2026-27 Changes to Federal Loans

Significant changes to federal financial aid programs were recently signed into law and are effective beginning July 1, 2026.  Below is a summary:

• Beginning with the 2026-2027 academic year, Federal Direct Subsidized, Unsubsidized, and Graduate PLUS Loans are required to be reduced for students enrolled less than full-time. Loans will be reduced proportionally based upon enrolled credit hours. Students must still be enrolled at least half-time to be eligible for a disbursement. 
• Effective July 1, 2026, first-time Parent PLUS Loan borrowers have new annual and aggregate (lifetime) loan limits.  Parent PLUS Loans are available as an option to parents of dependent undergraduate students. Careful consideration should be given to how much PLUS loan a parent plans to borrow each year to avoid exhausting PLUS loan eligibility prior to degree completion.  
• As of July 1, 2026, the Graduate PLUS Loan program for graduate and professional students will be eliminated for all new borrowers.  
• Graduate student borrowers have new aggregate (lifetime) loan limits, as well. The aggregate borrowing amount of Federal Direct Unsubsidized Loans is $100,000 per graduate student.

Legacy provisions will be in effect per federal regulations. Visit our 2026-27 Federal Student Loan Changes website for full details.

UIS Financial Assistance is tracking changes and will update students as new information or official guidance from the Department of Education becomes available. These changes are a result of HR 1 – Public Law No. 119–21, OBBBA (One Big Beautiful Bill Act). 

This information reflects the most current guidance available as of April 3, 2026, and is subject to change as official guidance is released by the Department of Education.  

Please visit Federal Student Aid (FSA) for the latest updates.