A year at Miami University costs $36,558. Under new federal loan limits, a parent can borrow $65,000 for a child's entire degree.
The limits took effect July 1 and come from a budget law President Donald Trump signed in July 2025. The Education Department said the caps would stop borrowers from taking on debt they cannot repay.
What a student borrows each year did not change. Dependent undergraduates may still take $5,500 as freshmen, $6,500 as sophomores and $7,500 as juniors and seniors.
The change hits Parent PLUS loans, which go to a parent of a dependent undergraduate enrolled at least half-time. The parent, not the student, owes the money and must pass a credit check.
Parents once could borrow whatever the school cost, housing included. They are now capped at $20,000 a year and $65,000 per child. Families who borrowed before July 1 keep the old rules three more years.
At Miami, Ohio's priciest public university, a parent borrowing the full $20,000 covers a little more than half a year and runs out in senior year. Dayton, a private school, lists tuition alone near $50,600.
Cheaper schools narrow the gap but do not close it. Ohio State charges $14,050 in tuition and fees, and housing and dining add $15,738. Four years there runs close to $120,000, and $65,000 covers a little over half. Toledo is among the state's cheapest at about $12,500 in tuition and fees, and housing pushes the four-year total well past the cap.
Families have other places to look. Ohio State covers tuition and fees for eligible new students at its Lima, Mansfield, Marion and Newark campuses, and for qualifying Columbus State transfers through Buckeye Bridge. Ohio University urges families to file the FAFSA even if they think they earn too much.
For those who hit the ceiling, private lenders are an option, though Amy Czulada of Protect Borrowers cautions them to read the terms first. Private loans offer no income-based payments and no forgiveness.
Americans owe about $1.87 trillion in student loans, the Federal Reserve reported for March. About 1.78 million Ohioans carry some of it, at an average balance of $35,072, The Pennant reported Monday. Protect Borrowers counts 428,740 Ohioans in default.