{"id":41098,"date":"2026-04-27T19:03:35","date_gmt":"2026-04-27T19:03:35","guid":{"rendered":"https:\/\/www.augsburg.edu\/studentfinancial\/?page_id=41098"},"modified":"2026-04-27T19:07:28","modified_gmt":"2026-04-27T19:07:28","slug":"important-federal-loan-changes","status":"publish","type":"page","link":"https:\/\/www.augsburg.edu\/studentfinancial\/important-federal-loan-changes\/","title":{"rendered":"Important Federal Loan Changes"},"content":{"rendered":"<h2><span style=\"font-weight: 400;\">Undergraduate students<\/span><\/h2>\n<p><b>Federal loan program\u00a0<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Loan proration:<\/b><span style=\"font-weight: 400;\"> Requires institutions to prorate annual loan amounts in direct proportion to the percent of full-time status the student is enrolled. Full time undergraduate enrollment at Augsburg is defined as 12 credits or more.<\/span><\/li>\n<\/ul>\n<p><b>Parent PLUS annual and aggregate loan limits<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Change:<\/b><span style=\"font-weight: 400;\"> All parents (combined) may borrow $20,000 per year per dependent student and a $65,000 aggregate limit per dependent student (without regard to amounts forgiven, repaid, canceled, or discharged). Effective July 1, 2026.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Legacy provision:<\/b><span style=\"font-weight: 400;\"> If a borrower has a Federal Direct Loan made before July 1, 2026, while the dependent student is enrolled in a credentialed program, the parent can continue to borrow under current loan limits for three academic years or the remainder of their dependent student\u2019s expected time to credential, whichever is less.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">Graduate students<\/span><\/h2>\n<p><b>Graduate PLUS loan program<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Effective July 1, 2026 the Graduate PLUS loan program will be eliminated.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Legacy provision:<\/b><span style=\"font-weight: 400;\"> If a borrower has a Federal Direct Loan made before July 1, 2026, while enrolled in a credentialed program, the borrower can borrow from the GradPLUS program for three academic years or the remainder of their expected time to credential, whichever is less. Effective July 1, 2026.<\/span><\/li>\n<\/ul>\n<p><b>Graduate\/Professional annual and aggregate loan limits<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Change:<\/b><span style=\"font-weight: 400;\"> Caps the annual loan limits at $20,500 for graduate students and $50,000 for professional students.\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The definition for what is considered a professional program and thus eligible for higher loan limits is also changing. Beginning July 1, 2026, the only Augsburg program that will be considered a professional program for loan limit purposes is the following:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">Doctor of Clinical Psychology<\/span><span style=\"font-weight: 400;\"> (PsyD)<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The aggregate limit is capped at $100,000 for graduate students and $200,000 for professional students, and does not include amounts borrowed as an undergraduate. The lifetime borrowing limit for all federal student loans is $257,500, excluding borrowed Parent PLUS loan amounts. Effective July 1, 2026.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Legacy provision:<\/b><span style=\"font-weight: 400;\"> If a borrower has a Federal Direct Loan made before July 1, 2026, while enrolled in a credentialed program, the borrower can continue to borrow under current loan limits for three academic years or the remainder of their expected time to credential, whichever is less.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Loan proration:<\/b><span style=\"font-weight: 400;\"> Requires institutions to prorate annual loan amounts in direct proportion to the percent of full-time status the student is enrolled. Full time enrollment for graduate programs at Augsburg is defined as 6 credits or more.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">*Please note that this is the best information we have right now. Once the U.S. Department of Education (ED) publishes final rules, this information may change.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">We encourage you to make an appointment with Student Financial Services to go over your specific situation.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Undergraduate students Federal loan program\u00a0 Loan proration: Requires institutions to prorate annual loan amounts in direct proportion to the percent of full-time status the student is enrolled. Full time undergraduate enrollment at Augsburg is defined as 12 credits or more. Parent PLUS annual and aggregate loan limits Change: All parents (combined) may borrow $20,000 per &#8230;<\/p>\n","protected":false},"author":703,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-41098","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/www.augsburg.edu\/studentfinancial\/wp-json\/wp\/v2\/pages\/41098","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.augsburg.edu\/studentfinancial\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.augsburg.edu\/studentfinancial\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.augsburg.edu\/studentfinancial\/wp-json\/wp\/v2\/users\/703"}],"replies":[{"embeddable":true,"href":"https:\/\/www.augsburg.edu\/studentfinancial\/wp-json\/wp\/v2\/comments?post=41098"}],"version-history":[{"count":3,"href":"https:\/\/www.augsburg.edu\/studentfinancial\/wp-json\/wp\/v2\/pages\/41098\/revisions"}],"predecessor-version":[{"id":41101,"href":"https:\/\/www.augsburg.edu\/studentfinancial\/wp-json\/wp\/v2\/pages\/41098\/revisions\/41101"}],"wp:attachment":[{"href":"https:\/\/www.augsburg.edu\/studentfinancial\/wp-json\/wp\/v2\/media?parent=41098"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}