Federal Loan Changes beginning July 1, 2026

Congress passed the One Big Beautiful Bill Act in July 2025, which included significant changes to the Title IV loan programs that will be effective as of July 1, 2026. Caldwell University is closely monitoring all major changes to Title IV funds and will continue to update this page as new information becomes available.

Here’s what we know to help you plan and pay for college:

Undergraduate Borrowers:

Undergraduate loan amounts based on academic level and dependency status will continue.

Parent Borrowers (Parent PLUS Loans)

Annual and Aggregate Limits: Starting July 1, 2026, new Parent PLUS loans will have a $20,000 annual limit per student and a $65,000 aggregate limit per student. Parents can no longer borrow up to the full cost of attendance.

Legacy Provision: If a Parent PLUS loan was disbursed prior to July 1, 2026, for the 2025–2026 award year, then under the provision the student will still be able to borrow a Parent PLUS Loan to the cost of attendance for 3 years or until the student completes or leaves their program, whichever comes first.

Graduate PLUS Loan Borrowers

Elimination for New Borrowers: Effective July 1, 2026, Graduate PLUS loans will no longer be available to new borrowers.

Legacy Provision:  If a Grad PLUS loan was disbursed prior to July 1, 2026, for the 2025–2026 award year, then under the provision the student will still be able to borrow a Grad PLUS Loan to the cost of attendance for 3 years or until the student completes or leaves their program, whichever comes first.

Graduate Unsubsidized Loans

Annual Limit: Remains at $20,500 per year. Aggregate Limit: Reduced from $138,500 to $100,000.

Legacy Provision: Current borrows may continue to borrow up to the $138,500 aggregate limit.

Grandfathering (Legacy Provisions)

Students who borrowed a loan for the 2025–2026 award year prior to July 1, 2026 will continue under the current limits for a maximum of 3 years or until the student completes their program of study or is no longer continuously enrolled, whichever comes first.

• Parent PLUS Loans: Borrowers may continue to borrow up to the cost of attendance for the academic year with no aggregate limit.
• Graduate PLUS Loans: Current 2025–2026 borrowers may continue to borrow up to the cost of attendance with no aggregate limit.
• Graduate Unsubsidized Loans: The annual limit of $20,500 remains unchanged, and borrowers may continue up to the $138,500 aggregate limit.

Note: These provisions apply only while the student is eligible for grandfathering.

Lifetime Maximum Loan Limits

Excluding Parent PLUS and Grad PLUS, starting with the 2026–2027 award year, the lifetime maximum aggregate loan limit for student borrowers is $257,500- includes amounts borrowed at the undergraduate, graduate and professional levels. Students with legacy provisions are not subject to this limit. Loans cannot be paid down to borrow additional funds beyond these limits.

Schedule of Reductions (Enrollment-Based)

Reduction for Less-Than-Full-Time Enrollment:

Effective July 1, 2026, institutions must reduce loan amounts for students enrolled less than full-time for the academic year. For example, if full-time enrollment for an undergraduate student is 24 credits per year, any student who completes fewer than 24 credits will be considered less than full time and will have their annual loan limit reduced accordingly.

This reduction applies to Direct Subsidized Loans, Direct Unsubsidized Loans, and Graduate PLUS Loans. Parent PLUS Loans are not subject to this reduction.

We will continue to update this page as we learn more.

Our student financial services team is here to assist you with any questions you may have. Contact us at [email protected].