Federal Student Aid Changes Coming in 2026

What's Changing on July 1, 2026  

• The Grad PLUS Loan program will be discontinued and will no longer be available to new borrowers.
• Legacy Provision: Students with a Grad PLUS Loan disbursed before July 1, 2026, may continue borrowing under existing Grad PLUS Loan rules for up to three more academic years or until their program ends - whichever comes first.
• Borrowing limits will now be capped as follows:

*as defined in an existing regulatory definition at CFR 668.2; no current PLNU programs qualify

• New lifetime borrowing cap of $275,000, excluding Parent PLUS borrowing.
• Undergraduate Student: no changes
• Enrollment Status: If enrolled less than full-time, loan eligibility (annual amount) will be prorated (reduced). 

What This Means for You  

• Current Grad PLUS borrowers: If your loan is disbursed before July 1, 2026 (for academic year 2025-2026), you may keep borrowing under the old terms for up to 3 more academic years or until your program ends, whichever comes first.
• Prospective graduate students: Grad PLUS Loans won't be available starting with the 2026-2027 academic year. Students with financial need will still be eligible for federal unsubsidized Direct Loans (within the new caps), scholarships, savings, or private loans.

Please contact our office for one-on-one guidance on how these changes may affect you.

(619) 563-2882 | gpssfs@pointloma.edu | Zoom Office Hours

Monday–Friday | 8:00 AM–4:30 PM

These federal loans are borrowed by parents to help cover the costs of a child's undergraduate education. Parents, not students, are responsible for repaying the loan.  

What's Changing on July 1, 2026 

• Parents may borrow up to $20,000 per year, with a lifetime maximum of $65,000 per student.
• Legacy Provision: Parents who borrowed before July 1, 2026, may continue borrowing under existing Parent PLUS Loan rules for up to three additional academic years or until the student completes their program, whichever comes first.

What This Means for You  

• Current Parent PLUS borrowers: You may still borrow under the old rules for the length of the Legacy Provision (see above).
• New Parent PLUS borrowers: Be aware of the new caps listed above. Families may need to plan for additional funding sources, including subsidized and unsubsidized student loans, as well as private loans.

After a student graduates, drops below half-time enrollment status, or leaves school, they are required to repay their federal student loans under a chosen repayment plan.  

We encourage any borrower currently repaying their federal loans to contact their loan servicer and discuss how these changes may impact their situation. This website provides a high-level overview; however, current borrowers in repayment may want to consider additional details before making a decision on how to proceed.  

What's Changing on July 1, 2026  

• Some existing repayment plans will end (ICR, PAYE, and SAVE).
• A new income-based repayment plan, known as the Repayment Assistance Plan (RAP), will be introduced. Payments under this plan will be determined based upon several factors:
  • payments are 1- 10% of income; could be as low as $10/month,
  • adjusted for dependents,
  • and possibly forgiven after 30 years of payments.
  • If an on-time payment reduces the principal by less than $50, the Department of Education (ED) will cover the difference - up to the lesser of the amount you paid minus interest, or $50.
• A new standard repayment plan will be created. Payments under this plan will have four fixed terms of 10, 15, 20, or 25 years (based on the amount borrowed). 

What This Means for You  

• Current Borrowers:

  • If no new loans are made on or after July 1, 2026, you are eligible to enroll in the current Standard, Graduated, Extended, or income-based (IBR) repayment plan, or you may opt into the new RAP.

    If you are currently enrolled in ICR, PAYE, or SAVE, you must transition to a different repayment plan by July 1, 2028 (either the current income-based repayment plan, the current standard plan, or RAP). If no selection is made, you will be automatically moved to RAP.

    It's important to note that all loans must be repaid under the same plan. So, borrowers with loans made before July 1, 2026, who take out additional loans on or after July 1, 2026, will be limited to choosing between the RAP and the new standard plan. 

• New Borrowers: For loans made on or after July 1, 2026, there will be two repayment plan options: the new standard repayment plan and the RAP. If no selection is made, you will be assigned to the new standards payment plan. 

Parent borrowers may choose to defer payments until six months after their student graduates, leaves school, or drops below half-time enrollment status. Otherwise, payments begin once the loan is fully disbursed (paid out) unless you request a deferment.  

We encourage any borrower currently repaying their federal loans to contact their loan servicer and discuss how these changes may impact their situation. This website provides a high-level overview; however, current borrowers in repayment may want to consider additional details before deciding on the best course of action.  

What's Changing on July 1, 2026 

• A new standard repayment plan will be created. Payments under this plan will have four fixed terms of 10, 15, 20, or 25 years (based on the amount borrowed).

What This Means for You  

• Current Borrowers:
  • If no new loans are made on or after July 1, 2026, you are eligible to enroll in the current Standard, Graduated, Extended, or income-based (IBR) repayment plan.
  • If you borrowed prior to July 1, 2026, AND subsequently borrow after July 1, 2026, repayment for all loans must be under the same payment plan, which is the new standard payment plan.
• New Borrowers: Loans made on or after July 1, 2026, can be repaid using only the new standard plan.