2026 Loan Changes
Federal Loan Updates
The One Big Beautiful Bill Act was signed into law on July 4, 2025.
This legislation will impact Federal Student Aid programs, including Federal Student Loan repayment plans, Federal Student Loan limits, Federal Parent PLUS Loans, and Federal Graduate PLUS Loans.
These changes will begin on July 1, 2026. Federal student loan amounts are subject to change if new or updated guidance is received from the Department of Education.
Loan Reduction for Less-Than-Full-Time Enrollment
Students who enroll full-time and remain enrolled full-time are eligible to receive the full-time annual loan limit.
Students who enroll less-than-full-time, or drop below full-time, could now have their federal student loans reduced in direct proportion to their less-than-full-time status. If full-time is 24 credit hours and a student enrolls for 18 credit hours for the academic year, the student will receive 75% of their annual loan limit eligibility (18/24 = 75%)
Federal student loans that will be affected by the new loan reduction requirements:
- Federal Subsidized Loans
- Federal Unsubsidized Loans
(Federal Parent PLUS Loans are not subject to reduction for less than full-time enrollment.)
Each loan will be reduced separately according to the student’s less-than-full-time enrollment status.
Example:
Full-time status for undergraduate students is 24 credits for the academic year (12 per semester)
A student who drops to 9 credits in the fall semester and maintains 12 credits for the spring semester will be 3 credits short of being considered full-time for the academic year. Due to this 3-credit shortage, the student’s federal loans must be reduced.
A student who drops to 9 credits in the fall semester and increases their enrollment to 15 credits for the spring semester will be considered full-time for the academic year. Since the student met the full-time requirements for the academic year, their loans do not have to be reduced.
Example:
Full-time status for undergraduate students is 24 credits for the academic year (12 per semester)
A first-year student who enrolls in 6 credits in the fall semester and also enrolls in 6 credits for the spring semester will be 12 credits short of being considered full-time for the academic year. Due to this 12-credit shortage, the student’s federal loans must be reduced.
Parent Plus Loan Updates
Parent PLUS Loans are for parents of dependent undergraduate students.
The One Big Beautiful Bill Act (H.R.1), signed into law by President Trump on July 4, 2025. For students, families, and institutions like PTC, this bill is significant because it changes some rules related to the federal aid (Title IV) programs. Some of those changes impact Federal Direct Parent PLUS Loans available to undergraduate students.
As of the development of this webpage, these changes are scheduled to go into effect July 1, 2026, and/or with the 2026-27 Free Application for Federal Student.
Current Limits (before July 1, 2026)
- Annual Limit: Determined by the formula of “Cost of Attendance – Other Aid (i.e. grants, scholarships, other loans)”
- Aggregate Limit: No limit
- Eligibility is based on student enrollment and a minimal credit check of the parent applicant
Changes Effective July 1, 2026
- Annual Limit: $20,000 per student (combined from all parents)
- Aggregate Limit: $65,000 per student
- Legacy Provision: Students with any existing Direct Loan may continue borrowing for up to 3 years or for the remainder of their expected time to complete the program, within the published length of time to do so, whichever is less.
- New Borrowers: Must seek alternative funding if limits are exceeded