Changes to Federal Student Aid
The Office of Financial Aid is here to guide you through changes to federal aid
The One Big Beautiful Bill Act (OBBBA), a federal budget reconciliation package signed into law on July 4, 2025, includes several significant changes to federal student aid that will take effect on July 1, 2026. Among these changes are new limits for all federal student loans.
There are no changes to student aid for the Fall 2025 and Spring 2026 terms.
**Please note, the Department of Education is continuing its negotiated rule-making process. As the Department releases further guidance, this page will be updated**
This page was last updated 1/13/26
Undergraduate Students
Topic | Changes | Legacy Provisions | Takeaways | Effective Date |
|---|---|---|---|---|
| Undergraduate loan limits and caps | Current federal student loan limits are remaining the same. The law creates a borrowing cap of $257,000 of total federal borrowing. This includes an undergraduate cap of $57,000. | If you have already borrowed a Federal Direct Loan before July 1st 2026, you will be able to borrow under the current loan limits for 3 academic years or until you finish your degree (whichever is shorter). | This will mainly limit students eligibility for graduate loans if they have already previously borrowed an undergraduate loan, since undergraduate loans are counted against the same lending cap as graduate loans. If you borrowed under the current rules, you have 3 years of borrowing under the same rules. | July 1st, 2026 |
| Parent PLUS loans | New Parent PLUS loans will be capped at a maximum of $20,000 per student per year. Previously Parent PLUS loans could be taken for the full cost of attendance. There is also an aggregate limit of $65,000 of Parent Plus borrowing per student. | Borrowers who have borrowed a Parent PLUS loan will be able to borrow under the current unlimited limits for either three academic years or until the student completes their degree program (whichever is shorter) | Access to additional lending through the federal government is more limited for students who have not already taken advantage of the Parent PLUS program. Current borrowers can borrow under current limits for up to three years. | July 1st, 2026 |
Graduate Students
Topic | Changes | Legacy Provisions | Takeaways | Effective Date |
|---|---|---|---|---|
| Graduate PLUS Loans | The Graduate PLUS loan program is eliminated. | Students that have already borrowed a Graduate PLUS loan before July 1st, 2026 may continue to do so for 3 additional years or until they earn their degree for the program they are currently completing | Students that have previously borrowed a Graduate PLUS loan will be able to continue to borrow under the current program for up to 3 years. Students who have not taken a Graduate PLUS loan before July 1st, 2026 will not have access to the Graduate PLUS loan program. | July 1st 2026 |
| Graduate Federal Direct Unsubsidized loans | Graduate students now have a lending cap of $20,500 per year Graduate students also now have an aggregate limit of $100,000 of total federal borrowing.
| For students that have already borrowed a graduate unsubsidized loan before July 1st 2026 while enrolled in a program of study, the current graduate limits will continue to apply for 3 years or the remainder of your expected time to receive your credential, whichever is less. | Graduate students will have lower access to federal direct loans. Students that have already borrowed a Federal Direct Loan while enrolled in a program will be able to borrow under current limits for up to 3 years. | July 1st 2026 |
A note on legacy provisions: Legacy provisions only apply if a student is in the same program of study. If, for example, you were enrolled in a Master of Arts program before July 1st, 2026, but then switched to a Master of Sciences program, or transferred to a different school, you would no longer be eligible for the legacy provisions under the law.
Looking for other sources of loan funding?
In addition to federal direct loans, parents of undergraduate students can apply for a Federal Direct Parent PLUS loan
Undergraduate and graduate students can also apply for private alternative loans, although they should consider applying for federal and institutional aid first.
Please note, the Department of Education is continuing its negotiated rule-making process. As the Department releases further guidance, this page will be updated.
This page was last updated 1/13/26