- LendingTree — confirmed $1.87 trillion total student loan debt figure and delinquency statistics as of Q1 2026
- Azusa Pacific University — documented elimination of Graduate PLUS loan program effective July 1, 2026
- Urban Institute — reported Parent PLUS loan caps of $20,000 annual and $65,000 lifetime limits
- U.S. House of Representatives — confirmed Goldman and Jacobs introduced student loan relief legislation in February 2026
