Federal Loan Updates FAQs
The One Big Beautiful Bill Act (OBBBA) includes several changes to the regulations and limits for Federal Student Loans. These changes impact federal loan limits, elimination of the Grad PLUS loan program and changes to repayment options.
Below are some frequently asked questions surrounding those changes. Please note that in some cases, there is still more information that is expected to come from the Department of Education to clarify aspects of this new law. We are monitoring changes daily and will continue to update this FAQ page as additional information becomes available.
What is happening to the Grad PLUS loan program?
The Grad PLUS loan program will be eliminated for new borrowers in any degree program starting July 1, 2026.
I have already borrowed federal loans for my current degree program. How do these changes impact me?
If you borrowed federal loans, including Grad PLUS loans, before July 1, 2026 for the program in which you are currently enrolled, you:
- May continue borrowing under the current loan terms and limits
- Can borrow for up to three additional years or until your expected degree completion date (whichever comes first).
The new borrowing caps only apply to new borrowers for that program after July 1, 2026.
Example: If you are entering your second year of COM in fall 2025 and have already taken out a Grad PLUS loan last year, you will continue to be eligible to take out a Grad PLUS loan for the remainder of your expected program completion date of May 2028.
Example: If you are a first year PsyD student entering in fall 2025 and have taken a Grad PLUS loan for the program, you may remain eligible for annual Grad PLUS loans for this program through Academic Year 2028-2029. You will not be able to take Grad PLUS loans after Academic Year 2028-2029 and may need to seek alternative funding for final expected year to complete the degree program.
I enrolled as graduate student this year and plan to attend medical school next year. How will the loan limits and Grad PLUS changes impact me next year?
The loan limits and elimination of Grad PLUS are effective for new loans in new programs beginning July 1, 2026. The exception for students already taking federal loans only applies per program. If you begin your new program after July 1, 2026, the new loan limits WILL apply and you will NOT be eligible for Grad PLUS for that degree program.
What are the new federal loan limits (caps)?
Starting July 1, 2026, new federal loan caps will apply to new federal loan borrowers:
- Annual professional student loan cap: $50,000
- Total cap for professional student loans: $200,000
- Overall lifetime cap for ALL* federal loans: $257,500
Graduate Students
- Annual graduate student loan cap: $20,500
- Total cap for graduate student loans: $100,000
- Overall lifetime cap for ALL* federal loans: $257,500
* The new overall lifetime aggregate limit of $257,500 applies to all federal student loans, including undergraduate, graduate and professional degree loans.
What is the difference between undergraduate, graduate and professional Students?
- Undergraduate students are working toward a bachelor’s degree
- Graduate students have already earned a bachelor’s degree and are pursuing an advanced degree, such as a Master’s
degree or PhD. - Professional students are also graduate level, but are enrolled in programs that lead to a licensed profession. For the purpose of this regulation, more clarity is still required to know which specific degree programs will qualify for the professional student loan limits. While the dental and medical degree programs are specifically included, the PsyD program remains unclear.
Does the lifetime cap include undergraduate/graduate debt?
Yes, the $257,500 lifetime federal loan cap for professional students includes ALL federal student loan borrowing, including any previous undergraduate, graduate and professional debt.
If you have further questions, please reach out to the KCU Office of Financial Aid:
Kristi Nicol | Director of Financial Aid
[email protected] | 816-654-7177
Kaley Williams | Associate Director of Financial Aid
[email protected] | 816-654-7178
To learn more about advocacy efforts and policy issues, please visit the following websites:
adea.org/home/publications/adea-publications/advocate-newsletter