Changes for 2026–2027

Beginning with the 2026–2027 award year, federal loan eligibility may be reduced for students who are enrolled less than full time.

Prior to the 2026–2027 award year, students may have been eligible for the maximum annual loan limit for their academic year. Effective July 1, 2026, loan eligibility will be determined in part by enrollment status. Students enrolled less than full time will have their loan eligibility reduced proportionally based on their level of enrollment.

Starting July 1, 2026, the Graduate Direct PLUS Loan program will no longer be available to new graduate and professional student borrowers.

Some students may be able to continue borrowing through the Graduate Direct PLUS Loan program under a limited legacy provision. This exception may apply through the student’s expected time to credential, or for a maximum of three academic years, whichever is less.

Students may qualify for the legacy provision if they:

• Remain continuously enrolled in the same credential-level program at the same institution as they were enrolled as of June 30, 2026; and
• Received a Federal Direct Loan disbursement, either unsubsidized or Graduate PLUS, for that same program before July 1, 2026.

The act establishes updated annual, aggregate, and lifetime borrowing limits for certain federal loan programs.

*The graduate student aggregate limit does not include undergraduate federal loans.

Parent PLUS Loan borrowers may be able to continue borrowing under the previous loan limits if the student remains enrolled in the same program of study at the same institution as they were enrolled as of June 30, 2026.

In addition, one of the following must apply:

• The parent borrower had a Parent PLUS Loan disbursed for that same program before July 1, 2026; or
• The student has a Direct Loan, either subsidized or unsubsidized, disbursed for that same program before July 1, 2026.

Some students and borrowers may still qualify for previous federal loan structures under a limited legacy provision.

Eligibility depends on several factors, including continuous enrollment, program level, institution, and whether a qualifying federal loan was disbursed before July 1, 2026.

Students and families should contact the Financial Aid Office to review their individual circumstances.

Federal Pell Grant eligibility rules are also changing beginning with the 2026–2027 award year.

Students may be ineligible for a Federal Pell Grant if their full cost of attendance is covered by non-federal sources, or if their Student Aid Index, also known as SAI, is more than twice the maximum Pell Grant.

Students and families should begin planning for these upcoming changes to federal student aid programs. If you expect to borrow federal loans in future academic years, it is important to understand how the new borrowing limits and eligibility requirements may affect your financial aid options.

Students are encouraged to:

• Review their current and anticipated borrowing needs for the 2026–2027 school year.
• Understand how enrollment status may impact federal loan eligibility beginning with the 2026–2027 award year.
• Contact the Financial Aid Office with questions about how these changes may affect their individual circumstances.