2026-2027 Changes

Starting July 1, 2026, annual loan amounts will be prorated directly based on your enrollment status, as mandated by OBBBA. Your loan eligibility will be calculated at the time of disbursement, using the number of credits a full-time student is expected to take for the academic year as the baseline.

Annual Undergraduate Loan Limit Example
For example, a sophomore dependent student with a $6,500 annual loan limit who enrolls at half-time (6 out of 12 credits) would only be eligible to borrow 50% of that limit, or $3,250 for the year. Simply put: $6,500 × 0.50 = $3,250, so the less credits you take, the less you can borrow.

No, most of these changes will begin with the 2026-2027 academic year. So any aid you received in the 2025-2026 academic year will remain the same.

OBBBA removes most current income-driven repayment plans and replaces them with a new repayment framework. Any loans that will be borrowed after July 1st, 2026, are subject to only the newly created repayment plans.

The Public Service Loan Forgiveness (PSLF) program will be continued, allowing eligible borrowers to pursue loan forgiveness. The recently enacted federal student loan repayment framework may facilitate qualification for some borrowers, particularly those with lower incomes. Further specifications regarding the interaction between PSLF and the new framework are contingent upon pending rulemaking.

Currently, no action is required from students or families beyond completing the 2026-2027 FAFSA to determine their federal financial aid eligibility. Our Financial Aid Office will handle Pell Grant, federal loan, and other proration.

No, the new law does not change the yearly or aggregate loan borrowing limits for an undergraduate student. A new lifetime loan limit of $257,500 has been created, which will look at all student federal loans accepted in undergraduate, graduate, and professional study programs.

Overall, no, Pell Grant funding will not be impacted much by this. The maximum Pell Grant will still be $7,395 per academic year, the same as the 2025-2026 year. However, the new maximum SAI eligible to receive a Pell Grant is now 14,790, and any student with a higher number will not be eligible. Learn more about Pell Grant changes and eligibility.

Though the Parent PLUS loan program will still be available for parents to cover the remaining funding gap, there will be major changes to yearly and lifetime limits. Parents will now only be able to borrow up to $20,000 per academic year, compared to up to the student's cost of attendance previously. Additionally, now parents may only borrow up to $65,000 lifetime for their child, which is a major difference from the previously uncapped borrowing eligibility.

If you are an existing Parent PLUS Loan borrower, you may continue to borrow under your previous loan limits for the shorter of the following two periods: the remainder of your student's current program or three years. However, this eligibility is contingent upon your student remaining continuously enrolled in their current program. If your student takes a leave of absence or does not complete a term, you will be reclassified as a new borrower and will then be subject to the updated loan limits.

Yes, OBBBA does not change or impact Federal Work-Study awards or eligibility requirements. Work-Study eligibility will still be based on the financial need of the student, based on their Student Aid Index (FAFSA SAI).

No, unfortunately, at this time, the government has not given any guidance on whether more aid can be had if the aggregate limit has been reached. We recommend that students who face this look into potential private loan options and reach out to our office with any questions.

Under OBBBA, the Graduate PLUS Loan program will be discontinued and phased out. Starting in the 2026-2027 academic year, new graduate and professional students will not be eligible to apply for this funding. If you are currently borrowing Direct Loans and remain continuously enrolled in your program, you can borrow Grad PLUS after July 1, 2026. A leave of absence, academic pause, or enrolling in another program makes you a new borrower subject to new loan limits.

Students who wish to explore alternative loan options can consider the private loan sector. Our university has compiled a Preferred Lenders List to assist students in finding private loan funding. Even though we have a preferred lender's list, that doesn’t stop a student from looking at other private loan options not listed on our website. Please see our ELMSelect Tool to begin reviewing these potential lenders today.

No, at this point, we have not seen any changes to the Unsubsidized Loan. Graduate students will still have the ability to accept up to $20,500 per academic year if they’re full-time. However, students not enrolled full-time may have their borrowing eligibility for that semester prorated.