Information for Parents and Students
Starting on July 1, 2026, the Department of Education made changes to different federal loan programs. Below are different categories and how each group has been affected.
Please note: We are still receiving updated guidance from the Department of Education. As we get new information, we will be updating this page.
Legacy Provisions:
As part of the regulation changes, any student or parent who was a student loan borrower prior to July 1, 2026, will be considered a legacy borrower. This means that these changes will not affect you. The legacy borrower status is only valid for three years maximum and you must be continually enrolled to maintain the legacy borrower status. Once you graduate, take a semester off or cease enrollment, then you will lose your legacy borrower status.
Undergraduate Students:
Dependent & Independent Students: There are no changes to the subsidized and unsubsidized annual loan limits or aggregate loan limits. https://studentaid.gov/understand-aid/types/loans/subsidized-unsubsidized
Parents of Undergraduate Students:
One major change is how much parents can borrow for their student. Under the new regulations, the annual and aggregate loan limits have changed. Please see the below chart:
| Annual Limit: | Aggregate Limit: | |
|---|---|---|
| Legacy Borrowers: | Up to Cost of Attendance | No limit |
| Non-Legacy Borrowers: | Up to Cost of Attendance or $20,000, whichever is lower | $65,000 |
Note: The limits noted above are calculated per student and not per parent.
Guidance from the Financial Aid Office for Non-Legacy families: Based on the above information, you will need to watch the amount of Parent PLUS loans you borrow each year. Here are three different scenarios in which you could budget your Parent PLUS loan off of:
Graduate Students: The Federal Direct Graduate PLUS Loan is being eliminated beginning July 1, 2026. If a graduate student borrowed a federal student loan prior to July 1, 2026, they may still qualify for a Federal Direct Graduate PLUS Loan under the legacy borrower provisions.
The Federal Direct Unsubsidized Graduate Loans have not changed. A graduate student may borrow $20,500 annually with a graduate aggregate loan limit of up to $100,000.
Other Federal Loan Changes
Aggregate Loan Limits – For all students who have not borrowed any student loans before July 1, 2026, the Department of Education has changed the borrowing limit on all federal student loans, excluding parent PLUS loans borrowed on a student’s behalf. Under the new rules, a student can borrow up to $57,500 for their undergraduate loans and up to $257,500 for all their federal student loans.
Proration of Loans – In addition, annual federal loan amounts (subsidized and unsubsidized direct loans) will be adjusted based on a student’s actual enrollment level if they are enrolled less than full time. This applies to both undergraduate and graduate/professional students and may result in reduced federal loan eligibility for the academic year, even after the last day to drop/add class period.
