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2026–27 Changes to Federal Loans

The below information reflects the most current guidance available and is subject to change as we receive official guidance from the Department of Education.  Please contact our office with any questions regarding your financial aid.

Parents of Undergraduate Students

As of July 1, 2026, first-time Parent PLUS Loan borrowers have new annual and aggregate (lifetime) loan limits:

  • The new annual limit is $20,000 per year per dependent student.
  • The new aggregate (lifetime) loan limit is $65,000 per dependent student.
  • These new limits apply to all parents combined per dependent student.

An exception exists to allow Parent PLUS borrowers to borrow under the previous limits – called the “legacy provision”. Qualifications for this exception are as follows:

  • Student is enrolled as of June 30, 2026,
  • Student or their parent(s) previously borrowed a federal loan for their program of study, and
  • Student stays enrolled in the same program of study through graduation, or up to three years (2026-27, 2027-28, and 2028-29), whichever occurs first.

Graduate Students

As of July 1, 2026, the Graduate PLUS Loan program for graduate students will be eliminated for all new borrowers.

An exception exists to allow students to still borrow the Graduate PLUS Loan – called the “legacy provision”. Qualifications for this exception are as follows:

  • Student is enrolled as of June 30, 2026,
  • Student previously borrowed a federal loan for their program of study, and
  • Student stays enrolled in the same program of study through graduation, or up to three years (2026-27, 2027-28, and 2028-29), whichever occurs first.

Graduate student borrowers have new annual and aggregate loan limits, as well:

  • Graduate students may borrow up to $20,500 annually in Federal Direct Loans.
  • The aggregate borrowing amount of Federal Direct Loans is $100,000 per graduate student.

Part-Time Enrollment and Loan Eligibility

As of the Fall 2026 term, federal student loans for students enrolled less than full-time are subject to Schedule of Reduction (SOR) requirements. This means federal student loans for students enrolled less than full-time will be reduced in proportion to a student’s actual enrollment.

At S&T, full-time enrollment is defined as:

  • Undergraduate: 12 or more hours per term
  • Graduate: 9 or more hours per term

Schedule of Reduction (SOR) requirements apply to all Subsidized and Unsubsidized Federal Direct loans and Graduate PLUS loans offered under legacy provisions. Students must still be enrolled at least half-time to receive a federal direct loan.

Example 1 (Same fall & spring enrollment)
John is a freshmen student eligible for $3,500 of subsidized loan. John will be enrolled in 9 credits for the fall semester and estimate 9 credits for the spring term. A total of 18 credits. Full-time enrollment would be 24 total credits.
  • 18/24 = .75 or 75%
  • 75% x $3,500 = $2,625 max loan for year

Fall

  • 9 credits in term/18 credits in year = 50% of year
  • $2,625 x 50% = $1,313 ($1,312.50 rounded up)

Spring

  • 9 credits in term/18 credits in year = 50% of year
  • $2,625 x 50% = $1,312 ($1,312.50 rounded down)

Example 2 (Different fall & spring enrollment)
Jane is a graduate student eligible for $20,500 of unsubsidized loan. Jane will be enrolled in 6 credits for the fall semester, but estimates 9 credits for the spring term. A total of 15 credits. Full-time enrollment would be 18 total credits.
  • 15/18 = .8333 or 83%
  • 83% x $20,500 = $17,083 max loan for year

Fall

  • 6 credits in term/15 credits in year = 40% of year
  • $17,083 x 40% = $6,833

Spring

  • 9 credits in term/15 credits in year = 60% of year
  • $17,083 x 60% = $10,250

Example 3 (Withdrawing from a course during fall term)
Joe is a freshman student eligible for $3,500 of subsidized loan. Joe originally enrolled in 9 credit hours for the fall semester but withdrew from one 3 credit hour course. Joe is enrolled in 9 credit hours for the spring term. Joe's fall enrollment with the dropped course is now considered to be 6 credit hours, not 9. Joe was overpaid in the fall. The difference will be made with the spring disbursement.

At time of fall disbursement:

  • 18/24 = .75 or 75%
  • 75% x $3,500 = $2,625 max loan for year
  • Fall = 9 credits - $1,313 ($1,312.50 rounded up)
  • Spring = 9 credits - $1,312 ($1,312.50 rounded down)

At time of spring disbursement:

  • 15/24 = .625 or 63%
  • 63% x $3,500 = $2,188 max loan for year
  • Fall = Received $1,313, but should have been $875 - (overpaid $438)
  • Spring = $1,312 - $438 = $874

Once fall disbursement is complete, no changes will be made for dropped or enrolled courses in the remainder of the fall semester.  The change will be included in the spring disbursement.

Please visit Federal Student Aid for latest updates

Updated Information

S&T Student Financial Services is tracking changes and will update this website as new information or official guidance from the US Department of Education becomes available. If you have further questions, please reach out to our office. We appreciate your patience as we navigate these changes!

Last updated: August 5, 2026