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Pell Grants

• Extra Funding: The government is adding $10 billion to keep Pell Grants fully funded.

Federal Student Loans

Changes effective July 1, 2026:

• Graduate PLUS Loans – going away for new borrowers.
• Parent PLUS Loans – capped at $20,000 per year and $65,000 total per child.
• Grad/Professional Loans – annual caps of $20,500 (grad) or $50,000 (professional); total caps of $100,000 and $200,000.
• Overall Lifetime Limit – $257,500 across all federal student loans (Parent PLUS not included in this total).
• Schools Can Set Lower Limits – colleges can choose to lower borrowing limits for entire programs.
• Loan Proration – loans will match your enrollment level (full-time vs. part-time).

Legacy Borrowing Provisions

Some borrowers may qualify for legacy status, which allows continued borrowing under existing federal loan rules even after new limits take effect on July 1, 2026.

• Graduate and Professional Students:
  • If a student receives any Federal Direct Loan before July 1, 2026 while enrolled in their current graduate or professional program, they may continue to borrow under current rules (including access to Graduate PLUS loans) for up to three (3) additional academic years or until the program is completed, whichever comes first.
• Parent PLUS Loans:
  • If a parent borrower receives a Parent PLUS loan before July 1, 2026 while their dependent student is enrolled, that parent may continue borrowing under current Parent PLUS rules for up to three additional academic years or until the student completes their program, whichever comes first.

Legacy status is program‑specific. Changing programs (including most major changes) or starting a new program after July 1, 2026 will subject borrowers to the new federal loan limits.

Loan Repayment

For new loans after July 1, 2026:

• Only two repayment options:
  1. New Standard Plan – fixed payments over 10, 15, 20, or 25 years (based on loan size).
  2. New Income-Based Repayment Plan (RAP) – payment is 1–10% of income (based on AGI), with discounts for dependents and no interest piling up faster than you pay.
• Current borrowers can keep their old plans for now, but some plans will be phased out by 2028.
• Parent PLUS loans taken after July 1, 2026, must use the Standard Plan.

FAFSA & Eligibility

Starting with the 2026–27 school year:

• Family Farms, Small Businesses and Fisheries – assets won’t count against you in aid calculations.
• Foreign Income – must be counted when figuring Pell eligibility.
• Full Scholarships – if outside scholarships fully cover your cost of attendance, you can’t also get a Pell Grant.
• High Student Aid Index (SAI) – no Pell Grant if your SAI is more than double the max Pell award.

School Accountability

From July 1, 2026:

• If a program’s graduates earn less than people with only a high school diploma (or bachelor’s degree for grad programs) two out of three years, that program can lose access to federal loans.
• Schools must warn students if their program is failing this “earnings test.”

Other Changes

• Borrower Defense & Closed School Discharge – stricter rules delayed until 2035.
• Private College Endowment Tax – higher rates for very wealthy schools (based on per-student endowment).
• Deferment & Forbearance – starting in 2027, fewer options and shorter time limits.

The Bottom Line

If you’ll be in college or grad school in 2026 or later, these changes will affect how much you can borrow, how you repay, and in some cases, whether your program qualifies for aid. Parents of future students should pay close attention to the new loan caps and repayment rules.

Details are still being finalized around these changes, and the N�鶹ԭ�� Financial Aid Office will update this page as more information becomes available. If you have any questions, please contact the Financial Aid Office.