Affordability
The Borrowing Gap: where college costs more than a family can borrow
A first-year dependent student and their parents can borrow at most $25,500 from the federal government for 2026-27. At 241 of 2,441 colleges reporting federal net-price data, the average price after grants exceeds that even for families earning under $30,000.
By CampusPin Research · Published September 22, 2026
Executive summary
On 1 July 2026 the federal government capped what parents can borrow for a child's education. Parent PLUS is now limited to $20,000 a year per dependent student and $65,000 in total, where it was previously limited only by the cost of attendance. A first-year dependent undergraduate can borrow $5,500 in their own name, so the most a first-year family can put on federal loans is $25,500.
Set that ceiling against what colleges actually charge after grant aid, and the question stops being abstract. Across the 2,441 institutions that report the complete federal net-price series, 241 (9.9%) charge families earning under $30,000 more than $25,500 a year, a median of $4,231 beyond the ceiling at those colleges. For families earning over $110,000, 902 institutions (37%) are above it.
The gap is concentrated, not general. No public two-year college in the dataset is above the ceiling in any income band, and 1 of 668 public four-year colleges is above it for the lowest-income families. Private two-year colleges are the outlier: 65 of 184 (35.3%) charge the lowest-income families more than a family can borrow. Meanwhile 945 institutions charge those same families under $10,000, and 346 charge under $5,000. Both facts come from the same file.
Key findings
- The federal ceiling for a first-year dependent student is $25,500: $5,500 in Direct Loans plus the new $20,000 Parent PLUS annual cap, effective 1 July 2026.
- Families earning under $30,000: 241 of 2,441 institutions (9.9%) charge more after grants than that ceiling; the median institution in this band charges $12,472.
- Families earning $30,001–$48,000: 267 of 2,441 institutions (10.9%) charge more after grants than that ceiling; the median institution in this band charges $13,159.
- Families earning $48,001–$75,000: 363 of 2,441 institutions (14.9%) charge more after grants than that ceiling; the median institution in this band charges $15,844.
- Families earning $75,001–$110,000: 624 of 2,441 institutions (25.6%) charge more after grants than that ceiling; the median institution in this band charges $19,660.
- Families earning over $110,000: 902 of 2,441 institutions (37%) charge more after grants than that ceiling; the median institution in this band charges $22,026.
- By sector, for families under $30,000: 35.3% of private two-year colleges and 17.3% of private four-year colleges are above the ceiling, against 0.1% of public four-year and 0% of public two-year colleges.
- The states with the most institutions above the ceiling for the lowest-income families are CA 48 of 210, FL 22 of 84, NY 17 of 167, MA 16 of 73, TX 15 of 145. Counts follow the number of private colleges in a state, not a state's policy.
- If parents cannot borrow Parent PLUS, which requires no adverse credit history, the student's own $5,500 is the whole federal option, and 2,050 institutions are above that for families earning under $30,000.
- 945 institutions charge families earning under $30,000 less than $10,000 a year after grants, and 346 charge less than $5,000. The ceiling binds at a minority of colleges, not at most of them.
- under $30,000: 241
- $30,001–$48,000: 267
- $48,001–$75,000: 363
- $75,001–$110,000: 624
- over $110,000: 902
For each family income band: the number and share of institutions whose average net price exceeds the federal first-year borrowing ceiling of $25,500, the median net price, and the median amount by which those above it exceed the ceiling.
| Family income band | Institutions analysed | Median net price | Above the federal ceiling | % above the ceiling | Median gap above the ceiling |
|---|---|---|---|---|---|
| under $30,000 | 2441 | 12472 | 241 | 9.9 | 4231 |
| $30,001–$48,000 | 2441 | 13159 | 267 | 10.9 | 4249 |
| $48,001–$75,000 | 2441 | 15844 | 363 | 14.9 | 4574 |
| $75,001–$110,000 | 2441 | 19660 | 624 | 25.6 | 4526 |
| over $110,000 | 2441 | 22026 | 902 | 37 | 6145 |
Every state
Colleges in each state that report the complete federal net-price series, and how many charge more after grants than the $25,500 a first-year dependent student and their parents can borrow federally from 1 July 2026, for families earning under $30,000 and $48,001–$75,000. States with fewer than 7 reporting colleges are omitted. Net prices are averages for federal aid recipients in a prior cohort, not a quote for any family.
| State | Colleges reporting | Above the ceiling, income under $30,000 | Median net price, under $30,000 | Above the ceiling, $48,001–$75,000 | Median net price, $48,001–$75,000 |
|---|---|---|---|---|---|
| Alabama | 40 | 0 (0%) | $12,859 | 2 (5%) | $15,132 |
| Arizona | 37 | 6 (16.2%) | $12,407 | 9 (24.3%) | $15,623 |
| Arkansas | 33 | 0 (0%) | $12,803 | 0 (0%) | $14,750 |
| California | 210 | 48 (22.9%) | $12,650 | 60 (28.6%) | $15,075 |
| Colorado | 40 | 1 (2.5%) | $11,440 | 5 (12.5%) | $14,889 |
| Connecticut | 26 | 10 (38.5%) | $19,666 | 12 (46.2%) | $19,919 |
| District of Columbia | 8 | 1 (12.5%) | $17,481 | 2 (25%) | $19,769 |
| Florida | 84 | 22 (26.2%) | $17,877 | 27 (32.1%) | $20,310 |
| Georgia | 64 | 7 (10.9%) | $13,066 | 9 (14.1%) | $16,350 |
| Hawaii | 11 | 3 (27.3%) | $7,397 | 2 (18.2%) | $10,881 |
| Idaho | 11 | 0 (0%) | $10,000 | 0 (0%) | $12,902 |
| Illinois | 88 | 4 (4.5%) | $10,199 | 6 (6.8%) | $12,702 |
| Indiana | 46 | 5 (10.9%) | $12,754 | 5 (10.9%) | $17,276 |
| Iowa | 42 | 2 (4.8%) | $14,499 | 1 (2.4%) | $16,910 |
| Kansas | 43 | 1 (2.3%) | $10,914 | 2 (4.7%) | $14,458 |
| Kentucky | 44 | 1 (2.3%) | $8,244 | 2 (4.5%) | $10,698 |
| Louisiana | 34 | 1 (2.9%) | $10,397 | 2 (5.9%) | $13,304 |
| Maine | 21 | 2 (9.5%) | $9,441 | 3 (14.3%) | $11,676 |
| Maryland | 35 | 2 (5.7%) | $10,634 | 7 (20%) | $16,670 |
| Massachusetts | 73 | 16 (21.9%) | $14,892 | 20 (27.4%) | $20,471 |
| Michigan | 67 | 3 (4.5%) | $9,228 | 4 (6%) | $13,554 |
| Minnesota | 60 | 1 (1.7%) | $11,226 | 1 (1.7%) | $13,111 |
| Mississippi | 26 | 0 (0%) | $9,761 | 1 (3.8%) | $13,019 |
| Missouri | 61 | 3 (4.9%) | $12,238 | 4 (6.6%) | $15,086 |
| Montana | 15 | 0 (0%) | $11,410 | 0 (0%) | $15,553 |
| Nebraska | 26 | 2 (7.7%) | $12,543 | 2 (7.7%) | $15,028 |
| Nevada | 12 | 4 (33.3%) | $12,219 | 4 (33.3%) | $15,146 |
| New Hampshire | 17 | 2 (11.8%) | $16,794 | 4 (23.5%) | $19,283 |
| New Jersey | 52 | 5 (9.6%) | $11,842 | 6 (11.5%) | $15,061 |
| New Mexico | 13 | 0 (0%) | $5,104 | 0 (0%) | $7,488 |
| New York | 167 | 17 (10.2%) | $12,286 | 37 (22.2%) | $17,775 |
| North Carolina | 69 | 4 (5.8%) | $14,377 | 7 (10.1%) | $16,785 |
| North Dakota | 14 | 0 (0%) | $9,910 | 0 (0%) | $14,058 |
| Ohio | 121 | 10 (8.3%) | $14,348 | 16 (13.2%) | $17,647 |
| Oklahoma | 35 | 1 (2.9%) | $11,948 | 3 (8.6%) | $13,848 |
| Oregon | 33 | 2 (6.1%) | $13,219 | 5 (15.2%) | $15,683 |
| Pennsylvania | 156 | 13 (8.3%) | $16,905 | 31 (19.9%) | $19,812 |
| Rhode Island | 11 | 7 (63.6%) | $27,575 | 6 (54.5%) | $29,769 |
| South Carolina | 47 | 3 (6.4%) | $14,037 | 4 (8.5%) | $16,242 |
| South Dakota | 14 | 0 (0%) | $14,027 | 0 (0%) | $17,838 |
| Tennessee | 53 | 2 (3.8%) | $12,559 | 6 (11.3%) | $16,890 |
| Texas | 145 | 15 (10.3%) | $11,426 | 21 (14.5%) | $14,602 |
| Utah | 17 | 4 (23.5%) | $9,601 | 5 (29.4%) | $12,374 |
| Vermont | 9 | 2 (22.2%) | $18,855 | 3 (33.3%) | $22,423 |
| Virginia | 62 | 4 (6.5%) | $13,183 | 7 (11.3%) | $17,331 |
| Washington | 58 | 4 (6.9%) | $8,664 | 7 (12.1%) | $12,169 |
| West Virginia | 25 | 0 (0%) | $8,292 | 0 (0%) | $11,772 |
| Wisconsin | 51 | 0 (0%) | $10,392 | 1 (2%) | $14,130 |
| Wyoming | 7 | 1 (14.3%) | $7,602 | 1 (14.3%) | $9,698 |
Questions families ask
- How much can a family borrow from the federal government for a first-year student in 2026-27?
- At most $25,500 for a dependent first-year undergraduate: $5,500 in the student's own Direct Loans plus up to $20,000 in Parent PLUS, the annual cap that took effect on 1 July 2026 (with a $65,000 total per student). Parent PLUS requires no adverse credit history and is limited to cost of attendance minus other aid, so $20,000 is a maximum, not a guarantee.
- At how many colleges does the price after grants exceed what a family can borrow federally?
- It depends on family income. Of the 2,441 institutions reporting the complete federal net-price series, the average price after grants is above the $25,500 ceiling at 241 for families earning under $30,000, 267 for families earning $30,001–$48,000, 363 for families earning $48,001–$75,000, 624 for families earning $75,001–$110,000, 902 for families earning over $110,000. At the colleges above it for the lowest-income families, the median gap is $4,231 a year.
- Which colleges cost more than families can borrow under the new federal loan limits?
- Mostly private colleges. For families earning under $30,000, 35.3% of private two-year and 17.3% of private four-year colleges are above the ceiling, against 0.1% of public four-year and 0% of public two-year colleges. The states with the most such colleges are CA 48 of 210, FL 22 of 84, NY 17 of 167, MA 16 of 73, TX 15 of 145, which follows how many private colleges a state has. This report names no college; each college's CampusPin profile shows its own net price by income against the ceiling.
- If a college costs more than we can borrow, does that mean we cannot afford it?
- No. Savings, income, payment plans, outside scholarships, work and private loans all sit outside this measure, and net price is an average for students who received federal aid in a prior cohort, not a quote for any one family. It means federal loans alone will not cover the average price after grants.
- What if my parents cannot get a Parent PLUS loan?
- This report's student-only measure uses the $5,500 a first-year dependent student can borrow in their own name, and 2,050 institutions charge families earning under $30,000 more than that after grants. Some students whose parents are denied Parent PLUS may qualify for additional unsubsidized loans; the college's financial aid office can confirm.
- Are the net prices and the loan limit from the same year?
- No. The ceiling is the 2026-27 federal limit; the net-price series reflects a prior entering cohort, and the federal source does not expose a single cohort year. Read the comparison as today's ceiling against the most recently published prices.
Methodology
Prices come from the U.S. Department of Education net-price-by-income series (College Scorecard / IPEDS) as carried in CampusPin's database, captured as a checksummed snapshot on 2026-08-12. Only the 2,441 institutions reporting the complete five-band series are analysed.
"Net price" is the average paid after grant and scholarship aid by students receiving federal financial aid, in each federal family-income band. It includes living costs, and it already nets out Pell and institutional grants.
The borrowing ceiling is taken from the Department of Education's own loan-limit guidance for loans first disbursed on or after 1 July 2026: $5,500 for a first-year dependent undergraduate ($3,500 of it subsidized), plus the $20,000 annual Parent PLUS limit per dependent student. Both figures are the published maximums, not averages.
An institution is counted as "above the ceiling" in a band when its average net price for that band exceeds $25,500. The median gap is taken across only those institutions above it.
Two sensitivities are published beside the headline: the student-only ceiling of $5,500 (parents denied or unwilling to take Parent PLUS) and $9,500 for an independent first-year student, who has no PLUS option.
State figures are published only where at least 7 institutions in that state report the series. Medians are across institutions and unweighted by enrollment.
Every figure in this report is computed from the committed aggregate file by scripts/build-borrowing-gap.mjs; none is entered by hand, and --validate re-derives all of them from the source snapshot.
Limitations
- The two figures do not share a year. The ceiling is the 2026-27 maximum; the net-price series reflects a prior entering cohort, and the federal source does not expose a single cohort year. Read this as today's ceiling against the most recently published prices.
- Parent PLUS is capped at cost of attendance minus other aid and requires no adverse credit history, so $20,000 is a maximum rather than an entitlement. Families who already borrowed before 1 July 2026 may qualify for an interim exception to the new caps.
- Net price is an average for students who received federal financial aid, not a quote for any individual family. A family's own figure can be higher or lower.
- Being above the ceiling does not mean a family cannot attend. Savings, current income, institutional payment plans, outside scholarships, state aid and private loans are all outside this measure.
- Medians are across institutions and unweighted by enrollment, so a small college counts the same as a large one. Public institutions enrol a far larger share of undergraduates than their share of institutions.
- CampusPin records control as public or private only, and approximates degree level from institution type rather than recording it; at least one two-year college is typed as four-year. Sector figures carry that error and are reported as secondary.
- This is a description of published federal data. It establishes nothing about what any institution's pricing or aid policy caused.
- No ranking is published and no institution is named here; per-institution figures are on each college's own CampusPin profile.
For journalists
From 1 July 2026 a first-year dependent student and their parents can borrow at most $25,500 from the federal government: $5,500 in Direct Loans plus the new $20,000 annual Parent PLUS cap. Against that ceiling, 241 of 2,441 colleges reporting the federal net-price series charge families earning under $30,000 more than they can borrow, and 902 do so for families earning over $110,000. No public two-year college in the dataset exceeds the ceiling in any band, and 945 institutions charge the lowest-income families under $10,000 a year. Net price is an average for federal aid recipients from a prior cohort, not a quote for an individual family.
Free to cite with attribution to CampusPin and a link to this page. The income-band table is downloadable as CSV; per-institution figures are on each college's CampusPin profile. Three caveats we ask you to carry: (1) the ceiling is 2026-27 while the price series reflects a prior cohort, so this is today's limit against the latest published prices; (2) Parent PLUS requires no adverse credit history and is capped at cost of attendance minus other aid, so $20,000 is a maximum, not a guarantee; (3) exceeding the ceiling does not mean a family cannot attend , savings, income, outside scholarships and private loans sit outside this measure. Contact: [email protected].
Sources, methodology & citation
Sources used across this page
Not every source informs every figure. Each data point draws on the source appropriate to it see the relevant section and the data dictionary for field-level provenance.
U.S. Department of Education College Scorecard
Net price by income band, post-graduation earnings, and federal aid context.
IPEDS / NCES College Navigator
Federal enrollment, admissions, tuition, retention, and program data. Released annually with a 1–2 year lag.
Federal Student Aid, Loan Limits FAQ (May 2026)
The Department of Education’s published Direct Loan and Parent PLUS limits for loans first disbursed on or after 1 July 2026.
Where a value is unavailable it is shown as unavailable, never as 0, free, or a negative judgment. Always confirm final details with the institution before applying.
Suggested citation
CampusPin. (2026). The Borrowing Gap: where college costs more than a family can borrow. Retrieved from https://campuspin.com/research/the-borrowing-gap
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