U.S. Department of Education Student Loan Changes
Federal Student Loan changes:
What Students Need to Know
Beginning July 1, 2026, the U.S. Department of Education is making significant updates to student loan rules. These changes will mostly affect students who start new programs on or after that date. If you are already in your program, or you begin your program before July 1, 2026, most of these changes will not apply to you. We know financial aid can feel overwhelming. Our goal is to help you understand the changes clearly, prepare early, and know exactly where to get support.
Please note: The U.S. Department of Education has not yet issued final regulations for the federal student loan changes described below, which are based on the most recent proposals and might change before the final regulations are published.
The National University team will continue to monitor the publication of the final rules and provide updates as new information becomes available. This page explains what we expect to happen, who may be impacted, and what changes could mean for NU students.
Have questions? Please contact our Academic and Finance Advising Teams.
Starting your journey with us?
[email protected]
858-642-8590
Current Students: Contact your academic and finance advisor who is listed on your portal.
Quick Overview of What’s Changing
Grad Plus Loans are ending
Students starting new graduate or professional programs on or after July 1, 2026, will not be able to borrow Grad PLUS Loans.
New annual and lifetime loan limits
Graduate and professional programs will have different federal loan caps beginning July 1, 2026.
Parent PLUS borrowing limits are changing
Parents of dependent undergraduate students will have new annual and total borrowing caps.
Some students may qualify for “Legacy Provisions”
If you borrow before July 1, 2026, you may be able to continue under the older loan rules for up to three academic years.
Choose Your Path to See
What This Means for You
Undergraduate Students
If you start your program before July 1, 2026, your federal loan options are expected to stay the same as long as you remain in the same degree program.
Starting on or after July 1, 2026:
- Changing your major within the same degree (for example: BS → BS) does not count as switching programs under proposed rules.
- Federal loan limits remain the same for undergraduates.
- Parent PLUS borrowing limits will change (see Parent section below).
Graduate Students
If you start your program before July 1, 2026, and have already borrowed federal loans for your program, you may continue using current rules, including Grad PLUS, while you complete your degree for up to three academic years.
If you start on or after July 1, 2026:
- Grad PLUS Loans will no longer be available.
- Annual borrowing will be capped at $20,500 (unsubsidized).
- Lifetime borrowing will be capped at $100,000.
If your program requires more funding than federal loans allow, NU offers scholarships, employer benefits, monthly payment plans, and private loan options.
Professional Programs
Certain programs are classified as professional under federal rules and are eligible for higher federal loan limits.
Professional programs currently include:
- Law (JD/LLB) Available at NU
- Clinical Psychology (PhD, PsyD) Clinical PsyD is Available at NU
- Pharmacy (PharmD)
- Dentistry (DDS/DMD)
- Veterinary Medicine (DVM)
- Chiropractic (DC)
- Medicine (MD)
- Optometry (OD)
- Osteopathic Medicine (DO)
- Podiatry (DPM)
- Theology (M.Div., M.H.L.)
If you start a new professional program on or after July 1, 2026:
- Annual loan limit: up to $50,000
- Lifetime loan limit: up to $200,000
HEAL-Eligible Programs (MPH, MHCA, PsyD)
If you are enrolled in an eligible program, you may qualify for additional unsubsidized loan eligibility, up to:
- $33,000 per academic year
(This includes the standard $20,500 plus an additional $12,500 for health professions.)
Students who borrow HEAL-related loans before July 1, 2026, may continue using this increased eligibility for up to three years or until completing the program.
Parent PLUS Borrowers
Beginning July 1, 2026:
- Parents can borrow up to $20,000 per year
- With a total limit of $65,000 per dependent undergraduate Parents who already borrowed Parent PLUS loans before July 1, 2026 may continue under the current rules for up to three academic years or until the student completes the program.
Current Federal Student Loans
Available Through June 30, 2026
The chart below provides an overview of the current caps on federal student loans originated through the rest of this academic year.
| Year | Dependent Students (except students whose parents are unable to obtain PLUS Loans) | Independent Students and dependent undergraduate students whose parents are unable to obtain PLUS Loans | Graduate and Professional Students |
|---|---|---|---|
| First Year Undergraduate Annual Loan Limit | $5,500 No more than $3,500 of this amount may be in subsidized loans. | $9,500 No more than $3,500 of this amount may be in subsidized loans. | N/A |
| Second Year Undergraduate Annual Loan Limit | $6,500 No more than $4,500 of this amount may be in subsidized loans. | $10,500 No more than $4,500 of this amount may be in subsidized loans. | N/A |
| Third Year and Beyond Undergraduate Annual Loan Limit | $7,500 No more than $5,500 of this amount may be in subsidized loans. | $12,500 No more than $5,500 of this amount may be in subsidized loans. | N/A |
| Graduate or Professional Student Annual Loan Limit | N/A | N/A | Graduate Students: $20,500 (unsubsidized only) Professional Students: $50,000 (unsubsidized only) |
| Subsidized and Unsubsidized Aggregate Loan Limit | $31,100 No more than $23,000 of this amount may be in subsidized loans. | $57,500 for undergraduates No more than $23,000 of this amount may be in subsidized loans. $138,500 for graduate or professional students No more than $65,500 of this amount may be in subsidized loans. | Graduate Students: $100,000 (unsubsidized only) Professional Students: $200,000 (unsubsidized only) |
| Parent PLUS Loans | The maximum PLUS loan amount a parent can borrow is the cost of attendance at the school the dependent student will attend minus any other financial assistance the student receives. | N/A; Independent students are not eligible for Parent PLUS Loans. | N/A; Graduate students are not eligible for Parent PLUS Loans. |
| HEAL Loans | Unsubsidized eligibility for an annual limit of $33,000. |
According to the proposed regulations, the following programs are considered “Professional” programs. All other post-baccalaureate programs are considered “Graduate” programs: (i) Pharmacy (Pharm.D.); Dentistry (D.D.S. or D.M.D.); Veterinary Medicine (D.V.M.); Chiropractic (D.C. or D.C.M.); Law (L.L.B. or J.D.); Medicine (M.D.); Optometry (O.D.); Osteopathic Medicine (D.O.); Podiatry (D.P.M., D.P., or Pod.D.); Theology (M.Div., or M.H.L.); and Clinical Psychology (Psy.D. or Ph.D.).
Source: U.S. Department of Education, Direct Subsidized and Direct Unsubsidized Loans Webpage
Frequently Asked Questions
It depends:
- Undergraduate students who change majors within the same degree are not considered to have changed programs.
- Graduate students who change programs after July 1, 2026, will fall under the new borrowing limits unless the new program falls within the same 4‑digit Classification of Instructional Programs (CIP) code.
If you’re considering a program change, speak with NU advising before making the switch.
If you leave your program after July 1, 2026, you will generally be subject to the new federal borrowing limits when you return—even if you originally borrowed before that date.
However, students who take an approved Leave of Absence (LOA) of up to 180 days may be able to retain Legacy Provision eligibility when they return, depending on their individual circumstances.
Because this can be especially important for military‑affiliated students and others who may need to step away temporarily, we strongly encourage you to connect with NU Academic and Finance Advising before taking a break. Your advisor can help you understand your options and how a leave may affect your loan eligibility.
Many NU students combine resources including:
- NU scholarships and grants
- Employer tuition assistance
- Military and veteran education benefits
- Monthly payment plans
- Private education loans
Your Academic and Finance Advisor can help you explore your options and build a personalized plan.
No. Loan rules do not change accreditation, licensure, or clinical requirements.
For Parent PLUS Loans taken out before July 1, 2026, the maximum PLUS loan mount a parent can borrow is the cost of attendance at the school the dependent student will attend minus any other financial assistance the student receives.
Parents with PLUS Loans borrowed before July 1, 2026, may continue under the previous borrowing limits for no more than three years. If a student has completed one or more years of a program, the number of years they are eligible for the exception is determined by subtracting the total program length from how much of the program a student has already completed.
Need Support or Have Questions?
NU’s Academic and Finance Advising team is here to help you understand how these changes might affect your educational path, financial planning, and program start timeline. NU offers scholarships, grants, payment plans, and Whole Human Education supports designed to help reduce student borrowing and keep education affordable.
We’re Here to Support You
Financial decisions can be stressful—but you’re not alone. NU’s Academic and Finance Advising teams are available to help you:
- Understand how new rules apply to your program
- Plan your start date
- Explore funding options
- Reduce borrowing wherever possible
- Navigate repayment questions for existing loans
New Students
[email protected]
858-642-8590
Current Students: Contact your academic and finance advisor who is listed on your portal.
NU is committed to making education affordable and accessible
As federal loan structures change, NU will continue to offer:
NU Scholarships and Grants
Designed to help reduce the cost of your education and lower reliance on loans.
Flexible Monthly Payment Plans
Options to spread out payments without additional interest charges.
Whole Human Education Supports
As part of NU’s Whole Human Education approach, you also have access to:
- Wellbeing and mental health resources
- Academic coaching
- Career and internship support
- Financial wellness resources
These services are here to help you stay on track, lower stress, and focus on what matters most—your success.
Personalized Financial Aid Advising
NU’s Academic and Finance Advising team can help you:
- Understand how these changes affect your situation
- Explore funding options
- Plan ahead for program start dates
- Navigate repayment choices
Key Terms to Know
Please note that all information provided is not final and will be updated as we receive additional details from the Department of Education.