Important Financial Aid Changes for 2026–2027
Federal student aid regulations have changed beginning with the 2026–2027 academic year. These updates affect federal student loan eligibility, borrowing limits, and Parent and Graduate PLUS Loans.
Whether you're a new or returning student, it's important to understand how these changes may impact your financial aid.
What's Changing?
Beginning July 1, 2026, new federal legislation changes how federal student loans are awarded.
The biggest changes include:
- Federal loan amounts are now based on enrollment intensity (credits enrolled).
- Students enrolled less than full-time will receive reduced loan eligibility.
- Graduate PLUS Loans are discontinued for new borrowers.
- Parent PLUS borrowing limits have changed.
- Students should review their enrollment plans before registering.
Enrollment & Loan Eligibility
Federal Loan Eligibility is Now Based on Enrollment
Previously, students enrolled at least half-time generally received their full annual federal loan eligibility.
Beginning in 2026–2027:
- Loan eligibility is prorated based on enrollment intensity.
- Students enrolled below full-time will receive a reduced loan amount.
- Students must still be enrolled at least half-time to qualify for Federal Direct Loans.
Full-Time Enrollment Requirements
|
Student Type |
Full-Time |
|
Undergraduate |
12 or more credit hours |
|
Graduate |
9 or more credit hours |
Half-Time Minimum
|
Student Type |
Half-Time |
|
Undergraduate |
6 credit hours |
|
Graduate |
4.5 credit hours |
Students enrolled below half-time are not eligible for Federal Direct Loans.
How Loan Proration Works
Your annual federal loan eligibility now depends on your enrollment level.
|
Enrollment Level |
Annual Loan Eligibility |
|
Full-Time |
100% |
|
Three-Quarter-Time |
Approximately 75% |
|
Half-Time |
Approximately 50% |
|
Less than Half-Time |
Not Eligible |
This means students taking fewer credits may borrow less than they could in previous years.
Enrollment Level and Percent of Annual Loan Limit
|
Enrollment Level |
Undergraduate Credits |
Graduate Credits |
% of Annual Loan Limit |
|
Full-Time |
12+ |
9+ |
100% |
|
Three-Quarter-Time |
9–11 |
7–8 |
~75% |
|
Half-Time |
6–8 |
4.5–6 |
~50% |
|
Less than Half-Time |
Under 6 |
Under 4.5 |
Not eligible for federal loans |
Estimated Annual Direct Loan Eligibility by Grade Level
Figures below apply the One Big Beautiful Bill Act proration formula to standard Direct Subsidized/Unsubsidized annual loan limits, shown separately for dependent and independent undergraduate students. Independent status includes students whose parent is denied a Parent PLUS Loan. These are estimates for illustration; a student's exact award is calculated using their specific enrolled credit hours.
|
Grade Level |
Status |
Full-Time (100%) |
Three-Quarter-Time (~75%) |
Half-Time (~50%) |
|
Freshman (0–29 credits) |
Dependent |
$5,500 |
$4,125 |
$2,750 |
|
Freshman (0–29 credits) |
Independent |
$9,500 |
$7,125 |
$4,750 |
|
Sophomore (30–59 credits) |
Dependent |
$6,500 |
$4,875 |
$3,250 |
|
Sophomore (30–59 credits) |
Independent |
$10,500 |
$7,875 |
$5,250 |
|
Junior / Senior (60+ credits) |
Dependent |
$7,500 |
$5,625 |
$3,750 |
|
Junior / Senior (60+ credits) |
Independent |
$12,500 |
$9,375 |
$6,250 |
|
Graduate |
— |
$20,500 |
$15,375 |
$10,250 |
Parent PLUS Loan Changes
New Parent PLUS Borrowing Limits
Beginning July 1, 2026:
- Annual borrowing limit per student:
- $20,000
- Lifetime borrowing limit per student:
- $65,000
Important Information
The lifetime limit is cumulative and remains in place regardless of whether previous loans have been:
- Forgiven
- Repaid
- Canceled
- Discharged
Families should begin financial planning early and explore additional funding options if necessary.
Graduate PLUS Loan Changes
Graduate PLUS Loans Discontinued
Effective July 1, 2026:
Graduate PLUS Loans are no longer available for new borrowers.
Graduate students may continue borrowing through Federal Direct Unsubsidized Loans, subject to annual limits.
Students who previously received eligible federal loans before July 1, 2026, may qualify under legacy provisions.
Legacy (Grandfathered) Borrowers
Some students may continue borrowing under previous rules.
You may qualify if:
- You remain enrolled in the same academic program.
- You received a federal loan disbursement for that program before July 1, 2026.
- You continue meeting federal eligibility requirements.
Eligible students may continue borrowing under previous limits for:
- Up to three academic years, or
- Until program completion,
whichever occurs first.
Aggregate Federal Loan Limits
Current lifetime borrowing limits:
|
Student Type |
Lifetime Limit |
|
Dependent Undergraduate |
$31,000 |
|
Independent Undergraduate |
$57,500 |
|
Graduate/Professional |
$257,500 |
Planning Ahead
Students are encouraged to:
- Review their financial aid offer each semester.
- Enroll in the credits needed before the add/drop deadline.
- Understand how enrollment changes affect loan eligibility.
- Meet with a Financial Aid Counselor before adjusting their schedule.
Other Ways to Pay for College
Families may also consider:
- Payment plans
- Savings or current income
- Private education loans
- Scholarships
- Employer tuition assistance
Frequently Asked Questions
- Federal regulations now require loans to be prorated based on your enrollment intensity.
- Yes
- Students enrolled at least half-time remain eligible but may receive a reduced loan amount.
- Students enrolled below half-time are no longer eligible for Federal Direct Loans.
- No
- These changes apply specifically to federal student loan eligibility.
- Review the Loan Proration Chart or contact the Office of Scholarships & Financial Aid for an individualized estimate.
Contact the Office of Scholarships & Financial Aid
Have questions about how these changes affect you?
- Office of Scholarships & Financial Aid
- 601 S. Martin Luther King Jr. Drive Suite 201
- Winston-Salem, NC 27110
- Phone: 336-750-3296
- Email: finaid@wssu.edu
