Federal Financial Aid Policy Changes for 2026–2027
In response to the recent changes in federal student loan programs, we are actively exploring all available options to help students continue pursuing their educational goals. We remain committed to identifying and providing the best possible loan solutions for our students and families.
As the private loan landscape continues to evolve, we will regularly review and update available options to better support students in funding their education. We encourage students and families to continue checking our private loan webpage for undergraduate and graduate students for the latest information and updates.
If you have any questions or need assistance navigating your financing options, please do not hesitate to contact our office. We are here to help.
Federal legislation passed in July 2025 (HR 1 – Public Law No. 119–21) introduces major changes to how graduate and parent loans will operate beginning July 1, 2026. The U.S. Department of Education is currently developing the regulations that will guide how these changes are implemented.
What Remains the Same for 2025-2026
- Undergraduate borrowing limits and Pell Grant eligibility are unchanged.
- Graduate students who begin their current program on or before June 30, 2026, may continue accessing Federal Direct Graduate PLUS Loans (Grad PLUS Loans) for that program for up to three additional years or until completion, whichever comes first.
Changes Effective July 1, 2026
Graduate Student Financing
Beginning with the 2026–2027 academic year:
- New graduate students will no longer be eligible for Grad PLUS Loans.
- Federal Direct Unsubsidized Loans will remain available but with new borrowing caps beginning July 1st, 2026:
- Up to $20,500 per student per year
- Up to $100,000 total lifetime
- All federal graduate loans will be subject to proration if the borrower is attending less-than-full-time.
Students currently borrowing for their existing program may remain under current rules for up to three additional years.
Additional federal guidance will clarify how programs are classified and how borrowing applies to part-time enrollment.
Graduate students looking for ways to finance their education in compliance with these new rules should review Marymount’s list of historic lenders for private loans.
Undergraduate Aid and Parent Loan Updates
- Undergraduate student loan limits and Pell Grant awards are not changing.
- All federal subsidized and unsubsidized loans will be subject to proration if the borrower is attending less-than-full-time.
- Parent PLUS Loans will have new limits beginning July 1, 2026:
- Up to $20,000 per student per year
- Up to $65,000 total lifetime
- Parents using Parent PLUS Loans before July 1, 2026, may continue under current limits for up to three additional years or until their student completes the program.
- Parents that need additional funding beyond the PLUS loan annual limit can also search for private student loans
Public Service Loan Forgiveness (PSLF)
PSLF continues without changes to eligibility or qualifying employment requirements.
Repayment Options
For loans first disbursed on or after July 1, 2026:
- A new Repayment Assistance Program (RAP) will replace existing income-driven repayment plans.
- Borrowers will be able to select:
- RAP
- Tiered Standard Plan
Borrowers with existing loans may remain in current income-driven repayment plans if enrollment is completed by June 30, 2028.
More information will be provided once federal repayment guidance is issued.
Still Awaiting Federal Clarification
The Department of Education will provide further direction on:
- Dual-degree program treatment
- Whether students may choose new unsubsidized caps instead of continued Grad PLUS access
- Proration of borrowing limits for less-than-full-time enrollment
Marymount will update students as regulations are finalized.
How Marymount Is Preparing
We are actively:
- Evaluating secure and competitive private loan partners for graduate financing
- Monitoring daily updates from federal agencies
Students anticipating the need for private financing may wish to review their credit reports through AnnualCreditReport.com.
Frequently Asked Questions (FAQs)
Will graduate students still have borrowing options?
If I currently borrow Grad PLUS Loans, do I keep eligibility?
Will borrowing still cover the full cost of attendance?
Who can I contact with questions?
We’re Here for You
Marymount is committed to supporting students through these changes and ensuring continued access to financial resources. This webpage will be updated as additional federal guidance is released.
