WINK Smart: New federal limits for federal student loans explained

New rules surrounding federal student loans are changing how much millions of students and parents are able to borrow from the government to pay for college.

• RELATED: New laws are changing the way you pay back your student loans; What you need to know

This is just one of many changes implemented by the Trump Administration under the One Big Beautiful Bill Act, effective as of July 1. Signed into law back on July 4 of last year, the OBBA established new loan limits for the Direct PLUS Loan Program.

More coverage of what has changed this month, including brand-new repayment plans, can be found here.

Many parents spend years planning how they will help their children pay for school, so WINK Smart is breaking it down.

The Parent PLUS Loan program allows parents to take out a federal loan for their eligible dependent undergraduate students.

Prior to July 1, parents could borrow up to the full cost of tuition for their children's school.

Starting this month, parents cannot borrow more than $20,000 a year and no more than $65,000 total per student.

Even if any loans have been repaid, forgiven, or discharged, the $65,000 loan cap still remains, and parents will not be able to borrow any more PLUS federal loans.

Student borrowers now have lifetime loan limitations as well. Borrowers cannot borrow more than $257,500.

To check eligibility or find more information on federal student aid, click here.