📉 New Student Loan Rules Just Changed the Math on Student Housing If you invest in student housing—especially properties near grad-heavy programs—read this twice. A quiet shift in federal lending policy will cap how much students can borrow starting July 1, 2026, and it’s going to hit graduate programs hard. 🔍 Here’s what’s changing: 🚫 Grad PLUS loans eliminated — no more uncapped borrowing for grad students 🧮 Lifetime federal loan cap: $257,500 (undergrad + grad combined) 📉 New limits: $100K for master’s, $200K for med/law/dental 🏦 Parent PLUS loans capped at $20K/year, $65K total per child 💸 No more SAVE, PAYE, or IBR for new borrowers — only a “standard” or scaled-back plan remains ⏳ Forbearance limited to 9 months every 2 years 🚫 Hardship deferments phased out Yes, there’s a 3-year grace window. But starting Fall 2029, every new grad student will be living under these new rules. 💥 What this means for student housing CRE investors: Grad students drive demand in many student housing markets. These changes… Shrink borrowing power Increase cost sensitivity Push students toward online, commuter, or cheaper alternatives Create risk for 2nd- and 3rd-tier grad schools—right where many investors chased yield If your property relies on $1,000/month per bed rents from future grad students with no federal lending safety net, you’ve got a problem. 🎯 Investor Checklist: ✅ Who’s your core renter—grad or undergrad? ✅ How many rely on federal loans to cover both tuition and rent? ✅ Is your school tuition-dependent or backed by deep research dollars? ✅ Are your floorplans “value” or “luxury”? ✅ Can your underwriting survive a 5–10% occupancy hit in 2029? Add one more line to your rent roll model: “Stress test: no Grad PLUS. $257K lifetime cap. How many students can still afford this unit?” 👀 The days of assuming student demand will always rise are over. The federal loan engine just downshifted. https://lnkd.in/eXVaa6B2