Changes to Federal Student Loans

  1. Cost of Attendance and Financial Aid
  2. Loans and Grants
  3. Changes to Federal Student Loans

The One Big Beautiful Bill (OBBB) Act, signed in July 2025, will change how federal student loans are processed starting July 1, 2026.

Latest Updates

We are waiting for final details from the Department of Education on how these adjustments will be calculated. We will keep you updated as more information becomes available. Stay informed about the big updates from the new law.

What’s Changing?

While total loan limits for undergraduates are staying the same, the OBBB Act introduces loan proration. This means your federal loan amount will now be tied directly to your enrollment level. If you are enrolled less than full-time, your loan eligibility may be reduced to reflect your actual credit load. More information on this change is not yet available.

New Parent PLUS Loan Limits

  • Annual Limit: Parents may borrow up to $20,000 per year for each dependent student.
  • Aggregate (Lifetime) Limit: There is a new lifetime cap of $65,000 per student.
  • Combined Limits: These caps apply to the student, not the individual parent. If both parents borrow for the same student, their combined total cannot exceed the $20,000 annual or $65,000 lifetime limits.

Under the legacy provision, parents of dependent undergraduates who have borrowed a parent PLUS loan or their student borrowed a subsidized or unsubsidized that disbursed before July 1, 2026, may be able to continue borrowing with no changes in eligibility of their annual limit for parent PLUS loans.

Significant changes are coming to federal graduate aid starting July 1, 2026.

Grad PLUS is Ending

The Grad PLUS loan is being phased out. If students have not borrowed a federal loan prior to July 2026, they will be limited to Federal Unsubsidized loans only.

  • The Legacy Exception: If you are a current student and have already received a federal loan disbursement before July 1, 2026, you are "grandfathered" in. You can continue to access Graduate PLUS loans under existing annual limits to help finish your current degree. Please read the maintaining you legacy status area below.
  • New Lifetime Caps: New graduate borrowers will face a lifetime limit of $100,000 for graduate-level loans. Importantly, any loans you took out for your undergraduate degree do not count toward this $100,000 cap.

If you are a "Legacy" borrower (meaning you received a federal loan disbursement before July 1, 2026), you can keep your current loan limits for a limited time—but only if you follow specific enrollment rules.

The Requirements for Legacy Eligibility

  • Continuous Enrollment: You must remain enrolled at the same school without a break.
  • Same Program: You must stay in the same degree program.
  • Undergraduates: You can change your major, but you cannot change your degree level (e.g., moving from an Associate’s to a Bachelor’s program will void your legacy status).
  • Graduate Students: Changing your major or program will immediately transition you to the new, lower OBBB loan limits.

How Long Does Legacy Status Last?

Legacy benefits are not indefinite. They expire at the earliest of these three dates:

  1. When you complete your current degree.
  2. After 3 additional academic years.
  3. At the end of the 2028–2029 academic year (the final cutoff for all legacy status).

Note: Withdrawing from school or transferring to a different institution will result in the loss of your legacy eligibility.