Changes to Federal Financial Aid

Effective July 1, 2026, the One Big Beautiful Bill enacts a $257,500 lifetime borrowing limit on all federal student loans, total. Graduate PLUS loans will be included in the new $257,500 lifetime borrowing limit established through the One Big Beautiful Bill Act. This does not include Parent PLUS loans, which are borrowed by parents on their student’s behalf.

• Limited Exception

  Students are not subject to the new lifetime loan limit (for up to three academic years or the remainder of their expected time to credential, whichever is less) 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 for that same program before July 1, 2026.

   

Parent PLUS Loan

All parents (combined) may borrow $20,000 per year per dependent student and a $65,000 aggregate limit per dependent student (without regard to amounts forgiven, repaid, or discharged). 

• Limited Exception

  Parents are not subject to the new PLUS loan limits (for up to three academic years or the remainder of the student's expected time to credential, whichever is less) if the student remains continuously enrolled in the same program of study at the same institution as they were enrolled as of June 30, 2026 and either the parent had a Parent PLUS Loan disbursed for that same program before July 1, 2026, or the student had a Direct Loan (subsidized or unsubsidized) disbursed for that same program before July 1, 2026. 

Beginning July 1, 2026, loan limits will be prorated depending on enrollment level, similar to grant funding. This means students enrolled less than full time will only be able to borrow loan amounts in direct proportion to their credit load, with a minimum half-time enrollment requirement.

• Students thinking of enrolling less than full-time or dropping a class should talk to their financial aid counselor first to understand the implications.

Effective July 1, 2026, the Graduate PLUS Loan Program has been discontinued entirely for all new borrowers. Graduate PLUS Loans currently allow graduate students to borrow up to the Cost of Attendance for their program.

The following loan limits apply to all student borrowers who are not already active borrowers under the federal student loan program:

• Graduate Students: $20,500 annual; $100,000 aggregate
• Professional Students: $50,000 annual: $200,000 aggregate
• *Graduate/Professional combined total: $200,000

*The individual graduate and professional limits do not reset when you begin a new degree or program and there is a $200,000 total aggregate limit. For example, a student who borrows the total aggregate $120,500 to complete their graduate degree will only have $79,500 left in eligibility should they later decide to enroll in a professional program.

For more information visit: 2026-27 & Beyond Graduate / Professional Student Loan Borrowing Limits

Students in the following programs are considered professional students for purposes of federal student loan limits: 

⭐- offered by La Sierra University

Beginning July 1, 2026, Parent PLUS loans will be capped at $20,000 per year with a $65,000 aggregate limit. Previously, Parent PLUS Loans had no cap and could be taken out for whatever amount was needed to get the student up to Cost of Attendance.

• These limits are per dependent student, meaning parents with multiple dependent students can take out these limits in total for each student.
• The number of parent borrowers does not change the limits, as they are tied to the student. So if a student has two parents who wish to borrow on their behalf, no more than $20,000 per year and $65,000 total may be taken out.

• Limited Exception

  If a student has received a Parent PLUS Loan disbursement before July 1, 2026 while enrolled in a qualifying program, the parent borrower may continue borrowing Parent PLUS Loans under previous loan limits for three academic years or until the student completes their program, whichever is sooner.

  Please note that a student can change majors and they will still remain eligible for the limited exception. The student changing credential level will cause them to lose eligibility for the limited exception.

Limited exceptions exist for many of these loan changes. However, transferring schools, switching majors, or having a break in enrollment may affect your ability to be included in these exception limits. Please reach out to our office to discuss the implications of any adjustments to your academic career.

Undergraduate Students and Parent PLUS Borrowers

You qualify as an eligible undergraduate student under the limited exception to allow your parent to receive a Direct PLUS Loan for parents if you

• were enrolled in a program of study at an institution as of June 30, 2026;
• received at least one Direct Loan, or your parent received a Direct PLUS Loan on your behalf, for such program of study, before July 1, 2026; and
• are enrolled at the same institution and are seeking the same credential after July 1, 2026, and have not ceased to be enrolled seeking the same credential at the same institution at any point on or after July 1, 2026. 

“Credential” refers to the degree you’re seeking, for example, a bachelor’s or associate degree. You can’t change credential level and maintain eligibility for the exception, but you can change majors within your credential.

Graduate and Professional Students
You qualify as an eligible graduate or professional student under the limited exception only if you

• were enrolled in a program of study at an institution as of June 30, 2026;
• received at least one Direct Loan for such program of study prior to July 1, 2026; and
• are currently enrolled at the same institution in the same program of study and have not ceased to be enrolled in the same program at the same institution at any point on or after July 1, 2026. An approved leave of absence is not considered to be a break in enrollment.

For scenarios illustrating the loan limit and loan repayment provisions for undergraduate, graduate, and professional student borrowers, visit StudentAid.gov