Student Loan Update

Navigating the Latest Federal Loan Revisions

Starting July 1, 2026, new federal laws will bring important changes to Federal Direct Loans.

We know navigating financial aid can be challenging, so we have put together this page to help you understand the upcoming federal loan changes and what they mean for you. The details shared here reflect our current knowledge of these changes under the One Big Beautiful Bill Act. We will keep this page updated as more information becomes available from the U.S. Department of Education.

Overview

For the most up-to-date federal information, please visit studentaid.gov.

PLUS Loans

Starting July 1, 2026, new limits apply to Parent PLUS Loans.

Yearly Limit: $20,000 per year for each dependent student.
Total Limit: $65,000 total per dependent student.
Existing Borrowers: Parents who have already borrowed a Parent PLUS Loan for a dependent student prior to July 1, 2026, are grandfathered into the previous, uncapped loan limits. This status lasts for three academic years or until the student graduates, whichever comes first.

PLUS Loan Repayment and Public Service Loan Forgiveness
To keep Public Service Loan Forgiveness (PSLF) or Income Driven Repayment eligibility, Parent PLUS Loans must be consolidated into a Direct Consolidation Loan prior to July 1, 2026, and enrolled in the Income Driven Repayment (ICR) plan prior to July 1, 2028.

If a parent takes out a new Parent PLUS Loan on or after July 1, 2026, the loan will only qualify for the new tiered repayment plan and will not be eligible for Public Service Loan Forgiveness (PSLF) or the Income Driven Repayment (ICR) plan.

Loan Reduction Based on Enrollment
Beginning with the 2026-2027 academic year, annual Federal Direct Loan limits will change based on enrollment.

Federal loans will only be disbursed at 100% for full-time enrollment.
Students enrolled less than full-time will have their federal loans reduced in direct proportion to their enrollment status.
If a student’s enrollment status changes during a semester, federal loan amounts will be recalculated and adjusted accordingly.

Graduate PLUS Loan Eligibility

The Graduate PLUS Loan is ending on July 1, 2026.

Existing Borrowers: Graduate students who have already borrowed a Graduate PLUS Loan for their current program prior to July 1, 2026, can continue to borrow. This exception lasts for three years, or until the student graduates, whichever comes first.

Graduate Unsubsidized Loan Limits

Beginning July 1, 2026, and annual unsubsidized loan limit for graduate students remains at $20,500 per academic year, but the lifetime borrowing limit is now capped at $100,000.

Existing Borrowers: If a graduate student has borrowed an unsubsidized loan for their current program prior to July 1, 2026, they are grandfathered in and can continue to borrow under the previous loan limits for up to three years, or until graduation, whichever comes first.

Loan Reduction Based on Enrollment

Beginning with the 2026-2027 academic year, annual Federal Direct Loan limits will change based on enrollment.

Federal loans will only be disbursed at 100% for full-time enrollment.
Students enrolled less than full-time will have their federal loans reduced in direct proportion to their enrollment status.
If a student’s enrollment status changes during a semester, federal loan amounts will be recalculated and adjusted accordingly.