What Students with Federal Financial Aid Need to Know about One Big Beautiful Bill

The law includes a provision requiring loan amounts to be prorated for students enrolled less than full-time. This means part-time students may only be eligible for a portion of the annual loan limit.

The school is awaiting additional guidance from the U.S. Department of Education on how loan proration will apply to trimester calendars and borrower based academic calendars. Updates will be shared once clarification is available.

A Graduate PLUS loan is a federal loan available to students enrolled in graduate or professional programs to help cover education costs not fully covered by other financial aid. Graduate PLUS loans allow students to borrow up to the school’s cost of attendance minus other aid and require a basic credit check, but they are not based on financial need. These loans can be used for tuition, fees, and other education related expenses, and they typically have more borrower protections and lower interest rates than most private student loans. As of today, Graduate PLUS loans remain available under current federal rules, though eligibility for new borrowers is scheduled to change beginning July 1, 2026 under the One Big Beautiful Bill Act.

Beginning July 1, 2026, Grad PLUS loans will no longer be available to new graduate student borrowers.

Yes, in limited situations. A student who borrowed any Direct Loan for their current graduate program before July 1, 2026 may remain eligible to apply for Grad PLUS loans while completing that same program, for up to three additional years or until the program is completed, whichever comes first.

The student must remain enrolled in the same program at the same school for which they borrowed a Direct Loan before July 1, 2026.

Changing programs would end continuing eligibility for Grad PLUS loans. A program change includes moving between undergraduate and graduate programs or between different graduate programs.

No. The only way to become subject to the new borrowing limits is to withdraw from the program and later begin again under the new rules that began July 1, 2026.

• For professional programs starting after July 1, 2026, students may borrow up to $50,000 per year with a $200,000 lifetime limit.
• For all other graduate programs, students may borrow up to $20,500 per year with a $100,000 lifetime limit.

• Applied Behavior Analysis Graduate Certificate
• Education Specialist Degree in School Psychology
• Master of Arts in Educational Psychology

Students who borrowed graduate Unsubsidized loans before July 1, 2026 may continue to borrow under the current aggregate limit of $138,500 while completing the same program, for up to three additional years or until the program is completed, whichever comes first.

No. There are no changes to annual or aggregate undergraduate loan limits.

Yes. Undergraduate loans will count toward the new lifetime borrowing limits that apply across all programs.

Beginning July 1, 2026, Parent PLUS loans will be capped at $20,000 per student per year with a $65,000 lifetime limit per dependent student.

Yes. Parents who borrowed Parent PLUS loans for a student before July 1, 2026 may continue borrowing under current limits for up to three additional years or until the student completes the program, whichever comes first.

For new loans first disbursed on or after July 1, 2026, current income driven repayment plans such as IBR, PAYE, and SAVE will be eliminated and replaced with a new Repayment Assistance Program called RAP.

Loans disbursed after July 1, 2026 will be limited to RAP or standard repayment plans. Earlier loans may remain eligible for existing repayment options depending on the plan.

No. RAP borrowers are not locked into a 30-year repayment plan. Borrowers may switch to a standard repayment plan with terms ranging from 10 to 25 years.

Borrowers with no new loans made on or after July 1, 2026 may continue using Standard, Income Based Repayment, Graduated, or Extended plans and may also opt into RAP.
Borrowers currently enrolled in ICR, PAYE, or SAVE must transition to a new repayment plan by July 1, 2028. If no selection is made, the borrower will be placed into RAP.

If you are weighing a two- or three-year master’s program, a professional degree, or a program with extended clinical or research requirements, it helps to start planning early.

1. Begin by connecting with your one stop specialist. Ask how the new federal loan rules may apply to your specific program and get an idea of the full cost of attendance. This means a total of both direct and indirect costs. UMass Global’s current Cost of Attendance page can be found here.
2. Next, look at the federal loan amounts you may be eligible for based on the year you expect to start. If there is a gap between your total costs and the federal aid available under the new limits, it may be time to explore additional options.
3. If you are considering private or nonfederal loans, be realistic about credit requirements. Many private loans are credit-based. If you have a limited credit history, a U.S.-based cosigner with strong credit can help improve approval chances and pricing. International students studying in the U.S. often need a U.S.-based cosigner as well.
4. When comparing private loan options, pay close attention to interest rate ranges. Federal loans use a single fixed rate each year, while private loans often advertise a range. The lowest advertised rate is typically available to a small number of borrowers with very strong credit. You may want to ask lenders what percentage of applicants qualify for their lowest rate.
5. Also consider options beyond loans. Look for external scholarships that are targeted to your program or degree.
   • finaid.org – Comprehensive financial aid info
   • fastweb.com – Scholarship search tool
   • collegeboard.org – National scholarship and college planning site
6. You may also check with your employer to see if they offer tuition benefits.