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Federal Student Loan Changes Coming July 2026
Are you ready? Big changes ahead for Louisiana college borrowing
Federal student loan changes start July 2026
The federal budget law that passed this summer means tighter borrowing limits for new federal student loan borrowers in Louisiana. Here are some key changes that go into effect on July 1, 2026, for new federal student loans:
- Grad PLUS loans will no longer be offered.
- New separate borrowing caps for graduate and professional students.
- Parent PLUS loans have new limits.
- New lifetime borrowing limit for undergraduate plus graduate studies (excluding any Parent PLUS amount borrowed on the student’s behalf).
- There are new repayment terms and options.
Need a responsible way to bridge your college financing gap? Lela can help.
If you need additional money for college, Lela can help in ways other lenders don’t. That’s because Lela, Louisiana’s nonprofit resource for college access and financing, offers Louisiana students and families:
- Low-interest borrowing options through the LelaCHOICE supplemental loan programs and
- Refinancing through the LelaRefiHELP program.
LelaCHOICE offers better student loan options for Louisiana undergraduate and graduate students. Click here to view loan rates that fit your situation.
The Lela Difference
Lela is Louisiana’s nonprofit college financing resource
- FIXED low rate from 2.94 %-6.37% APR (with auto-pay)
- Flexible repayment plans
- No application or origination fees
- No pre-payment penalties
- No capitalized interest ever
- Cosigner options available
- Easy online application process, instant credit decisions
- Interest rate reduction benefit for selecting Auto-debit
- Knowledgeable and friendly LelaCHOICE team is available to assist you!
- Added Benefits for Graduate Students:
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- Higher loan limits
- New No Cosigner Loan option
- Extended prior debt period
- Residency internship forbearance offered, upon request
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More than 460,000 Louisiana students have received financing or outreach assistance since Lela’s inception in 1984.
Lela’s Mission
500,000+
students helped with college financing
one nonprofit mission
48 YEARS
of experience in student lending
100% Louisiana-based Non profit organization
What others are saying about Lela …
“We take advantage of the Lela program because they offer great benefits to our students. They usually offer lower interest rates, and they help students finance that gap when the federal aid is not enough to cover tuition and fees. The students can fall back on those private loans after they have exhausted all federal aid.” — Wendy LeBlanc, Director, Office of Financial Aid, FranU
“The staff is kind, courteous, and easy to speak with. The interest rates were the lowest I could find which was a relief with the ever-rising rates that we have been experiencing for quite some time. I have passed along the recommendation to all of my friends who have kids in college and now they are singing the praises of Lela. Honestly, I think that anyone who is looking for a student loan will come away with the same love for Lela that I have. Great job, Lela!!!” — Connie Meyer, LelaCHOICE Supplemental Loan Borrower
“We have a partnership with Lela. With so many of our students being first-generation college students, a lot of parents have not been through this process before. So, to have that extra help that Lela provides is so instrumental to our families here.” — Dr. Latricia Warren, Principal, Varnado High School