What Will Change in the 2026–2027 Aid Year?
Beginning with the summer 2026 term, federal student loan amounts are based on your enrollment level throughout the academic year. View this webpage for additional information on your loan eligibility.
Federal Graduate PLUS Loans will end for new borrowers on June 30, 2026.
What Does This Mean for Borrowers?
Beginning with the 2026–2027 aid year, the Federal Graduate PLUS Loan will no longer be available to new graduate student borrowers. We encourage you to review your financing options early so you can plan with confidence.
Please note: If you borrowed a Federal Direct Loan before July 1, 2026 while enrolled in a credentialed academic program at UMGC, you may be able to qualify for a limited legacy provision that allows you to:
- Continue borrowing Graduate PLUS Loans for up to 3 academic years in your program of study, or
- Borrow until you complete your current program, whichever comes first.
This legacy provision ends if you transfer to another school, withdraw, or cease enrollment.
The following annual and lifetime federal student loan limits will take effect beginning with the 2026–2027 aid year:
New Federal Loan Limits
| Type of Borrower | Current Loan Limits | New Loan Limits |
|---|---|---|
| Undergraduate | Varies depending on academic level and dependency status | No change from current limits |
| Graduate (Unsubsidized Direct Loans) | Annual: $20,500 Aggregate: $138,500 | Annual: $20,500 Aggregate: $100,000 |
| Graduate (PLUS Loan) | No limit | Eliminated for periods of study beginning on or after July 1, 2026 |
| Parent PLUS | Annual: COA minus other aid received Aggregate: None | Annual: $20,000 per dependent Aggregate: $65,000 per dependent |
| Professional Student** | Annual: $20,500 Aggregate: $224,000 | Annual: $50,000 Aggregate: $200,000 |
New lifetime maximum aggregate loan limit (excluding PLUS loans) = $257,500 (includes any amounts repaid, forgiven, canceled, or discharged)
What Does This Mean for Borrowers?
Student Borrowers
Depending on your individual borrowing history, your ability to borrow Federal Loans in the future may be impacted. To review your borrowing history, please visit the Federal Student Aid website.
If you received a Federal Direct Loan disbursement before July 1, 2026 as a Graduate borrower, you may continue to borrow under the legacy aggregate loan limits for three academic years or until program completion, whichever comes first.
Parent PLUS Borrowers
Parents borrowing during the 2026–2027 aid year will be subject to the new annual and lifetime limits.
Please note: Borrowing the full $20,000 annually for four years would exceed the $65,000 lifetime cap before the student completes a typical undergraduate program. Advance planning is strongly encouraged.
Current Parent PLUS Borrowers
A limited exception to the new loan limits may apply for up to three academic years if:
- The student remains continuously enrolled in the same program at the same institution as of June 30, 2026, and either:
- The parent had a Parent PLUS Loan disbursed for that program before July 1, 2026, or
- The student had a Direct Subsidized or Unsubsidized Loan disbursed for that program before July 1, 2026.
If these conditions are met, the new limits will not apply while the student completes the program (for up to three academic years), provided continuous enrollment is maintained.
When Does the Exception End?
The exception ends after
- Three academic years
- The student completes the program, or
- The student withdraws or ceases enrollment.
At that point, the $20,000 annual and $65,000 lifetime limits will apply.
Beginning July 1, 2026, federal regulations introduce significant changes to federal student loan programs, including updated loan limits, modifications to the Parent PLUS Loan program, and the elimination of the Graduate PLUS Loan program. In some cases, previous borrowers may qualify for a limited exception.
Beginning July 1, 2026, there will be changes to federal loan repayment options. New borrowers will be required to select from one of the following:
- Repayment Assistance Plan (RAP): Monthly payments based on your income.
- Standard Repayment Plan: Fixed monthly payments with terms of 10, 15, 20, or 25 years.
What Does This Mean for Borrowers?
- Starting July 1, 2026, new borrowers will be required to choose between the two repayment plan options listed above.
- All other repayment plans are ending. If you’re in a different plan now, you’ll need to switch to RAP or Standard by July 1, 2028.
If you’re not sure which option is best, contact your loan servicer.
If you receive non-federal scholarships or grants from UMGC, the state, or private organizations that fully cover your cost of attendance, you may not receive Federal Pell Grant funding.
If your financial aid does not fully cover your educational costs, consider exploring additional options, such as
Planning ahead can help you manage costs and stay on track academically.
FAQs
Get answers to the most commonly asked questions about 2025's One Big Beautiful Bill Act (OBBBA).
Most Federal Aid eligibility changes under the One Big Beautiful Bill Act take effect with the 2026–2027 aid year, which begins with the summer 2026 term at UMGC.
Your federal loan eligibility will be adjusted proportionally based on your enrolled credit hours.
The Federal Graduate PLUS Loan program will no longer be available to new borrowers starting with the 2026–2027 aid year, which begins with the summer 2026 term at UMGC.
You are generally considered a current borrower if you received a Federal Direct Loan before July 1, 2026 (the 2026–2027 aid year) while enrolled in an eligible academic program. You can review your loan history by logging into the Federal Student Aid website.
If you borrowed a federal loan before July 1, 2026 while enrolled in your current program at UMGC, you may be eligible to continue borrowing under the current rules for a limited time.
You may lose eligibility for legacy provisions if you
- Change or complete your program;
- Do not maintain continuous enrollment; or
- Transfer into or out of UMGC.
Plan your enrollment early, review your financial aid options, and explore payment plans, private financing, and employer tuition assistance to cover any remaining costs.
If your financial aid package does not fully cover your tuition and related expenses, there are several additional resources you may consider:
- Interest-Free Monthly Payment Plan: Enroll in a structured payment plan that allows you to spread your remaining balance into manageable monthly installments rather than paying the full amount upfront.
- Scholarships: Explore scholarship opportunities offered by UMGC and through your state of residence’s higher education board. In addition, students are encouraged to pursue private scholarships and supplemental funding available through employers, community and recreational organizations, places of worship, professional associations, and reputable online scholarship search platforms.
- Employer Tuition Assistance: Many employers offer tuition assistance or reimbursement programs as part of their employee benefits package. Contact your Human Resources department to learn about eligibility and application steps.
- Private Financing: Students may apply for private educational loans through a lender of their choice. UMGC provides access to ELMSelect, a historical lender comparison tool that allows you to review private loan options. Please note that you are not limited to the lenders displayed and may choose any eligible lender.
Carefully review each option to determine what best aligns with your financial circumstances and long-term goals.