2026-27 Loan Changes

The One Big Beautiful Bill Act signed into law on July 4, 2025 contained several provisions impacting federal student loans beginning with the 2026-27 academic year.

Borrower’s aggregate loan amount to borrow, annual limit to borrow, ability to borrow PLUS and amount to disburse will be impacted. These updates are highlighted below. More information is available from NASFAA (pdf).

UNDERGRADUATE BORROWERS

What stays the same

Undergrad loan limits (annual amounts and aggregate limit)
Annual amount based on dependency status and grade level ($5,500 - $12,500)
Aggregate amount of $31,000 for dependent and $57,500 for independent students.

What is changing

Parent PLUS limits. Updated annual and lifetime limits apply to PLUS loans. Students may be eligible for up to $20,000 per year in Parent PLUS loans, with a $65,000 aggregate limit.

Exception: Continuing students who have previously received a Federal Direct Loan or a PLUS loan in their current degree at Andrews University may be eligible to borrow under current limits for up to three academic years or the remainder of their expected time to complete the program, whichever is less (legacy students).

Legacy students, if you take a leave of absence or withdraw from your academic program after July 1, 2026 you will lose eligibility for the legacy exception, even if you later re-enroll in the same program.

NOTE: Students may want to consider private student loans to cover out of pocket cost.

GRADUATE BORROWERS

What's changing

Graduate loan limits.
- Graduate students may borrow up to $20,500 per year with an aggregate limit of $100,000.
- Professional students may be eligible for up to $50,000 in Direct Unsubsidized loans, with an aggregate limit of $200,000.
Graduate PLUS loans have been eliminated for new borrowers.

Exception: Continuing student borrowers in the same Andrews University academic program may retain PLUS eligibility for up to three academic years or the remainder of their program length for their program, whichever is less (legacy students).

NOTE: Students may want to consider private student loans to cover out of pocket cost.

ALL BORROWERS

Reduced Annual Loan Limits for Part-Time Enrollment. If your enrollment is less than full-time, your loan limit must be reduced proportionally.

Resources

Other sources for non-government loans are still available. Ask about scholarships that may be available. For dependent students, some employers have educational subsidy.