What you need to know about the new updates to federal student loans:

• Recent federal legislation outlined in the One Big Beautiful Bill Act (OBBB) means changes are coming for federal financial aid in the 2026-27 academic year.
• As the Grad PLUS program is discontinued, new loan limits of $20,500 per year and $100,000 over your lifetime will apply for most graduate students.
• The new bill establishes a distinction between graduate students and professional students, with professional students qualifying for higher limits.
• Full-time graduate students can continue borrowing under current guidelines for up to three years, but part-time students may see their federal loans prorated.
• Some specifics about the new legislation are unclear, with further information and clarification expected throughout 2026.

Significant changes are coming to federal financial aid resulting from sweeping new legislation.

As part of the One Big Beautiful Bill Act (OBBB), new regulations involving loan limits, qualifications, and repayment options are set to be implemented on July 1, 2026, affecting students who start their program in or after the 2026-27 academic year.

The changes mostly involve annual and lifetime borrowing limits for graduate students, undergraduate students, and parents borrowing on behalf of dependents. They also draw a distinction between graduate students and professional students, with loan limits varying drastically depending on classification.

These changes are not expected to affect full-time students enrolled before July 1, 2026, who will have a three-year grace period following the deadline to complete their programs under current guidelines. Part-time students continuing after July 1 may have their financial aid prorated based on the number of credit hours in which they are enrolled.

While specifics of the new regulations are unclear and still being defined, we want to help you understand the upcoming changes and how they may affect your educational plans and goals. Read on to see the most up-to-date information relevant to Regis College students.

Graduate students — such as those enrolled in our online MSN, DNP, master’s in social work, or master’s in applied behavior analysis programs — who start their programs after July 1, 2026, will be subject to new regulations.

The main change affecting graduate students is the sunsetting of the Grad PLUS Loan program on July 1, 2026. Grad PLUS loans (the common name applied to Direct PLUS loans granted to graduate students) are highly flexible to accommodate the variable cost of graduate school. Currently, Grad PLUS loans have a loan limit defined on StudentAid.gov’s page as “the cost of attendance (determined by the school) minus any other financial assistance you receive.”

Under the new plan, this variable borrowing limit is eliminated in favor of a defined cap for loans:

• For most graduate-level borrowers classified as graduate students, loans will be capped at $20,500 annually with a $100,000 lifetime limit.
• Undergraduate loans you borrowed prior to the new regulations taking effect won’t affect your cap, but undergrad loans after July 1, 2026, may be counted toward the lifetime limit.
• These changes are not expected to affect full-time students enrolled prior to July 1, 2026, though part-time students may have their loans prorated after that date.
• Full-time graduate students who started before the July 1, 2026, date can borrow under pre-OBBB guidelines for three years or until program completion — whichever comes first.
• Students classified as professional students may be eligible for significantly higher annual and lifetime limits.

The new legislation distinguishes between graduate students and professional students, with the biggest consequence being the amount each classification may borrow annually and across their student careers.

Professional students, as defined by the regulations, may require more training or additional licensure beyond a traditional graduate degree. However, the exact definitions for these classifications are unclear as of January 2026, and they may not be intuitive. For example, Regis College’s nursing degree students will remain classified as graduate students rather than professional students, despite further licensure being required for full practice.

As we work with the Department of Education to get further clarification, this is what we know:

• Students classified as professional students will be eligible for significantly higher loan limits of $50,000 annually and $200,000 lifetime.
• The higher limits are intended to account for longer program duration, further training, and additional licensure.
• The new legislation uses vague language, so further clarification will be required to build a full understanding of the new classification.
• It’s also unclear how the new legislation might affect loan limits for dual-degree students (i.e., those enrolled in a graduate program and a professional program).
• Students in Regis College’s online graduate nursing programs will qualify as graduate students, not professional students.

Part-time graduate students who complete their program before the start date will not be affected by the new legislation.

However, part-time students continuing beyond July 1, 2026, will have their loan limits prorated based on the number of credits in which they’re enrolled each term.

As with the specific definition of graduate and professional student, the ways in which loan limits may be affected for part-time graduate and undergraduate students are unclear. We expect further guidance from the Department of Education in the coming months.

The OBBB doesn’t feature any direct changes for undergraduate loans. Students at the undergraduate level may continue to borrow under current guidelines.

However, undergraduate loans may count toward the new lifetime loan limit, meaning there are implications that could affect future study opportunities.

The biggest change that may affect undergraduate students comes from regulations implemented for Parent PLUS loans — the name commonly given to Direct PLUS loans granted to parents borrowing on behalf of dependent students. Here’s how Parent PLUS loans will change on July 1, 2026:

• Parents will be limited to borrowing $20,000 per year per dependent student.
• Parents will have a lifetime borrowing cap of $65,000 per dependent student.
• Parents who borrowed prior to the start date can continue borrowing under pre-OBBB guidelines for up to three years or until the end of their dependent student’s program — whichever comes first.

The new legislation eliminates current income-driven repayment options such as the Income-Based Repayment (IBR) Plan, the Pay As You Earn (PAYE) Plan, and the Saving on Valuable Education (SAVE) Plan. These options will be replaced by the Repayment Assistance Program (RAP).

As with other aspects of the new legislation, further information and specifics on the RAP are expected to be provided in the coming months. Here’s what we know as of January 2026:

• Repayment plans will have a maximum term of 30 years. However, borrowers can choose a standard plan instead, with terms ranging from 10 to 25 years.
• Borrowers with no new loans made on or after July 1, 2026, can continue to be eligible to enroll in the current Standard, current Income Based (IBR), Graduated, and Extended repayment plans, and could also opt in to the new RAP.
• All new loans made after July 1, 2026, will follow new regulations associated with the RAP.
• Borrowers currently enrolled in one of the programs being discontinued — IBR, PAYE, or SAVE — must make the transition to a new repayment plan by July 1, 2028. If no new plan is selected, they will be moved into RAP.

If you’re hoping for further clarification on the updated federal student loan regulations and guidelines, you can contact your advisor or email finaid@regiscollege.edu. You can also read more at studentaid.gov.

Here are some additional resources provided by national associations and Federal Student Aid (FSA) that may provide further insights:

• National Association of Independent Colleges & Universities (NAICU)
• National Association of Student Financial Aid Administrators
• One Big Beautiful Bill Act Updates (Federal Student Aid)
• Federal Student Loan Program Provisions Effective Upon Enactment Under the One Big Beautiful Bill Act (GEN-25-04)

At Regis College, we have a team of student support advisors and financial aid experts to help you navigate the financial aid process regardless of changes to federal regulation. It’s part of our full-service approach and dedication to helping learners achieve their academic and professional goals.

If you’re ready to take the next step in your education, we offer an online MSN and an online DNP each featuring six in-demand specialties, as well as an online Master of Social Work (MSW) and an online Master of Science in Applied Behavior Analysis.

Discover how our online degree and certificate options can fit into your career goals.