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A new lifetime borrowing limit of $257,500 will apply to most federal student loans (excluding Parent PLUS Loans). Most undergraduate students will not reach this limit, but it may affect some students pursuing multiple degrees or extended programs. 

You may be exempt to the new lifetime loan limit for up to three academic years or until you graduate, whichever is less, if you meet the following criteria: 

• You remain enrolled in the same program at the same school without any breaks, and 

• You have already received a Direct Loan for that same program before July 1, 2026 

Students in some academic programs may be subject to lower federal loan borrowing limits if their institution chooses to implement program-specific limits.  

Students who are enrolled less than full-time will have their loan eligibility reduced proportionally to their number of credit hours.  

Students must be enrolled full-time for both fall and spring semesters to receive their original maximum annual loan limit. Full time students must receive the following credit hours: 

• Undergraduate students: 12 credit hours per semester (24 credit hours per year) 

• Graduate students: 8 credit hours per semester (16 credit hours per year) 

Students and families will now have only two repayment plan options:  

• Tiered Standard Repayment: fixed monthly payments with repayment term lengths ranging from 10–25 years, depending on the amount borrowed 

• Repayment Assistance Plan (RAP): monthly payments based on income with loan forgiveness after 30 years of repayment; qualifies for Public Service Loan Forgiveness 

Existing income-contingent repayment plans will be sunset in 2028. Borrowers must switch to another eligible plan before July 1, 2028, or they will be automatically moved into the Repayment Assistance Plan (RAP).  

New Limits: Beginning July 1, 2026, parents can borrow up to $20,000 per year and $65,000 in total per dependent student. Please note that the new aggregate limit of $65,000 means that borrowing the annual maximum for a four-year undergraduate program will cause parents to reach the aggregate limit before the student completes their degree, leaving them without further access to the Parent PLUS Loan.  

Repayment Plan Changes: The only repayment plan option available for loans taken on or after July 1, 2026, will be a new tiered standard repayment plan, which offers a fixed monthly payment over 10 to 25 years, based on the outstanding balance of the loan(s). The new tiered standard repayment plan does NOT count as a qualifying repayment plan for Public Service Loan Forgiveness (PSLF) purposes. 

For more detailed information, please view . 

New Limits: New federal borrowing limits cap the Parent PLUS Loan at $20,000 per year and $65,000 in total, but the law allows for a three-year exception to new loan limits for currently enrolled students: 

• The student must remain continuously enrolled in the same program of study at the same institution as they were enrolled as of June 30, 2026, AND 
• The parent borrower must have had a Parent PLUS Loan disbursed for that same program before July 1, 2026, OR the student must have had a Direct Loan (subsidized or unsubsidized) disbursed for that same program before July 1, 2026 
• NOTE: After three academic years, or earlier if the student does not remain continuously enrolled, Parent PLUS Loan borrowers become subject to the new loan limits. 

New Repayment Plan Options

 For more detailed information, please view . 

*Only eligible for ICR if consolidated into Direct Consolidation Loan prior to July 1, 2026. 
**Only the 10-year standard plan and ICR are eligible for forgiveness/cancellation options. 
***Only eligible for IBR if consolidated into Direct Consolidation Loan prior to July 1, 2026, and made at least one payment under ICR prior to July 1, 2028 

Current Pell Grant recipients who fall under the categories listed below may lose eligibility in the 2026–2027 school year: 

• Students with a Student Aid Index (SAI) equal to or greater than 14,790 (twice the maximum Pell Grant) 
• Students who receive grants or scholarships from non-federal sources (institutional, state, or private) that cover their entire cost of attendance (COA) 
• Some students and families with foreign income; foreign income is now included in the adjusted gross income (AGI) used to calculate Pell Grant eligibility on the FAFSA 

New Pell Grant eligibility criteria apply to all students, regardless of it they received Pell Grants in the previous years. If you are no longer eligible for the Pell Grant and require additional funds, please contact the financial aid office for other financing options. 

The new legislation reinstates the exemptions of family farm and family-owned small business assets from the SAI calculation and expands asset exemptions to include family-owned commercial fisheries. 

Starting July 1, 2026, the Graduate PLUS loan program will be eliminated unless students qualify for a limited exception.  

Limited Exception: Students may qualify for a limited exception through their time to completion, for a maximum of three years if: 

• They remain continuously enrolled in the same program of study at the same institution as they were enrolled as of June 30, 2026, and 
• They had a Direct Loan disbursed (Direct Subsidized or Unsubsidized or Graduate PLUS) for that same program before July 1, 2026 

If students enroll part time in 2026-2027 or future years, their federal Direct Unsubsidized and/or Graduate PLUS Loans (if they qualify to borrow a Graduate PLUS under the limited exception described above) must be prorated in accordance with changes to the law. 

For more detailed information, please view .

The annual Direct Unsubsidized Loan limit remains unchanged at $20,500. However, there is a new $100,000 cap on the amount of Direct Subsidized/Unsubsidized Loans* students can borrow in total for a graduate degree program and a new lifetime federal loan limit of $257,500 for all Federal Direct student loans (excluding Parent PLUS loans) borrowed for all levels of study. 

Limited Exception: Students may qualify for a limited exception through their time to completion, for a maximum of three years if: 

• They remain continuously enrolled in the same program of study at the same institution as they were enrolled as of June 30, 2026, and 
• They had a Direct Loan disbursed (Direct Subsidized or Unsubsidized or Graduate PLUS) for that same program before July 1, 2026 

If students enroll part-time in 2026-2027 or future years, their federal Direct Unsubsidized and/or Graduate PLUS Loans (if they qualify to borrow a Graduate PLUS under the limited exception described above) must be prorated in accordance with changes to the law. 

For more detailed information, please view . 

*Prior to July 1, 2012, graduate and professional students were eligible to receive subsidized loans. The new aggregate limit includes all subsidized and unsubsidized loans borrowed at the graduate or professional level. 

Students who borrow a new federal Direct Loan on or after July 1, 2026: 
These students are eligible for only two repayment plans: 

• Tiered Standard Repayment: fixed monthly payments with repayment term lengths ranging from 10–25 years, depending on the amount borrowed 
• Repayment Assistance Plan (RAP): monthly payments based on income with loan forgiveness after 30 years of repayment; qualifies for Public Service Loan Forgiveness 

Students who do NOT borrow a new federal Direct Loan on or after July 1, 2026: 
These students may continue to access current repayment options, including: 

• Standard (10-year), Graduated, or Extended Repayment 
• Income-Based Repayment (IBR) 
• Pay As You Earn (PAYE)* 
• Income-Contingent Repayment (ICR)* 

All federal loans must be repaid using the same repayment plan. Students with loans borrowed before July 1, 2026, who take out new loans on or after that date will have to repay their loans under the Tiered Standard Repayment or RAP options described above. 

*PAYE and ICR plans will sunset effective July 1, 2028. Borrowers who enroll in PAYE or ICR must switch to any of the other eligible plans listed before July 1, 2028, or they will be automatically moved into RAP. Eligible borrowers must enroll in PAYE before July 1, 2027. Learn more . 

For more detailed information about loan repayment plan changes, please view .