Federal Student Aid Updates

• Foreign Income Reporting: Foreign income must be included in adjusted gross income (AGI) when calculating Pell Grant eligibility.
• Family Farms and Family-Owned Small Businesses Exclusions: If the business or farm is family-owned and controlled (51% or more equity or control) and has 100 or fewer full-time or full-time equivalent employees, its net worth does not count toward assets. This exclusion includes:
  • Small businesses
  • Family farms on which the family resides
  • Family-owned commercial fisheries

• Students with nonfederal scholarships or grants (this includes from States, eligible institutions, or private sources) that cover the full cost of attendance may not receive Pell Grant funding.
• Students with a Student Aid Index (SAI) equal to or greater than twice the maximum Pell Grant amount will be ineligible for Pell Grant funding.

Example: If the maximum Pell Grant is $7,395, students with an SAI of $14,790 or more will not qualify for the Pell Grant.

Federal student loan proration means the annual loan maximum is adjusted based on the student’s percentage of full-time enrollment and will be reduced (adjusted proportionately) for students who are enrolled less than full-time. This applies to all Subsidized, Unsubsidized and Graduate PLUS Loans. 

The amount of loan funding a student can receive will depend on the number of credits they are enrolled in. For example, if full-time is considered 12 credits per semester/term (or 24 annually) and the student takes 9 credits, they are at 75% full-time status and are eligible for up to 75% of the total annual loan amount for that semester/term.

How Enrollment May Affect Loan Amounts – Undergraduate Examples

The below examples are for illustration only. Packaging and disbursements will vary based on each student’s unique circumstances. Actual student eligibility is determined by several factors including (but not limited to) loan history, the calculated SAI from the FAFSA, cost of attendance and enrollment status/intensity.

Disbursements outlined below do not include loan fees which are deducted from each disbursement and can vary depending on the amount borrowed and date each loan first disburses. 

Undergraduate Example 1: Student is a first-year, independent undergraduate with maximum loan eligibility calculated at full-time enrollment for each semester. The student is packaged with $9500 total in loans for the academic year to include $3500 in Subsidized and $6000 in Unsubsidized.

Example 1: Disbursement Schedule

Undergraduate Example 2: Student is a first-year, independent undergraduate with maximum loan eligibility calculated at half-time enrollment for each semester. The student is packaged with $4750 total in loans for the academic year to include $1750 in Subsidized and $3000 in Unsubsidized.

Example 2: Disbursement Schedule

How Enrollment May Affect Loan Amounts – Graduate Examples

The below examples are for illustration only. Packaging and disbursements will vary based on each student’s unique circumstances. Actual student eligibility is determined by several factors including (but not limited to) loan history, the calculated SAI from the FAFSA, cost of attendance and enrollment status/intensity.

Disbursements outlined below do not include loan fees which are deducted from each disbursement and can vary depending on the amount borrowed and date each loan first disburses.

Graduate Example 1: Student is in a graduate program with maximum loan eligibility calculated at full-time enrollment for each semester. The student is packaged with $20,500 in Unsubsidized loans for the academic year.

Graduate Example 1: Disbursement Schedule

Graduate Example 2: Student is in a graduate program with maximum loan eligibility calculated at half-time enrollment. The student is packaged with $10,250 in Unsubsidized loans for the academic year.

Graduate Example 2: Disbursement Schedule

• The loan borrowing cap is the combined undergraduate + graduate + professional loans borrowed.
• The cap includes any loan amounts repaid, forgiven, cancelled, or discharged.

PLEASE NOTE: Depending on each student’s individual borrowing history, their ability to borrow loans in the future may be impacted. Students should review their FSA borrowing history at Student.Aid.Gov website.

*Legacy Provisions: Graduate students who borrowed a Federal Direct Loan prior to July 1, 2026, while enrolled in a credentialed program, may be able to continue to borrow under current loan limits for up to three additional years in the same program or once they have reached the published program length (remaining time to credential), whichever is shorter. The student must remain continuously enrolled in the same degree program at the institution.

The legacy provisions expire if a student changes their degree program (major or credential), transfers to a new school, ceases enrollment, or is considered withdrawn from a semester or the university. Students who lose eligibility to borrow under the legacy provisions will be subject to the new limits. 

PLEASE NOTE: Depending on each student’s individual borrowing history, their ability to borrow loans in the future may be impacted. Students should review their FSA borrowing history at studentaid.gov.

• For students in graduate programs, the Federal Grad PLUS program may no longer be an option to help pay for educational costs.
  
  
• Legacy provisions for existing borrowers: Graduate students who borrowed a Federal Direct Loan prior to July 1, 2026, while enrolled in a program, may be able to continue to borrow under current loan limits for up to three additional years in the same program or once they have reached the published program length (remaining time to credential), whichever is shorter. The student must remain continuously enrolled in the same degree program at the institution. 
  
  The legacy provisions expire if a student changes their degree program (major or credential), transfers to a new school, ceases enrollment, or is considered withdrawn from a semester or the university. Students who lose eligibility to borrow under the legacy provisions will be subject to the new limits. 

*Legacy Provisions: Parents who have borrowed a Federal Parent PLUS Loan for a dependent student prior to 7/1/2026, while the student was enrolled in a credentialed program, may be able to continue to borrow under current loan limits for up to three additional years in the same program or once they have reached the published program length (remaining time to credential), whichever is shorter. The student must remain continuously enrolled in the same degree program at the institution.

The legacy provisions expire if a student changes their degree program (major or credential), transfers to a new school, ceases enrollment, or is considered withdrawn from a semester or the university. Parents who lose eligibility to borrow under the legacy provisions will be subject to the new limits. 

PLEASE NOTE: Depending on each parent's individual borrowing history, their ability to borrow loans in the future may be impacted. Parents should review their FSA borrowing history at Student.Aid.Gov website.

• New borrowers will be required to select from one of the following two new repayment plans
  • Repayment Assistance Plan (RAP): Monthly payments will be based on your income.
  • Standard Repayment Plan: Monthly payments are fixed for a term of 10, 15, 20 or 25 years.
• The following repayment plans are ending on July 1, 2028. Students who are in one of the below plans will need to switch to one of the new plans by July 1, 2028.
  • Pay as Your Earn (PAYE)
  • Income-Contingent Repayment (ICR)
• The Income-Based Repayment (IBR) plan is still available, but only for borrowers who meet specific criteria and have loans that were issued or consolidated before July 1, 2026

We understand that these changes may raise questions and could impact your financial planning and remain committed to providing you with key resources. Below are some links you may find helpful.

• StudentAid.Gov Announcements & Events: https://studentaid.gov/h/announcements-events
• U.S. Department of Education Updates: https://www.ed.gov/about/news

For information about student loan repayment contact your loan servicer.

If you still have questions, contact Financial Aid Advising by emailing [email protected] or calling 855-731-9218.