Federal Loan Changes
Changes to Federal Student and Parent Loans
Beginning July1, 2026 for the 2026-2027 Academic Year
Disclaimer: The content provided on this page is for informational purposes only. The content represents Stonehill College's current understanding of these new federal loan regulations, and is not an official or binding statement of policy. Families are encouraged to visit the U.S. Department of Education's website Federal Student Aid for guidance.
Federal Loan Borrowers
New Borrowers: This is a person with no federal loans taken out prior to July 1,2026 or a person who has paid all prior federal loans in full. New borrowers are eligible for federal direct subsidized, unsubsidized, and parent PLUS loans.
Legacy Borrowers: This is a person who had a federal loan disbursed prior to July 1,2026 and will be enrolled in the same degree for the 2026-2027 academic year. Legacy borrowers will be eligible for subsidized, unsubsidized, graduate, and parent PLUS loans.
All other general eligibility requirements for federal student aid must still be met https://studentaid.gov/understand-aid/eligibility for new and legacy borrowers.
New Graduate Borrowers
Graduate PLUS loans have been eliminated. New Graduate students are eligible to borrow the federal unsubsidized loan for $20,500 annually and are limited to $100,000 aggregate, not including undergraduate federal loans.
Legacy Graduate Borrowers
They may still be eligible for graduate PLUS loans. Legacy borrowers are eligible to borrow the federal unsubsidized loan $20,500 annually and are limited to $138,500 aggregate, including all federal loans received for undergraduate study.
Federal Loan Proration
Beginning July 1,2026 for both New and Legacy borrowers, if a student does not attend full-time, their maximum annual loan limit is reduced proportionally. Loan proration is applicable to undergraduate and graduate students. Students enrolled less than half-time are still not eligible to borrow federal loans.
New Lifetime Loan Limits
For new borrowers after July 1,2026, there is a new aggregate loan limit for all federal direct loans borrowed of $257,500.