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Kamala Khan is an undergraduate student who begins the Fall 2026 semester enrolled in 12 credit hours (full-time).  As a first-year, dependent student (as determined by the Free Application for Federal Student Aid), Kamala could qualify for up to an annual maximum of $3,500 in Direct Subsidized Loan and $2,000 in Direct Unsubsidized Loan.  Shortly after her the Fall portions of her loans disburse, Kamala drops to 6 credit hours.  She then enrolls in 12 credit hours for the Spring semester.

• Minimum number of credit hours to be considered full-time for the full academic year (Fall and Spring) = 24 credit hours (12 credit hours per semester)
• Kamala begins the Fall semester in 12 credit hours
  • 12 / 24 = 50%
    • Direct Subsidized Loan eligibility for Fall = 50% x $3,500 = $1,750
    • Direct Unsubsidized Loan eligibility for Fall = 50% x $2,000 = $1,000
• After these Fall portions disburse, Kamala drops to 6 credit hours and later enrolls in 12 credit hours for the Spring semester
• Total Annualized Enrollment for Kamala (Fall and Spring) = 18 credit hours
• To determine the Spring semester loan disbursements, we must use the annualized enrollment and deduct the loan amounts disbursed in the Fall semester
  • Direct Subsidized Loan eligibility for the Spring = 18/24 = 75% x $3,500 = $2,625 - $1,750 (Fall disbursement) = $875
  • Direct Unsubsidized Loan eligibility for the Spring = 18/24 = 75% x $2,000 = $1,500 - $1,000 (Fall disbursement) = $500
• To summarize, based on Kamala’s enrollment, including enrollment changes –
  • Direct Subsidized Loan
    • Fall semester disbursement = $1,750
    • Spring semester disbursement = $875
  • Direct Unsubsidized Loan
    • Fall semester disbursement = $1,000
    • Spring semester disbursement = $500

Sam Wilson is a graduate student who begins the Fall 2026 semester enrolled in 6 credit hours (less than full-time).  As a graduate student, Sam could qualify for up to an annual maximum of $20,500 in Direct Unsubsidized Loan.  Sam completes all 6 credit hours in the Fall semester and decides to enroll in 9 credit hours for the Spring semester.

• Minimum number of credit hours to be considered full-time for the full academic year (Fall and Spring) = 18 credit hours (9 credit hours per semester)
• Sam begins the Fall semester in 6 credit hours
  • 6 / 18 = 33%
    • Direct Unsubsidized Loan eligibility for Fall = 33% x $20,500 = $6,765
• Sam enrolls in 9 credit hours for the Spring semester
• Total Annualized Enrollment for Sam (Fall and Spring) = 15 credit hours
• To determine the Spring semester loan disbursement, we must use the annualized enrollment and deduct the loan amount disbursed in the Fall semester
  • Direct Unsubsidized Loan eligibility for the Spring = 15/18 = 83% x $20,500 = $17,015 - $6,765 (Fall disbursement) = $10,250
• To summarize, based on Sam’s enrollment –
  • Direct Unsubsidized Loan
    • Fall semester disbursement = $6,765
    • Spring semester disbursement = $10,250

New federal loan borrowing limits cap the Parent PLUS Loan at $20,000 per year and $65,000 in total per student, but students enrolled during the 2025-2026 academic year or earlier may be eligible for a limited-time exemption from the new loan borrowing limits:

• For Parent PLUS Loan borrowers to be eligible for the limited-time exemption of the new loan borrowing limits:
  • The student must have remained continuously enrolled in the same program of study at the same institution (ÕýÆ·À¶µ¼º½) as of June 30, 2026, AND
  • Either:
    • A parent must have had a Parent PLUS Loan disbursed for their student's same program of study before July 1, 2026, OR
    • The student must have had a Direct Loan (subsidized or unsubsidized) disbursed for their same program of study before July 1, 2026.
  • If the above requirements are met, the new Parent PLUS Loan borrowing limits do not apply while the student is completing their program, for up to three academic years, provided the student remains continuously enrolled (i.e., does not withdraw or otherwise cease enrollment outside of scheduled breaks or non-required terms, such as summer).

It is not possible to opt-out of the limited-time exemption.

After three academic years, or earlier if the student withdraws or otherwise ceases enrollment from ÕýÆ·À¶µ¼º½ or completes their program of study, a Parent PLUS Loan borrower will fall under the new $20,000 annual and $65,000 aggregate loan limits per student.

The new loan limits for the Parent PLUS Loan program.

• $20,000 per dependent student, per year (annual limit).
• $65,000 per dependent student, in total (aggregate limit).

With the new aggregate loan limit of $65,000, should a parent choose to borrow the annual maximum loan amount of $20,000 each year, the aggregate loan limit will be reached before the student completes their degree. It's recommended parents and students discuss financial options with Financial Aid Services, should additional funding be needed.

 Additional financing options are available, such as payment plans or private/alternative loans. 

• For information about payment plans, please visit our Payment Plans webpage.
• For information about private/alternative loans, please visit our State and Private Loans webpage.
  • Please note that ÕýÆ·À¶µ¼º½ and Student Financial Services cannot recommend any particular lender and has no preferred arrangements; however, this page provides resources to assist students, parents, and families with their search.

Starting July 1, 2026, the Graduate PLUS loan program will be eliminated for new students. Students enrolled during the 2025-2026 academic year or earlier may be eligible to continue to participate in the Graduate PLUS Loan programs limited-time exemption.

The annual Direct Unsubsidized Loan limit remains unchanged at $20,500. However, there is a new $100,000 cap on the amount students can borrow in total (aggregate) for a graduate degree program. Students who qualify for the limited-time exemption that allows them to continue to participate in the Graduate PLUS Loan program are also exempt from the new Direct Unsubsidized aggregate and lifetime loan limits. 

The law allows some students to continue borrowing from the Graduate PLUS program without being subject to the new Direct Unsubsidized aggregate and lifetime borrowing limits under a limited exception for a maximum of three years or through their time to completion, whichever occurs sooner.

Students may qualify for the limited exception 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 (Direct Unsubsidized or Graduate PLUS) for that same program before July 1, 2026.

It is not possible to opt-out of the limited exception.

 After three academic years, or earlier if the student withdraws, ceases enrollment, or completes their program of study, they will no longer qualify for Graduate PLUS Loans and will become subject to the new aggregate and lifetime borrowing limits.

 Students will need to pursue other financing options, such as payment plans or private/alternative loans. 

• For information about payment plans, please visit our Payment Plans webpage.
• For information about private/alternative loans, please visit our State and Private Loans webpage.
  • Please note that ÕýÆ·À¶µ¼º½ and Student Financial Services cannot recommend any particular lender and has no preferred arrangements; however, this page provides resources to assist students with their search should they choose to go with this option.

Starting July 1, 2026, the Graduate PLUS loan program will be eliminated unless students qualify for a limited exception.

There is a new, higher annual Direct Unsubsidized Loan limit of $50,000. There is also a new cap of $200,000 on the amount students can borrow in total (aggregate) for a professional degree program, including any Direct Unsubsidized Loan amounts borrowed at the Graduate level. Students who qualify for a limited exception that allows them to continue to borrow Graduate PLUS loans are also exempt from the new Direct Unsubsidized annual, aggregate, and lifetime limits.

Who is considered a professional student?

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

• Pharmacy (Pharm.D.)
• Dentistry (D.D.S. or D.M.D.)
• Veterinary Medicine (D.V.M.)
• Chiropractic (D.C. or D.C.M.)
• Law (LL.B. or J.D.)
• Medicine (M.D.)
• Optometry (O.D.)
• Osteopathic Medicine (D.O.)
• Podiatry (D.P.M., D.P., or Pod.D.)
• Theology (M.Div. or M.H.L.)
• Clinical Psychology (Psy.D. or Ph.D.) 

The law allows some students to continue borrowing from the Graduate PLUS program without being subject to the new Direct Unsubsidized aggregate and lifetime borrowing limits under a limited exception for a maximum of three years or through their time to completion, whichever occurs sooner.

Students may qualify for the limited exception 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 (Direct Unsubsidized or Graduate PLUS) for that same program before July 1, 2026.

Students qualifying for a limited exception maintain the current annual limit of $20,500 for Direct Unsubsidized Loans.  It is not possible to opt-out of the limited exception.

 After three academic years, or earlier if the student withdraws, ceases enrollment, or completes their program of study, they will no longer qualify for Graduate PLUS Loans and will become subject to the new annual, aggregate, and lifetime borrowing limits.

 Students will need to pursue other financing options, such as payment plans or private/alternative loans. 

• For information about payment plans, please visit our Payment Plans webpage.
• For information about private/alternative loans, please visit our State and Private Loans webpage.
  • Please note that ÕýÆ·À¶µ¼º½ and Student Financial Services cannot recommend any particular lender and has no preferred arrangements; however, this page provides resources to assist students with their search should they choose to go with this option.