When the Loan Cap Isn't Enough
The new $200,000 lifetime cap on Parent PLUS loans is here. For families choosing expensive private colleges, this creates a gap that scholarships alone won't close. Here are your seven realistic options.
Your Options for Covering the Gap
Apply for Scholarships
Students should pursue this, but be realistic—typical awards of $1,000-$2,000 won't cover a $40,000+ gap.
Request Additional Financial Aid
Negotiate with the school, especially if you qualify for Pell Grants. Middle-income families might get a few thousand more, but it rarely closes the full gap.
Explore Need-Based Programs
Additional scholarship opportunities exist, but again—won't solve a massive shortfall.
Find Part-Time Work
For students (though working 20-40 hours weekly first year isn't ideal) or parents seeking additional income. Also consider cutting household costs: subscriptions, private school for siblings, etc.
Tuition Payment Plans
Break the gap into monthly or semester payments. A $40,000 gap means $6,500 every 8-9 weeks per semester, or $3,000-$4,000 monthly—in addition to your PLUS loan payments.
Additional Federal Student Loans
Only available if parents are denied PLUS loans entirely. If approved but capped at $200K, this doesn't help.
Private/Alternative Loans
Companies like Sallie Mae and SoFi offer loans with interest rates between federal student loans and PLUS loans. Schools may occasionally offer institutional loans.
No single option solves a $40,000+ annual gap. This is why choosing an affordable college from the start matters more than ever.
What This Means for Private Colleges
The $200K cap will hit expensive private schools hardest. Schools charging $80,000-$90,000 annually will see families unable to finance the full cost. This is a major shift in college affordability that will likely impact private school enrollment significantly.
Expect more families to choose:
State schools
More affordable private colleges
Schools offering substantial merit aid
For comprehensive information on recent federal aid changes: GWU Financial Aid - Recent Changes
Deal in facts, not rumors. The PLUS loan cap makes college affordability more important than ever—but nursing degrees, state schools, and smart college choices remain viable paths forward.