Federal Loan Changes
Changes to Federal Student and Parent Loans
Beginning July 1, 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: The 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.
Undergraduate Student Loan Limits New and Legacy
Dependent - $5,500-$7,500 annually with an aggregate maximum of $31,000.
Independent - $9,500-$12,500 annually with an aggregate maximum of $57,000.
Undergraduate parent PLUS Loan Limits New Borrower
$20,000 per student per year or up to the cost of attendance minus other aid, whichever is less. Also, a $65,000 lifetime limit per dependent student.
Undergraduate parent PLUS Loan Limits Legacy Borrower
Prior parent PLUS loan borrowers who have borrowed for their student prior to July 1,2026 can continue to borrow up to the College's cost of attendance less expected financial assistance for three years, or until the student's program ends, whichever is less.
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.