Changes to Federal Student Aid
Significant changes to federal student aid were signed into law with the One Big Beautiful Bill Act that will affect students starting with the 2026-27 academic year. The below information reflects the most current guidance available and is subject to change as we receive official guidance from the Department of Education.
Enrollment and Loan Eligibility
Effective with the 2026-2027 academic year, federal direct student loan borrowers enrolled less than full-time for the academic year will have their loan amount recalculated to reflect actual enrolled hours. Full-time enrollment is as follows:
- Undergraduates: 24 credits per academic year (12+ credits per semester)
- Graduates: 18 credits per academic year (9+ or more credits per semester)
- Doctoral: 12 credits per academic year (6+ credits per semester)
If a student drops a class or withdraws after the term begins, it may affect loan mounts in future terms within the same academic year. For example, if you begin the fall term as full-time, but later drop a course or withdraw, your spring loan amount may be reduced, even if you return to full-time in the spring.
Please note that students are still required to be enrolled at least half- time to borrow federal student loans.
Parents of Undergraduate Students
Starting with the 2026-27 academic year, first-time Parent PLUS Loan borrowers have new annual and aggregate (lifetime) loan limits:
- The new annual limit is $20,000 per year per dependent student.
- The new aggregate (lifetime) loan limit is $65,000 per dependent student.
An exception exists to allow Parent PLUS borrowers to borrow under the previous limits—called the “legacy provision.” Qualifications for this exception can be found online here: Parent PLUS Loans | Federal Student Aid
Graduate Students
Starting with the 2026-27 academic year, the Graduate PLUS Loan program for graduate and professional students will be no longer be available, unless you qualify for a limited exception, also known as a “legacy provision”.
To qualify, for this limited exception, you must have been enrolled in your program of study as of June 30, 2026, and remain continuously enrolled in the same program at the same school. Additional details can be found here: Grad PLUS loans | Federal Student Aid
Graduate student borrowers have new aggregate loan limits, as well:
- Graduate students may continue to borrow up to $20,500 annually in Federal Direct Loans (no change).
- The aggregate borrowing amount of Federal Direct Loans is $100,000 per graduate student.
Note, students that are under legacy provision, will remain at the current aggregate limit of $138,500 including undergraduate borrowing.
There is a new lifetime federal loan limit of $257,500, including subsidized, unsubsidized, and Graduate Plus loans.
Federal Pell Grant Change
Please note, starting with the 2026-27 academic year, students who are receiving non-federal grants and scholarships that meet or exceed their full cost of attendance will not be eligible for the Federal Pell Grant.
Please contact our office with any questions regarding your financial aid