Important updates to federal student aid effective July 1, 2026

• Annual borrowing limits remain the same for undergraduate students. 

• Effective July 1, 2026, if you are enrolled in less than full-time hours (that apply to your degree and not excessive repeats), your loan amount will be adjusted based on your level of enrollment. You must be enrolled in a minimum of 6 credit hours toward your degree and not have excessive repeats to be eligible for student loans. If you drop or withdraw from a class after your loan is disbursed, your loan amount may be adjusted for the current and/or following semesters in the award year. To view different borrower scenarios (FAQs), please see the Department of Education's website.

• Effective July 1, 2026, new Parent PLUS Loan amounts will be capped at $20,000 per year, per dependent student, and a total maximum aggregate of $65,000 per dependent student (not per family).
• IMPORTANT: With the new aggregate limit of $65,000, if your parents borrow the annual maximum for a four-year undergraduate program, this will cause your parents to reach the aggregate limit before you complete your degree, leaving you and your parents without further access to the Parent PLUS loan.
• Limited Exception/Legacy Provision
  • Parents who have borrowed a Parent PLUS Loan prior to July 1, 2026, on behalf of a dependent student enrolled in a credentialed program at OSU may continue to borrow under pre-OBBBA loan program rules for up to three academic years or the difference between the published program length and the period of time the student has completed in the program, whichever is shorter.
  • To remain eligible for the exception, you (the dependent student) must continue enrollment in the same OSU program of study for which you previously received Parent PLUS loan disbursements. (Undergraduate students who change majors within the same degree or certificate will be considered enrolled in the same program of study.)
  • Parent borrowers of students who withdraw or have a break in enrollment during a required term will be considered a new borrower and are subject to the new loan amounts upon that student's return. Students must maintain enrollment in each of the required terms associated with their academic program (fall and spring). Summer term is treated as an optional term for undergraduate programs. (An OSU approved leave of absence is not considered to be a break in enrollment. Contact our office to determine whether your official leave of absence meets the requirement.)

• Effective July 1, 2026, new graduate student loan borrowing amounts will be capped at $20,500 per academic year and a total maximum aggregate of $100,000 (excludes undergraduate loan debt).
• Effective July 1, 2026, new borrowers enrolled in a professional program may borrow up to $50,000 per year and a total maximum aggregate of $200,000 (excludes undergraduate loan debt).
  • The only program currently offered at OSU that meets this criteria from the Department of Education is Veterinary Medicine (D.V.M).
• Effective July 1, 2026, if you enroll in less than full-time hours (that apply to your degree and are not excessive repeats), your loan amounts will be adjusted based on your level of enrollment. You must be enrolled in a minimum of 4 credit hours (fall or spring semesters) or 2 credit hours (summer semester), towards your degree, and not excessive repeats, to be eligible for student loans. If you drop or withdraw from a class after your loan is disbursed, your loan amount may be adjusted for the current and/or following semesters in the award year. To view different borrower scenarios (FAQs), please see the Department of Education's website.
• Limited Exception/Legacy Provision
  • If you are a graduate/professional student who has received an Unsubsidized or Graduate PLUS loan for a graduate or professional degree program prior to July 1, 2026, you may continue to borrow under pre-OBBBA loan program rules for up to three academic years or the difference between the published program length and the period of time the student has completed in the program, whichever is less.
  • To remain eligible for the exception, you must continue enrollment in the same OSU program of study for which you previously received federal loan disbursements.
  • If you withdraw or have a break in enrollment during a required term, you will be considered a new borrower and are subject to the new loan rules upon return.  You must maintain enrollment in each of the required terms associated with your academic program. (An OSU approved leave of absence is not considered to be a break in enrollment. Contact our office to determine whether your official leave of absence meets the requirement.)
    
    
    

• Effective July 1, 2026, the Graduate PLUS loan program will be eliminated for new borrowers.
• Effective July 1, 2026, if you enroll in less than full-time hours (that apply to your degree and are not excessive repeats), your loan amounts will be adjusted based on your level of enrollment. You must be enrolled in a minimum of 4 credit hours (fall or spring semesters) or 2 credit hours (summer semester), towards your degree and not excessive repeats, to be eligible for student loans. If you drop or withdraw from a class after your loan is disbursed, your loan amount may be adjusted for the current and/or following semesters in the award year. To view different borrower scenarios (FAQs), please see the Department of Education's website.
• Limited Exception/Legacy Provision
  • If you are a graduate/professional student who has received an Unsubsidized or Graduate PLUS loan for a graduate or professional degree program prior to July 1, 2026, you may continue to borrow under pre-OBBBA loan program rules for up to three academic years or the difference between the published program length and the period of time the student has completed in the program, whichever is less.
  • To remain eligible for the exception, you must continue enrollment in the same OSU program of study for which you previously received federal loan disbursements.
  • If you withdraw or have a break in enrollment during a required term, you will be considered a new borrower and are subject to the new loan rules upon return.  You must maintain enrollment in each of the required terms associated with your academic program. (An OSU approved leave of absence is not considered to be a break in enrollment. Contact our office to determine whether your official leave of absence meets the requirement.)

The legislation established a total lifetime limit of $257,500 for all combined federal student loans, regardless of any amount paid or discharged. This cap applies to the total amount of all federal student loans you have borrowed, including Subsidized, Unsubsidized and Graduate PLUS loans. Please note that this aggregate limit does not include Parent PLUS loans. The new lifetime loan limit of $257,500 includes student borrowing for undergraduate, graduate, and professional study.

• Beginning with the 2026-2027 academic year, if you have an SAI that is equal to or greater than twice the amount of the maximum Pell Grant award, you will no longer be eligible for the Pell Grant during that academic year. (Currently, this would make an applicant with an SAI equal to or greater than $14,790 ineligible for a Pell Grant.) 
• Beginning with the 2026-2027 academic year, if you receive scholarships, grants or other aid (excluding loans) from non-federal sources that cover your total cost of attendance (COA), you will be ineligible for a Pell Grant for the academic year, even if otherwise eligible for the program.