undergraduate and graduate loans
Federal loans borrowed in the student's name which must be repaid after graduation or if they drop below less than half-time enrollment status or leave school.
What's Changing on July 1, 2026
- The Grad PLUS Loan program will be discontinued and won't be available for new borrowers.
- Legacy Provision: Students with a Grad PLUS Loan disbursed before July 1, 2026 may continue borrowing under existing Grad PLUS Loan rules for up to 3 more academic years or until their program ends - whichever comes first.
- Borrowing limits will now be capped as follows:
- Undergraduate: no changes
- Graduate (unsubsidized only): $20,500 per year, up to $100,000 lifetime
- Professional degrees (e.g., law and pharmacy): $50,000 per year, up to $200,000 lifetime (includes any undergraduate or graduate borrowing)
- Total lifetime borrowing limit for all federal student loans (except Parent PLUS): $257,000
- Enrollment Status: If enrolled less than full-time, loan eligibility (annual amount) will be prorated (reduced).
What This Means for You
- Current Grad PLUS borrowers: If your loan is disbursed before July 1, 2026 (for academic year 2025-2026), you may keep borrowing under the old terms for up to 3 more academic years or until your program ends, whichever comes first.
- Prospective graduate students: Grad PLUS Loans won't be available starting with the 2026-2027 academic year. You'll need to rely on unsubsidized Direct Loans (within the new caps), scholarships, savings, or private loans.
- All graduate students: Connect with our office for one-on-one guidance on how these changes may affect you.
Federal loans borrowed by parents to help pay for a child's undergraduate education. Parents - not students - are responsible for repayment.
What's Changing on July 1, 2026
- Parents may borrow up to $20,000 per year, with a $65,000 lifetime maximum per student.
- Legacy Provision: Parents who borrowed before July 1, 2026 may continue borrowing under existing Parent PLUS Loan rules for up to 3 more academic years or the student completes their program ends - whichever comes first.
- Enrollment Status: PLUS Loan eligibility is tied to the student's cost of attendance and enrollment level. If a student is enrolled less than full-time, the PLUS loan amount borrowed will be prorated (reduced).
What This Means for You
- Current Parent PLUS borrowers: You may still borrow under the old rules for the length of the Legacy Provision (see above).
- New Parent PLUS borrowers: Be aware of the new caps listed above. Families may need to plan for additional funding sources, including private loans.
Federal Pell Grants help low-income undergraduate students pay for their education. Grants do not have to be repaid.
What's Changing on July 1, 2026
Pell Grants may be used for short-term workforce training programs (8-15 weeks), not just traditional degrees.
What This Means for You
If you're interested in a career certificate or training program, Pell Grants may now help cover the cost if you're eligible. You must complete the FAFSA each year to determine eligibility.
Repayment Plans for Student Borrowers
After a student graduates, drops below half-time enrollment status, or leaves school, they are required to repay their federal student loans under a chosen repayment plan.
We encourage any borrower who is currently in repayment of their federal loans to contact their loan servicer and discuss how these changes may impact their situation. This website provides a high-level overview, and there may be other details a current borrower in repayment will want to consider before deciding how to proceed.
What's Changing on July 1, 2026
- Some existing repayment plans will end (ICR, PAYE, and SAVE).
- A new income based repayment plan (Repayment Assistance Plan, or RAP) will be created. Payments under this plan will
be determined based upon several factors:
- payments may be as low as $10/month,
- adjusted for dependents,
- and possibly forgiven after 30 years of payments.
- A new standard repayment plan will be created. Payments under this plan will have 4 fixed terms of 10, 15, 20, or 25 years (based on the amount borrowed).
What This Means for You
- Current Borrowers:
- If no new loans are made on or after July 1, 2026, you are eligible to enroll in the current Standard, Graduated, Extended, or income based (IBR) repayment plan, or you may opt into the new RAP.
- If you are currently enrolled in ICR, PAYE, or SAVE, you must transition to a different repayment plan by July 1, 2028, (either current income based repayment plan, current standard plan, or RAP). If no selection is made, you will be moved to RAP automatically.
- It's important to note that all loans must be repaid under the same plan. So, borrowers with loans made before July 1, 2026, who take out additional loans on or after July 1, 2026, will only have RAP and the new standard plan to choose from.
- New Borrowers: For loans made on or after July 1, 2026, there will be two repayment plan options - the new standard repayment plan or RAP. If no selection is made, you will be assigned to the new standards payment plan.
Repayment Plans for Parent Borrowers
Parent borrowers may choose to defer payments until six months after their student graduates, leaves school, or drops below half-time enrollment status. Otherwise, payments begin once the loan is fully disbursed (paid out) unless you request a deferment.
We encourage any borrower who is currently in repayment of their federal loans to contact their loan servicer and discuss how these changes may impact their situation. This website provides a high-level overview, and there may be other details a current borrower in repayment will want to consider before deciding how to proceed.
What's Changing on July 1, 2026
- A new standard repayment plan will be created. Payments under this plan will have 4 fixed terms of 10, 15, 20, or 25 years (based on the amount borrowed).
What This Means for You
- Current Borrowers:
- If no new loans are made on or after July 1, 2026, you are eligible to enroll in the current Standard, Graduated, Extended, or income based (IBR) repayment plan.
- If you borrowed prior to July 1, 2026, AND subsequently borrow after July 1, 2026, repayment for all loans must be under the same payment plan which is the new standard payment plan.
- New Borrowers: For loans made on or after July 1, 2026, they can be repaid using only the new standard plan to choose from.
The OBBBA also included some changes about consolidation loans, deferment options, and forbearance that we will provide in the future as ED clarifies details. At this time, those will not be effective until July 1, 2027.
Additional Provisions of OBBBA
FAFSA Asset Exemptions: Starting with the FAFSA for aid year 2026-2027, the exemptions for assets of a family farm and a family-owned small business in the SAI calculation will be reinstated. Additionally, those asset exemptions will be expanded to include family-owned commercial fisheries.
Foreign Income for Pell Eligibility: Starting with the FAFSA for aid year 2026-2027, foreign income is required to be included in the Adjusted Gross Income (AGI) used to calculate Pell Grant eligibility.
Full Cost of Attendance Scholarships/Grants: Effective July 1, 2026, students who receive grants or scholarships from non-federal sources covering their entire Cost of Attendance are ineligible to receive a Pell Grant, even if otherwise eligible for the program.
High SAI and Pell Grant: Effective July 1, 2026, students will not be eligible to receive a Pell Grant if their SAI exceeds twice the maximum Pell Grant award which is currently $7,395.
