2026-27 Loan Changes

The Trump Administration signed the One Big Beautiful Bill Act into law in July 2025. This act makes significant changes to the federal loan program. The changes start July 1, 2026 and will be phased in over the next three years.

Undergraduate

• Subsidized and Unsubsidized limits have not changed.
  • If you are are a part-time student taking less than 12 credits, your loan amount will be based on the credits you are taking.
• Parent PLUS Loan limits have been reduced for new borrowers.
  • You can borrow up to $20,000 per year per student with a lifetime maximum of $65,000.
  • Using multiple parents does not change the amount that can be borrowed. 
  • If you took out a Parent PLUS loan prior to the 2026-27 school year, these changes do not apply.

Graduate/Professional

• The Grad PLUS loan program has been terminated. All federal loans will now be Unsubsidized.
• Graduate, non-professional students will have a $20,500 annual limit with an aggregate limit of $100,000. 
• Graduate, professional students will have a $50,000 limit with an aggregate limit of $200,000.  Combined limit for both Graduate and Professional is $200,000.
• Some programs are allowed to exceed these limits. Ask your Financial Aid Advisor if you have more questions.
• If you are currently in a program, the old limits will apply for 3 academic years or program completion, whichever comes first. Changing programs will cause the new limits to apply. The overall limit for all loans, excluding Parent PLUS, is $257,500.

Repayment

• Loans currently in repayment will stay in the current plan until July 1, 2028.
• Loans starting repayment after July 1, 2026, will have two repayment plan options:

1. Standard repayment plan 
2. Income Based repayment plan  

• The standard plan will be assigned unless other arrangements are made. 
• Parent PLUS loans are only eligible for the standard plan.
• Consolidation Loans will be eligible for the Income Based Repayment program.

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.

More Information

Handout from NASFAA (pdf)