Federal Loan Changes for 2026-2027

• There are no changes to undergraduate student loan limits, and undergraduate student loans do not count toward the new lifetime graduate and professional limits.
• Starting July 1, 2026 for new borrowers, Parent PLUS loans will be capped at $20,000 per student per year, with a $65,000 lifetime limit per dependent student.
• Existing Parent PLUS borrowers who have borrowed for their students before July 1, 2026, can continue with the current limits (up to the cost of attendance, minus other financial aid) for three more years or until the student’s program ends.  The undergraduate student must have been continuously enrolled in a program of study
• Changing majors does not affect Parent PLUS Loan eligibility. An undergraduate student who changes majors within the same degree or certificate is considered enrolled in the same program of study.

• Professional programs:
  • Up to $50,000 per year, and a $200,000 aggregate (“lifetime”) borrowing limit which does not include amounts borrowed as an undergraduate.
• Other graduate programs:
  • Up to $20,500 per year, and a $100,000 aggregate (“lifetime”) borrowing limit which does not include amounts borrowed as an undergraduate.
• New borrowers who are both graduate and professional students at some point in their educational careers may only borrow up to $200,000 in total for their graduate and professional programs.
• Definitions of “professional” vs. “graduate” programs are defined by federal regulation (see below).
• Borrowers who were enrolled in a program of study and have a Federal Direct Loan made prior to July 1, 2026 may be eligible for the prior Direct Unsubsidized Loan annual and aggregate amounts ($20,500/year and $138,500 aggregate) until completing their current program or for three additional years, whichever is less.

• Graduate PLUS loans will be phased out beginning on July 1, 2026; as of that date, loans will not be available to new borrowers.
• There will be some continuing eligibility for Graduate PLUS borrowers as they complete their current programs.
• If a borrower has a Federal Loan made before July 1, 2026, while enrolled in a program of study, the borrower can continue to borrow both the Direct Unsubsidized and Graduate PLUS loans  for three academic years or the remainder of their expected time to credential*, whichever is less.
  • If a student who meets the provisions above changes their program of study after July 1, 2026, they will no longer be eligible for the Graduate PLUS Loan for that new program.
  • Professional students who meet the provisions to use the Graduate PLUS Loan in 2026-2027 and beyond are not eligible for the $50,000 annual Direct Unsubsidized Loan limit and will be eligible for the prior $20,500 annual limit.

*Expected time to credential is the remaining number of semesters/years which a student will need to complete their program on time.  For example, if a student enrolled in a four-year (eight-semester) program has attended for four semesters, their expected time to credential is the remaining two years/four semesters.  Students who remain enrolled past their expected time to credential will lose their eligibility for direct loan legacy provisions.

Please note that transfer credits and high school coursework being accepted toward your degree requirements may impact your expected time to credential.

• Professional students are defined as those enrolled in the following degree programs: Pharmacy (Pharm.D.), Dentistry (D.D.S. or D.M.D.), Veterinary Medicine (D.V.M.), Chiropractic (D.C. or D.C.M.), Law (L.L.B. or J.D.), Medicine (M.D.), Optometry (O.D.), Osteopathic Medicine (D.O.), Podiatry (D.P.M., D.P., or Pod.D.), Clinical Psychology (Psy.D. or Ph.D.), and Theology (M.Div., or M.H.L.)
• Students who are enrolled in a program of study other than those listed above are considered graduate students (not professional students) for financial aid purposes and will be subject to the graduate student loan limits noted in the section above.

• The bill includes a provision to prorate undergraduate and graduate loan amounts based on enrollment, known as the Schedule of Reductions or SOR.
• Students enrolled less than full-time will only be eligible for a portion of the annual loan limit.
  • For most URochester programs,  full-time enrollment is defined as taking a minimum of 12 degree-required credits per semester for undergraduate students, and a minimum of 9 degree-required credits per semester for graduate/professional students.  Full-time enrollment for graduate students in the Simon School of Business is defined as taking a minimum of 10.5 degree-required credits per semester.
• Students enrolled less than half-time (taking less than 6 degree-required credits in a given semester) are not eligible for federal student loans, as was the case before the passage of OB3.
• The Schedule of Reductions applies to both current borrowers who are enrolled in their program of study and have a Direct Loan made before July 1, 2026, and new borrowers on or after July 1, 2026.
• Please review this page for more information and resources regarding how the Schedule of Reductions will impact federal loan eligibility.

• For borrowers whose loans were all disbursed on or after July 1, 2026, the bill eliminates the income-driven repayment plans (ICR, PAYE, and SAVE) and replaces them with a new Repayment Assistance Program (RAP).
• Students who borrowed loans before July 1, 2026, and borrow again after July 1, 2026, are limited to the new RAP or the standard plans. All loans must be paid under the same repayment plan.
• RAP borrowers will not be mandated to repay using a 30-year plan. They can switch to a standard plan, which ranges from 10 to 25 years.
• Borrowers with no new loans made on or after July 1, 2026, are eligible to enroll in the current Standard Income Based (IBR), Graduated, and Extended repayment plans, and could also opt in to the new RAP.
• Borrowers enrolled in ICR, PAYE, or SAVE plans must transition to a new repayment plan by July 1, 2028. If no selection is made by that date, they will be enrolled in RAP.