Part-Time Loan Proration
- Beginning Fall 2026: The One Big Beautiful Bill Act requires federal student loans
to be prorated based on enrollment level, meaning part-time students (fewer than 12
credits for undergraduate students and fewer than 9 credits for graduate students)
will have their annual loan amounts reduced in direct proportion to their enrollment
status. This applies to Subsidized, Unsubsidized, and Graduate PLUS loans (legacy
borrowers).
Parent Borrowing Limits
- Combined parent borrowing is limited to:
• $20,000 per year per dependent student
• $65,000 aggregate limit per dependent student
- The aggregate limit applies regardless of amounts forgiven, repaid, canceled, or discharged
Legacy Provision:
If a student or parent borrower has a Federal Direct Loan issued before July 1, 2026, parents may continue borrowing under current loan limits for up to 3 academic years,
or the remainder of the student’s expected time to credential, whichever is less.
Graduate PLUS Loan Changes
- New graduate students will no longer be eligible for Federal Direct Graduate PLUS
Loans starting July 1, 2026
Legacy Provision:
Graduate students who received a Grad PLUS Loan or Unsubsidized Loan before July 1, 2026 and were enrolled in a graduate program during the 2025–2026 academic year (or earlier) may continue borrowing Grad PLUS Loans for the length of their published program,
or until completion of their current program, whichever comes first.
Students will lose Legacy Provision if they:
• Change degree programs
• Withdraw completely from classes; take a leave of absence
• Skip a semester (excluding summer)
• Exceed the published program length (for example, taking 3 years to complete a
2-year program).
Additional federal guidance may modify implementation details. Students should monitor
updates from the Financial Aid Office and the U.S. Department of Education.
