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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 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 exception from the new loan borrowing limits:

• For Parent PLUS Loan borrowers to be eligible for the limited exception -
  • The student must have remained continuously enrolled in the same program of study at the same institution (Â鶹Éç) 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 will not apply 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), or through the scheduled end of the student's program, whichever is sooner.

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

After three academic years, or earlier if the student withdraws or otherwise ceases enrollment from Â鶹Éç or reaches their time to credential, a Parent PLUS Loan borrower will fall under the new $20,000 annual and $65,000 aggregate loan limits per student.

More information regarding time to credential and different example scenarios may be found further down on this page.

The following are 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) and regardless of which parent is borrowing

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 is 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 Â鶹Éç 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 with a disbursed federal loan at the graduate level may be eligible to continue participating in the Graduate PLUS Loan program through a limited exception.

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 exception that allows them to continue to participate in the Graduate PLUS Loan program are 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.

Students may qualify for this limited exception if:

• They remain continuously enrolled in the same program of study at Â鶹Éç 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 or otherwise ceases enrollment from Â鶹Éç, changes their program of study or reaches the scheduled end of their program, the Graduate PLUS Loan will no longer be an option.

After three academic years, or earlier if the student withdraws or otherwise ceases enrollment from Â鶹Éç, changes their program of study or reaches their time to credential, they will no longer qualify for Graduate PLUS Loan funding and will become subject to the new federal loan aggregate and lifetime borrowing limits.

More information regarding time to credential and different example scenarios may be found further down on this page.

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 Â鶹Éç 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 for new students. Students enrolled during the 2025-2026 academic year or earlier with a disbursed federal loan at the professional level may be eligible to continue participating in the Graduate PLUS Loan program through 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:

• Veterinary Medicine (D.V.M.)
• Law (LL.B. or J.D.)
• Theology (M.Div. or M.H.L.)
• Clinical Psychology (Psy.D.)
• Counseling Psychology (Psy.D.)
• School Psychology (Psy.D.)
• Clinical Child Psychology (Psy.D.)
• Health/Medical Psychology (Psy.D.)
• Family Psychology (Psy.D.)
• Forensic Psychology (Psy.D.)
• Clinical, Counseling and Applied Psychology, Other (Psy.D.)
• Chiropractic (D.C. or D.C.M.)
• Audiology/Audiologist (AuD)
• Speech-Language Pathology/Pathologist (SLP)
• Dentistry (D.D.S. or D.M.D.)
• Anesthesiologist Assistant (CAA)
• Physician Associate/Assistant (MSPA; PA)
• Athletic Training/Trainer (MSAT; MAT)
• Medicine (M.D.)
• Osteopathic Medicine (D.O.)
• Podiatry (D.P.M., D.P., or Pod.D.)
• Optometry (O.D.)
• Pharmacy (Pharm.D.)
• Occupational Therapy/Therapist (OT; MSOT; OTD)
• Physical Therapy/Therapist (PT; DPT)
• Registered Nursing/Registered Nurse (MSN)
• Nurse Anesthetist (DNAP)
• Nursing Practice (DNP) 

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.

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 or otherwise ceases enrollment from Â鶹Éç, changes their program of study or reaches the scheduled end of their program, the Graduate PLUS Loan will no longer be an option, and the student will become subject to the new federal loan annual, aggregate, and lifetime borrowing limits.

After three academic years, or earlier if the student withdraws or otherwise ceases enrollment from Â鶹Éç, changes their program of study or reaches their time to credential, they will no longer qualify for Graduate PLUS Loan funding and will become subject to the new federal loan aggregate and lifetime borrowing limits.

More information regarding time to credential and different example scenarios may be found further down on this page.

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 Â鶹Éç 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.

Scenario 1: Student Begins Enrollment in the 2025-2026 year

• The student is in an undergraduate program that has a published program length of 4 years.
• The student completes their first year at the end of 2025-26 and borrowed a Direct Subsidized Loan. They are scheduled to return for their second year in 2026-27.
• According to the published program length, they should be enrolled:
  • 2025-26 – Year 1
  • 2026-27 – Year 2
  • 2027-28 – Year 3
  • 2028-29 – Year 4 (graduates)

Is the student considered an interim exception borrower for 2026-27 and subject to the pre-July 1, 2026, parent PLUS limits?
Yes. The student’s parent qualifies for the Parent PLUS interim exception. The student has completed one year of a four-year program, leaving three years remaining for their expected time to credential. Because the expected time to credential is the lesser of three academic years or the remaining program length, the parent remains eligible under the interim exception for three academic years (4 – 1 = 3).

When would the student lose interim exception eligibility and be subject to the new parent PLUS limits?
After the 2028-29 academic year. If this borrower enrolled in 2029-30, the interim exception would have expired and they would no longer be eligible for the exception. Additionally, this student would lose interim exception eligibility earlier if they withdrew or otherwise ceased to be enrolled in the program of study at any point after receiving the interim exception.

If the parents have borrowed up to or more than the $65,000 aggregate in parent PLUS when the student reaches the period where they lose interim exception eligibility, what is the student’s eligibility for parent PLUS funds when the student returns to school?
During the student’s time to credential, the parents are not subject to the aggregate loan limit of $65,000; however, when the exception period expires, the new rules regarding parent PLUS eligibility go into effect, and all previously borrowed parent PLUS amounts are taken into consideration. If the parents borrowed up to or more than $65,000 on the student’s behalf, they have exhausted their eligibility.

Scenario 2: Student Begins Enrollment in the 2022-2023 year

• The student is in an undergraduate program that has a published program length of 4 years.
• The student completes their fourth year at the end of 2025-26, but needs to return for a fifth year in 2026-27 to complete the program.
• According to the published program length, they should be enrolled:
  • 2022-23 – Year 1
  • 2023-24 – Year 2
  • 2024-25 – Year 3
  • 2025-26 – Year 4 (should have graduated, but needs to return for one more year)
  • 2026-27 – Year 5 (graduates)
• The parents borrowed $80,000 in parent PLUS funds by the end of the 2025-26 academic year.

Is the student considered an interim exception borrower for 2026-27 and subject to the pre-July 1, 2026, parent PLUS limits?
No. The student is no longer eligible for the interim exception. The student has completed all four years of a four-year program, leaving no remaining time to credential. Therefore, the borrower has zero years of eligibility under the interim exception (4 – 4 = 0).

When would the student lose interim exception eligibility and be subject to the new parent PLUS limits?
This student never qualifies for the interim exception.

What is the student’s eligibility for parent PLUS when the student returns to school at that time, as the parents have already borrowed $80,000 in parent PLUS?
There is no remaining eligibility because the post-July 1, 2026, parent PLUS aggregate limit becomes effective for this student on July 1, 2026, and the parent has already borrowed more than the $65,000 aggregate limit for parent PLUS.

What if this student struggled in a few classes in the past, went part time in the past, or just needs to return for one more semester in Fall 2026 to obtain their degree/credential?
Time to credential is based strictly on the standard, full-time length of the published program. Every completed academic term counts, regardless of a student's enrollment intensity. In this scenario, the new PLUS limits are effective July 1, 2026, and because the parent(s) have borrowed a total amount that exceeds the $65,000 aggregate limit, they no longer have eligibility for the Parent PLUS Loan.

Scenario 1: Student Begins Enrollment in the 2025-2026 year

• The student is in a graduate program that has a published program length of 2 years.
• The student completes their first year at the end of 2025-26 and borrowed a Direct Unsubsidized Loan. The student is scheduled to return for their second year in 2026-27.
• According to the published program length, they should be enrolled:
  • 2025-26 – Year 1
  • 2026-27 – Year 2 (graduates)

Is the student considered an interim exception borrower for 2026-27 and subject to the pre-July 1, 2026, graduate PLUS limits?
Yes. The student is eligible for Graduate PLUS under the interim exception for 2026–27. The student has completed one year of a two-year program, leaving one year remaining for their time to credential. Therefore, the borrower has one year of interim-exception eligibility (2 – 1 = 1).

When would the student lose interim exception eligibility and access to graduate PLUS Loans?
This student would not have any eligibility for graduate PLUS after the 2026-27 academic year. Additionally, this student would lose interim exception eligibility earlier if they withdrew or otherwise ceased to be enrolled in the program of study at any point after receiving the interim exception.

Scenario 2: Student Begins Enrollment in the 2024-2025 year

• The student is in a graduate program that has a published program length of 2 years.
• The student completes their second year at the end of 2025-26, but needs to return for a third year in 2026-27 to complete the program.
• According to the published program length, they should be enrolled:
  • 2024-25 – Year 1
  • 2025-26 – Year 2 (should have graduated, but needs to return for one more year)
  • 2026-27 – Year 3 (graduates)

Is the student considered an interim exception borrower for 2026-27 and subject to the pre-July 1, 2026, graduate PLUS limits?
No, this student’s time to credential is 2 years (2 − 2 = 0). This borrower no longer has any eligibility for graduate PLUS.

When would the student lose interim exception eligibility and access to graduate PLUS?
This student never qualifies for the interim exception.

Scenario 3: Part-Time Enrollment in a Graduate Program

The Situation

• Program Length: Standard 2-year master's program.
• Graduation Requirement: 36 credit hours.
• Graduate Enrollment Intensity: 9 credit hours = full-time; 4.5 credit hours = half-time
• Student's Plan: The student decides to attend part-time (half-time), enrolling in 6 credit hours per semester for 6 consecutive semesters, beginning in Summer 2025.

The Impact on Financial Aid

• Time to Credential: Expected time to credential is based strictly on the standard, full-time length of the published program (two years). Every completed academic term counts toward this limit, regardless of the student’s enrollment intensity.
• Maintaining the Exception: As long as the student can complete the program within the two-year timeframe, they will maintain the limited exception. However, if additional semesters are needed beyond the two-year timeframe, the time to credential will be exceeded before completion of the program.
• Loan Proration: Because the student is enrolled part-time, the available loan amounts will be prorated (reduced) based on the exact number of credit hours being taken each term.

Generally, if a student attends one semester in an academic year – Fall, Spring, or Summer – that attendance counts as half of an academic year.  If a student attends more than one semester in an academic year – Fall and Spring, Spring and Summer, or Fall, Spring and Summer – that attendance counts as one academic year.  However, if a student has less than one year remaining in their time to credential, then we must evaluate each semester individually, rather than combining them.

Here is how the math works for the scenario above (based on a 2.0-year program limit):

• 2024–2025 Academic Year
• Summer 2025: Because this was the only semester attended this academic year, it counts as 0.5 years.
• Remaining Time: 1.5 years
• 2025–2026 Academic Year
• Fall 2025, Spring 2026, and Summer 2026: Because there is more than one year of eligibility remaining, these three semesters are grouped together as one standard academic year, counting as 1.0 year.
• Remaining Time: 0.5 years
• 2026–2027 Academic Year
• At this point, there is only 0.5 years left of eligibility within the time to credential. Because this is less than a full year, we must now count each term individually.
• Fall 2026: This individual term counts as 0.5 years, maximizing the 2.0-year limit. The student is eligible for the limited exception this term.
• Remaining Time: 0.0 years
• Spring 2027: The two-year time to credential has been exceeded. The limited exception can no longer be applied, and new loan regulations will take effect.